Vendors to Carbon market developer: What misinformation?

Local

FOR vendors opposing the Carbon Public Market redevelopment, the issue has never been about rumors or fear of change, but about what is written in black and white.

The Carbonhanong Alyansa on Monday, Feb. 9, rejected claims that resistance to the multi-billion-peso project is fueled by “misinformation.”

The group said their objections stem from specific provisions of the joint venture agreement (JVA) governing the redevelopment of Cebu’s oldest public market.

In a Feb. 9 statement, the vendor coalition said the JVA between the Cebu City Government and Cebu2World Development Inc. gives the private partner extensive control over market operations and revenues for as long as 50 years, extendible by another 25, despite repeated assurances that Carbon remains publicly owned.

“Even if Carbon is public in name, the more important question is control,” the group said.

According to the alliance, the JVA authorizes the private sector partner to manage daily operations, collect revenues and other income, impose penalties, and influence stall assignment and lessee nomination, subject to implementing ordinances and agreements.

They pointed to provisions stating that the private partner is entitled to collect all revenues from the project site, with the city guaranteed a fixed ₱50-million annual net income. Any collections beyond that amount, the group said, must be remitted to the private partner within 30 days, as provided in a supplemental memorandum of agreement.

“This is not misinformation. These are clauses,” the alliance stressed.

The group also challenged assurances that vendor rental rates will remain at ₱8.50 per square meter per day until 2028, saying such claims must be backed by clear and enforceable provisions.

They asked whether the supposed freeze applies only to base rent or also covers additional charges such as utilities, penalties, entrance fees, and enforcement costs.

“If it’s true, show the exact controlling clause,” the statement said.

The alliance took particular issue with presentations comparing current vendor payments with projected JVA rates, calling the comparisons misleading.

They said current figures often combine mandatory fees with optional or variable add-ons, such as multiple daily charges, then compare them with projected JVA rates whose inclusions are unclear.

“That is not a fair comparison,” the group said, likening it to “comparing an apple to a fruit salad.”

While acknowledging that fee increases are not automatic, the alliance said the JVA allows for adjustments tied to operating costs under a specific annex.

If the city fails to implement those adjustments, the agreement provides compensation mechanisms to the private partner, including reduced city share, extension of the concession term, or cash payments.

They warned that higher operating costs, stricter enforcement, and expanded penalties could result in economic displacement, even without physical demolition.

“Displacement does not only mean tearing down stalls,” the group said. “It happens when small vendors can no longer afford to stay.”

The vendor response follows statements from Cebu2World Development Inc., which earlier dismissed opposition to the project as rooted in wrong information.

Company president and CEO Manuel Louie Ferrer said the JVA is lawful, transparent, and beneficial to the city and vendors.

“Those documents are public property, anyone can check,” Ferrer said during a recent briefing. “We believe we went through the right process.”

Ferrer said rental rates in the new main building will follow the 2017 Market Code, with fees remaining at ₱8.50 per square meter until 2028.

“If the question is about the future, we presented the current rates, what vendors are paying now versus what they will pay when they move. Grabe ka layo,” he said.

He added that Cebu2World cannot arbitrarily fix or freeze rates beyond what is allowed under the concession agreement.

Opposition to the redevelopment has escalated to the Supreme Court, where Vice Mayor Tomas Osmeña has filed a petition seeking to halt the project.

The petition alleges that the JVA is “grossly disadvantageous” to the city and raises questions on zoning, land ownership, financial losses, and transparency.

Cebu2World said the issue ultimately rests with the courts.

“Tubagon lang namo if naa na ang desisyon,” Ferrer said. “Ready mi because transparent man ta. Wala tay gitago.”(TGP)