The Baguio City Council has officially confirmed that Mayor Benjamin Magalong does not need separate approval from the local legislative body to sign the inflation-indexed agreement for the Baguio City Integrated Terminal (BCIT), paving the way for terminal fee adjustments that are transparently linked to national inflation rates.
The confirmation came through Resolution 20-2026 which affirms that Magalong is already authorized under Section 1(h) of Ordinance 42-2025. The ordinance, enacted by the previous City Council in June 2025, approved the BCIT project while imposing major conditions to safeguard the city and its residents.
The BCIT will be implemented through a Public-Private Partnership (PPP) scheme, with Megawide Construction as the proponent.
Located in Dontogan Barangay along Palispis Highway, the project is a planned transport hub designed to decongest Baguio’s central business district, serving southbound buses, public utility vehicles, jeepneys, modern jeepneys, and taxis. The facility will offer ticketing booths, sheltered waiting areas, clean restrooms with diaper-changing and lactation stations, commercial parking, and park-and-go services.
The Inflation-Indexed Fee Agreement sets the following predictable framework for periodic fee adjustments:
The Terminal Passenger User Fee is adjusted every three years based on the average inflation rate of the last 36 months as published by the Philippine Statistics Authority (PSA); and
The terminal Bus Dispatching Fee and Terminal Bay Usage Fee is adjusted annually based on the average inflation rate of the last 12 months.
The formula ensures that adjustments are objective, transparent, and reflect economic realities, eliminating discretionary increases by either the city government or the terminal operator. Fees can increase or decrease, depending on actual inflation, with adjustments submitted to the Baguio City Council at least 30 days before implementation.
City Legal Officer Althea Alberto emphasized that the resolution prevents potential legal challenges regarding the Mayor’s authority to execute the Index Fee Agreement.
“Our intention is to ensure compliance with the Local Government Code and the ordinance requiring a separate agreement so as to avoid future questions about the City Mayor’s authority to enter into an escalation agreement,” she said.
Members of the City Council welcomed the approach, noting that the PSA-based formula provides an independent third-party benchmark.
“Since it is being determined by a reputable third party, I support this proposal,” Councilor Fred Bagbagen said.
The resolution was signed by Magalong on January 15, 2026. With this resolution, the city government ensures that passenger terminal fees at BCIT remain fair, predictable, and tied to the national economy. **Jordan G. Habbiling
