A safeguard for vendor equity in products has been scrapped in the SM public market deal.
A provision to secure the livelihood of vendors in the SM Public-Private Partnership (PPP) deal for the redevelopment of the Baguio City Public Market has been taken out of the final draft of the lease contract, despite assurances in the past that a non-compete clause will protect small entrepreneurs.
According to documents published by the local government, City Legal Officer Althea Alberto confirmed that the final draft of the Parameters, Terms, and Conditions (PTC) does not contain any non-compete clause, a provision that is supposed to prohibit the proponent from establishing businesses that directly compete with market vendors, such as a grocery or supermarket.
A non-compete clause assures vendors that SM will not sell products which will be in direct competition with existing wares already in the public market.
However, City Budget Officer, Atty. Leticia Clemente, likewise confirmed that a provision for an SM SaveMore, a grocery component of the mall chain, will operate within the market once redeveloped.
SM SaveMore offers a wide range of retail and wholesale products, aside from fresh vegetables, and a meat, fish, and seafood section.
Councilor Paolo Salvosa, who heads the Committee on Laws tasked to oversee the consultations for the anticipated SM market deal, said from the onset, a provision of a non-compete clause was assured to be put into the contract of lease.
“Nasabi sa amin dati na may non-compete pero ngayong wala, critical issue ‘yan for the protection of the vendors kasi sila ang pinaka-apektado ng PPP na ito,” he said.
The city council now has less than two months to act on the Public Market Redevelopment Project with the review period starting September 11 and ending January 10, 2026, completing a mandatory 120 days. Over the weekend, market stakeholders, artists, business community representatives, residents, and advocates against the Baguio Public Market privatization and “mallification” gathered at the fish section for the launch of the Ili Press zine, “Naduma Duma, Istorya Para ti Palengke,” which compiles close to 50 stories, poems, and essays of the local market. A series of gatherings and exhibitions is also lined up, in a bid to sway the city council to scrap the SM PPP market deal.
Salvosa said, “Sa akin, dapat may non-compete clause para sa protection ng vendors, dapat ay may non-compete clause para ‘di nakikipag laban ang vendors sa naka laking korporasyon.”
Design features and amenities in the SM proposal include: a public plaza atop the parking structure intended for public use and events with no revenue to the proponent; a roof garden, further enhancing public space; improved ventilation, sanitation, and accessibility through wider corridors and modern facilities; and installation of a Sewage Treatment Plant (STP), Materials Recovery Facility (MRF), solar integration, and rainwater harvesting system. City Budget Officer Leticia Clemente clarified that all of these facilities form part of the total project cost under the PPP arrangement. This means they are included in the project’s capital investment and will be constructed by the proponent without any reimbursement from the City.
Salvosa assured the SM market deal is not a done deal: “Hindi ito done deal, negosasyon ito, pag aaralan ng city council. If the city council asks for the non-compete [clause], but SM does not agree, then it’s no deal and back to the drawing board tayo.” Maria Elena Catajan with reports from the Baguio City – Sangguniang Panlungsod
