APRIL 24, 2015

NR # 3811B

Solons want privatization of Iloilo Citys central

and public markets probed
Lawmakers are calling for an inquiry on the privatization of Iloilo Citys public
markets under a public-private partnership arrangement.
In House Resolution 1965, Reps. Neri J. Colmenares and Carlos Isagani T. Zarate
(Party-list, Bayan Muna) said there is a need for the Committee on Local Government and
the Committee on Trade and Industry to look and assess the impact to the people of the
privatization of the Central market and other trading centers in the city.
According to Colmenares, the privatization may be a disservice to the people of
Iloilo City since it manifests the glaring neglect and non-commitment of the Iloilo City
Government to allocate sufficient funding in maintaining supposed-to-be public trading
centers, such as the Central Market, and thereby promote and protect locals from
establishing their own businesses.
Colmenares said Iloilo City Mayor Jed Patrick Mabilog had stated that no
privatization would happen, citing that a Term of Reference (TOR) has been drafted to
govern the redevelopment and revitalization of the Iloilo Central Market.
As stipulated in the TOR, it is the private sector partner/developer, and not Iloilo
City, who is solely responsible for the organizing, upgrading the skills of, and providing
appropriate locations as well as access to finance to affected small business owners and
operators.
This does not guarantee stallholders and vendors the security of tenancy in said
public market. This also does not guarantee stallholders, merchants and vendors that
private operators will respect their contract. Thus, the fate of these small stallholders and
market vendors will rest solely on the hands of the potential private partner, Colmenares
said.
The Iloilo City Council approved on March 07, 2012, Resolution No. 20130-234,
approving the documents relative to the implementation of the Iloilo City Business
District Revitalization Project under a Public-Private Partnership Arrangement.
The Council likewise approved Resolution 2014-136 or the approval of the
redevelopment project of the Iloilo City Central Market while the other public markets in
the citythe 1.7 hectare Iloilo Terminal Market, the 22.7-hectare Jaro Big Market, the
1.2-hectare Jaro Small Market and the 1-hectare Lapaz Public Marketare also up for
investment redevelopment.

Colmenares said the current status of the Public-Private Partnership Arrangement

between the City Government and potential partners should be looked into.
City Mayor Jed Mabilog contradicted himself, stating that he denied the term
privatization, but only a redevelopment of the public market in cooperation with SM
Prime Holdings, when in fact, the TOR explicitly states that the Iloilo City CBD is under a
Public-Private Partnership Arrangement, Colmenares said.
By that statement alone, City Mayor Mabilog already presupposes the commitment
of SM Prime Holdings to control almost all the operations of the central market despite
the fact that public bidding for the said project has not been opened yet, Colmenares said.
In pushing for the probe, Colmenares quoted Rex Donaco, president of the
Association of Stallholders and Transient Vendors of Central Market, who said the alleged
tie-up with SM Prime Holdings (even if there is no public bidding yet), if there is an
agreement in place already, lacks transparency because the public has no access to their
contract if there was any.
He said vendors are not only threatened by their possible eviction, but also by the
mere fact that the City Government is allowing what could be a possible unfair
competition by having SM Prime Holdings operate Hypermart.
Not only are these vendors deprived of security of occupancy, but should the
project fully materialized, they are undoubtedly put in a disadvantaged position by being
deprived of their livelihood, Colmenares said.
Colmenares said these vendors should have a larger involvement and their rights
protected.
They should not be put in an uncompromising situation whereby they are the ones
shouldering the neglect of their local government to protect and support the citys local
industry, he said. (30) mvip