BAGUIO CITY – SM Prime Holdings has officially withdrawn its P4.5-billion public-private partnership (PPP) proposal to redevelop and modernize the century-old Baguio City Public Market, Mayor Benjamin Magalong announced on January 4, 2026. The decision ends months of controversy over the project, which faced strong opposition from vendors, residents, and heritage advocates fearing “mallification” of the historic trading hub.
In a December 19, 2025, letter to Magalong, SM’s vice president for legal affairs Helene Go cited unresolved issues among stakeholders: “It appears that Baguio City—the executive and legislative branches, the public market vendors and other stakeholders—have several matters to settle before the project may proceed.”
The proposal envisioned a four-story multilevel facility (some reports mentioned seven stories with parking) on over three hectares of the six-hectare site, accommodating all ~4,000 vendors while adding commercial spaces under a 50-year lease. Critics argued it prioritized privatization over preserving the market’s cultural role as an affordable, open-air trading center.
With SM’s exit, the city loses a major PPP investor for upgrades, forcing reconsideration of alternatives (e.g., full public funding or new bidders). The City Council was set to vote by January 10, 2026, after a 120-day review.
Crowds rushed the market post-announcement, reflecting relief among opponents.
Project Snapshot:
| Aspect | Details |
|---|---|
| Proponent | SM Prime Holdings |
| Cost | P4.5-5.4 billion |
| Scope | Multilevel building; vendor relocation |
| Lease Term | 50 years |
| Status | Withdrawn (Dec 19, 2025 letter) |
| Opposition Reason | Fears of “mallification” & privatization |
A victory for heritage preservation—for now.