A proposed ordinance seeks to establish policy guidelines for joint venture and lease agreements involving city-owned assets to ensure that purely commercial arrangements with private entities are undertaken through transparent, competitive, and accountable processes.
The proposed measure applies only to purely commercial joint venture and lease agreements that do not involve public infrastructure or the delivery of public development services.
Among the projects covered are commercial retail establishments, office buildings, paid parking facilities, entertainment and recreational centers, industrial and warehouse spaces, condominium developments, non-socialized housing, and other real estate developments on city-owned properties.
It also provides that the city shall not impose public user fees on end users under such arrangements and that projects must conform to the city’s Comprehensive Land Use Plan, environmental ordinances, heritage conservation policies, and other applicable laws.
The ordinance seeks to maximize the value of city-owned properties, encourage private sector investment, and generate additional revenues for the city’s programs and services while ensuring that all agreements are entered into through open, fair, objective, transparent, and competitive procedures.
The proposal directs the City Mayor to create a Selection Committee for every joint venture or lease project. The committee shall be responsible for preparing bid documents, conducting the selection process, evaluating technical and financial proposals, resolving disputes, and recommending the award of contracts.
The Selection Committee shall be chaired by the City Administrator or another designated city official and shall include representatives from the Baguio City Council, the City Legal Office, the City Budget Office, and technical experts. A representative from the Commission on Audit may serve as a non-voting observer.
The proposed ordinance provides two modes of selecting a private partner: competitive selection which shall be the primary method, and negotiated mode, which may only be used for accepted unsolicited proposals or after two consecutive failures of competitive bidding.
Detailed timelines are prescribed for every stage of the competitive selection process, from the publication of invitations and eligibility screening to proposal evaluation, approval, and contract execution.
Prospective private partners must satisfy legal, technical, and financial qualifications, including compliance with constitutional ownership requirements and proof of experience in similar projects. They must also demonstrate financial capability through net worth, bank deposits, or certifications from qualified financial institutions. Consortiums are likewise allowed to participate subject to specified requirements.
The proposal further requires technical and financial proposals to be submitted separately and evaluated based on prescribed criteria. Performance securities, proposal securities, and standard contract provisions, including profit-sharing arrangements, insurance, warranties, dispute resolution, anti-corruption commitments, and the reversion of all improvements to the city upon expiration or termination of the agreement, are likewise required.
For negotiated projects arising from unsolicited proposals, the ordinance prescribes a competitive challenge process. After negotiations and the conferment of Original Proponent Status, other qualified private entities shall be invited to submit comparative financial proposals. The original proponent shall have the right to match a superior offer within the prescribed period; otherwise, the contract shall be awarded to the challenger offering the most advantageous proposal.
The proposed ordinance establishes an appeals mechanism allowing aggrieved proponents to seek reconsideration before the Selection Committee and subsequently appeal to the Baguio City Council.
The measure also requires revenues generated from joint ventures and lease agreements to accrue to the city’s General Fund for appropriation under the annual budget and the City Development Investment Program. The City Mayor shall submit semi-annual reports to the City Council on the status and revenues of all active agreements.
Before any invitation for proposals is published, the city must conduct at least one public consultation in affected or adjacent barangays, with the results forming part of the official selection records.
The proposed ordinance was approved on first reading by the Baguio City Council on June 22, 2026 and was subsequently referred to the Committee on Laws and Governance for review. – Baguio City – Sangguniang Panlungsod
