City council returns proposed SUMP; Resets review process

The Baguio City Council has formally returned the proposed Smart Urban Mobility Project (SUMP) to the city government’s executive department, effectively sending it back to square one.
This move came after the Baguio City Council found that the content of the proposal lacks sufficient detail and that there has been a change in leadership at Metro Pacific Tollways Corporation (MPTC), the original proponent of the proposal.
The proposed SUMP project aims to tackle Baguio’s long-standing congestion issues through a suite of interconnected solutions including advanced traffic signal systems, centralized smart parking management, GPS-equipped public utility vehicles with real-time passenger information, and a congestion fee on vehicles within the Central Business District during peak hours.
The component of the proposal to impose a congestion fee has been met with widespread criticism from residents, transport groups, and civil society groups.
The decision to return the proposal was reinforced by multiple concerns raised by members of the Baguio City Council during the regular session on January 19, 2026.
Councilor Jose Molintas expressed that councilors were later blamed during previous public consultations on the recently withdrawn proposed public market redevelopment by SM Prime Holdings, Inc. (SMPHI) as if they were endorsing the project. He urged the MPTC to initiate the conduct of public consultations and show proof that participants understood the proposal and that they were willing to accept it.
Councilor Peter Fianza raised several concerns over the legal framework for the proposed project.
He noted that the PPP Code and its Implementing Rules and Regulations (IRR) lack clear provisions regarding concession agreements. He cited Section 42 of the IRR, which empowers the PPP Governing Board to issue definitive guidelines whenever a project is submitted for coordination or approval, in order to clarify the responsibilities and limitations of both the government and the private proponent.
Fianza also flagged possible non-compliance with Section 10 of the PPP Code which sets limits on government undertakings in unsolicited proposals. He warned that the proposal appeared to require the Baguio City Council to pass ordinances in support of the project, raising questions on whether legislative action could effectively serve as a form of guarantee for the private proponent.
He cautioned that the Baguio City Council should not be compelled to legislate in favor of a private contract, stressing that policy decisions must remain independent of any PPP arrangement.
Fianza also raised concerns about possible issues under Section 130 of the Local Government Code which sets limits on the taxing and revenue-raising powers of local government units (LGUs). He pointed out that LGUs are not allowed to delegate the collection of taxes, fees, and charges to private entities, warning that certain provisions in the proposal could risk violating this restriction.
He further pointed out that the proposal reflected no coordination with the Department of Public Works and Highways (DPWH), even though the roads covered by the proposal fall under the agency’s jurisdiction. He also stressed the need to consult neighboring municipalities. Without proper coordination, the project could transfer traffic congestion to adjacent areas rather than address it, affecting localities outside Baguio City, he said.
Councilor Elmer Datuin proposed that, if the project moves forward, Baguio residents should be granted a 100% exemption from the congestion fee.
Meanwhile, Councilor Leandro Yangot Jr. called for a more comprehensive environmental and social impact assessment before any implementation.
Molintas urged that the proposal should consider the city’s ongoing and planned infrastructure projects such as new parking buildings near Burnham Park and the Maharlika Livelihood Center to ensure that the Smart Urban Mobility system can integrate efficiently with existing city operations.
Similarly, Councilor Betty Lourdes Tabanda recommended that the proponent take into account ongoing traffic management initiatives such as the city’s recent allocation for the installation of traffic lights near Sunshine Park and other areas, so that the project’s systems can be coordinated with current and future efforts to reduce overall costs and improve efficiency.
With all these concerns raised by the Baguio City Council, the proponent is expected to revise or adjust the proposal. After revision, the proposal will return to the City Development Council for confirmation. It will then undergo another completeness check before it gets forwarded to the Baguio City Council which will have a fresh 120-day review period, effectively nullifying the earlier February 4 deadline.
Donald Saurombe, MPTC representative, agreed to have the proposal returned to them to allow time for a small-scale demonstration of the project before pursuing full-scale implementation. **Jordan G. Habbiling