Lawyer Edmund Lao, counsel for the Carbohanong Alyansa, stated that their court challenge targets the legality of the Joint Venture Agreement (JVA) for the Carbon Public Market project rather than the redevelopment itself. The pre-trial brief submitted before the Regional Trial Court on June 27, 2026, identified at least eight major issues to be examined during the trial.
Key Legal Questions
Among the primary issues is whether portions of the project site—including Freedom Park, Warwick Barracks, Units 1, 2 and 3, the area extending to the City Treasurer’s Office, and the 7.4-hectare waterfront reclaimed area—form part of the public domain and can legally be subjected to a commercial joint venture. Lao emphasized that the alliance questions the legal authority of the Cebu City Government to subject these public properties to such an agreement.
“It is not the project that we are questioning. It is the joint venture agreement,” he said. He maintained that the Carbon Public Market plays a vital role not only for Cebu City but for the entire province and region, serving as a major source of affordable food and livelihood.
Corporate Authority and Procedural Fairness
The petition also questions whether Megawide Construction Corp., the private partner, has the corporate authority under its Articles of Incorporation to undertake not only construction but also financing, operation, commissioning, and long-term management of the project. Additionally, Lao questioned whether the City complied with procedures required under Cebu City’s Joint Venture Ordinance and other applicable laws when it approved Megawide’s unsolicited proposal between 2019 and 2021.
Among the procedural concerns cited were the conduct of the comparative challenge, including whether the 10-day period given to potential challengers to submit competing proposals was reasonable. The petition likewise challenges the validity of the supplemental agreement executed in 2022 and asks the court to determine whether the JVA is financially disadvantageous to the City Government.
Vendor Unity and Call for Council Review
Beyond the legal issues, Lao said vendor organizations opposing the JVA have become more united over the past year, particularly during the 2025 elections, when different groups set aside political affiliations to campaign for the protection of Carbon Market. Lao urged members of the City Council to review the joint venture agreement, noting that many councilors were not part of the body when the measure was approved.
Lao emphasized that the case does not seek to stop the redevelopment of Carbon Public Market itself but specifically seeks the cancellation or abrogation of the joint venture agreement. While acknowledging that the legal battle could take time, Lao said the alliance remains optimistic that the courts will ultimately resolve the case based on law and justice.
