Baguio council okays city’s integrated terminal

BAGUIO CITY, Philippines — An unsolicited proposal to construct Baguio’s version of the Parañaque Integrated Terminal Exchange (PITX) was approved “with conditions” on Monday by the city council, moving the city closer to hosting a modern bus terminal that would serve travelers bound for Metro Manila as well as other destinations south of this mountain resort city.

Beating a 120-day deadline set by the Public-Private Partnership (PPP) Center that would have lapsed on June 5, 11 councilors, making up a majority, cleared the way for a P1.19-billion intermodal terminal at Baguio’s outskirts along its major bus artery, Marcos Highway.

Pitched in 2019 by PITX developer Megawide Construction Corp., the facility would be called the Baguio City Integrated Terminal (BCIT) and would serve as the official hub for all southbound buses and other public vehicles that enter or exit the city through Marcos Highway.

Swiss challenge

The council’s approval paves the way for the city government to open the PPP project to a Swiss challenge (or competitive bidding) in the coming weeks, said City Legal Officer Althea Alberto at the Monday council session.

Since this public service project originated from a private proponent without government prodding, the PPP law requires a Swiss challenge that would allow Megawide’s competitors to try to match its bid offer.

The intermodal terminal is the first of many unsolicited PPP projects to pass the scrutiny of the city government.

Because of a Baguio redevelopment initiative in 2019, the city government has processed private proposals, including an automated traffic program (called the smart urban mobility project), which drew flak last year when its proponent broached the idea of charging a congestion fee to reduce downtown traffic. Another important PPP initiative is a modern public market that became unpopular because it was pushed by a shopping mall giant.

Should it win the PPP contract, Megawide would require at least two years to build the transport terminal that may be operational by 2027 to accommodate up to 400 buses each day. Passengers, who would be lounging at airport-quality facilities there, would be charged a P30 terminal fee.

Revenue stream

The city government is assured a revenue stream totaling P2.2 billion when the developer’s 40-year lease ends in term, or a total revenue of P3.7 billion when Baguio acquires all of BCIT’s assets.

Megawide’s proposed terminal would rise on a 5-hectare leased area inside a 10-hectare lot at Barangay Dontogan near Baguio Dairy Farm. Overlooking the road leading to neighboring Tuba town in Benguet, this land is one of Baguio’s civil reservations, which is administered by the Department of Agriculture (DA). Baguio has been allowed to use the property since 2018 under a 50-year usufruct agreement with the DA.

The Baguio government is expected to pass an ordinance that would relocate all southbound bus lines to BCIT from Governor Pack Road in downtown Baguio. For decades, Governor Pack has served as a de facto bus depot and is a contributor to the slow traffic flow below Luneta Hill, where a shopping mall operates. Governor Pack is another government reservation, controlled by the Department of Environment and Natural Resources.

The city council was told that bus companies that put up their own private terminals, like Victory Liner, have agreed in principle to use BCIT.

But the council approval had some conditions, among them an assurance that the city would receive its annual revenue share regardless of how many passengers ride to and from BCIT. One of Megawide’s proposals in the negotiated terms of reference states it will not pay the city its share for the days when a “ridership count” does not reach a mutually agreed passenger threshold. /cb