Cebu Mayor Halts Carbon Market Fees Until Oversight Committee Formed
Cebu City Mayor Nestor Archival declared on Monday, February 16, 2026, that Cebu2World Development Inc. (C2W), the developer managing the Carbon redevelopment project, is prohibited from collecting fees at the Carbon Public Market until an oversight committee mandated by their joint venture agreement is established and sanctioned by the City Council. During a press conference at his office, Archival emphasized that this committee, which must include representatives from the Cebu City Government, C2W, and market vendors, has not yet been constituted. He stated, "The fees are paid by the vendors, so it should be clearly stipulated who these people are," adding that fee collection cannot proceed without the committee's formation.
Legal and Procedural Hurdles Delay Committee Formation
Archival explained that the provisions for forming the oversight committee remain incomplete under the joint venture agreement approved by the council. The committee can only be formally organized after the council reviews and approves these provisions during a closed-door executive session scheduled for March 17. Until that time, the City Government retains sole authority to collect fees at Carbon. Archival also reassured vendors that there will be no increase in existing rental or market fees, maintaining stability for traders during this period.
Background of Vendor Protests and Legal Challenges
The council's review of the 2021 joint venture agreement between the City and C2W follows significant vendor protests and legal actions. Vendor groups organized a silent protest on February 5, expressing concerns that the agreement could lead to trader displacement, higher rents, and privatization of market operations. Additionally, Vice Mayor Tomas Osmeña filed a petition for certiorari before the Supreme Court on January 16, 2026, challenging the deal's legality and labeling it as "grossly disadvantageous" to the city.
Project Details and Historical Context
The 50-year public-private partnership, originally a P5.5-billion agreement signed on January 11, 2021, by the late mayor Edgardo Labella and Megawide Construction Corp., aims to modernize the Carbon Public Market complex. C2W, a Megawide subsidiary, assumed all obligations and rights under the agreement on May 27, 2021. A supplemental agreement signed on July 31, 2022, by then mayor Michael Rama and Megawide increased the total investment to P8 billion, guaranteeing the city an annual share of P50 million regardless of rental income. On October 18, 2023, the council approved City Ordinance 2719, amending the Market Code to align fee structures with the joint venture agreement.
Project Phases and Future Plans
Early phases of the project, including the Tourism Zone and Sto. Niño Park, were completed in late 2024. The main public market building is targeted for completion in December 2026, with priority given to relocating flower, native goods, and wet market vendors. Additional blocks and a multi-story parking facility are projected for completion between 2028 and 2030. Under the agreement, the City retains ownership of the land and regulatory authority, while the redevelopment includes features such as Freedom Park, a lifestyle village, a transport terminal, and a multi-level market building. C2W has upheld a "no vendor left behind" policy, with rental rates for registered vendors fixed at P8.50 per square meter until 2028 under the 2017 Market Code.
Mayor's Support for Legislative Review
Archival expressed his support for the council's review of the agreement, describing it as a legislative matter. He stated, "This is a legislative matter, so I am supporting it," highlighting the importance of due process and transparency in overseeing the redevelopment project. This stance aligns with efforts to address vendor concerns and ensure fair implementation of the joint venture.
