Cebu City Council Reviews Carbon Market JVA Financial Terms After COA Audit Flags Revenue Concerns

The Cebu City Council has ordered a review of the joint venture agreement between the city and Megawide Construction for the Carbon Public Market redevelopment. The move follows a Commission on Audit report showing the city guaranteed only 50 million pesos annually while the market averaged over 80 million in collections from 2021 to 2025. COA also found no documented financial evaluation or valuation of city assets was done before the deal was signed. The council created a special review committee with technical experts and vendor representatives to examine the revenue sharing formula and whether the city is getting fair compensation. Councilor Sisinio Andales cited provisions giving the private partner broad authority to manage assets, enter leases, and bring in other investors without clear city oversight. The review aims to correct what some councilors call disadvantageous terms. The audit also flagged 5 million pesos in unpaid stallholder fees and missing lease contracts since 2017. The council wants the city treasurer and markets authority to enforce collections and lease renewals. The outcome could reshape how Cebu City handles public asset partnerships going forward.