The legal battle over the redevelopment of Carbon Public Market is expected to focus on several key issues, including the legality of the Joint Venture Agreement (JVA), ownership of the project site, and whether the agreement damages the financial interests of the Cebu City Government.
This was according to Atty. Edmund Lao, legal counsel for the Carbohanong Alyansa, who said on Saturday, June 27, 2026, that their pre-trial brief submitted to the Regional Trial Court outlines at least eight major issues they want to address during the trial.
Key Issues in the Case
One of the primary issues, according to Lao, is whether certain parts of the project site—including Freedom Park, Warwick Barracks, Units 1, 2, and 3, the area up to the City Treasurer's Office, and the 7.4-hectare reclaimed waterfront area—are part of the public domain and can be subjected to a commercial joint venture.
He said the petition also questions whether the Cebu City Government has the legal authority to enter into a contract covering these public properties.
Megawide's Corporate Authority Questioned
Another issue raised by the petitioners is whether Megawide Construction Corp., the private partner in the redevelopment project, has the corporate authority under its Articles of Incorporation not only to build the project but also to fund, operate, commission, and manage it over the long term.
Lao also asked whether the city followed the procedures required under Cebu City's Joint Venture Ordinance and other relevant laws when it approved Megawide's unsolicited proposal between 2019 and 2021.
Comparative Challenge and Supplemental Agreement
Among their concerns is the comparative challenge process, particularly whether the 10 days given to other potential proponents to submit a competitive proposal was reasonable.
“The question is whether 10 days was sufficient for other proponents to evaluate the project and prepare a competitive proposal,” Lao said.
The petition also challenges the validity of the supplemental agreement signed in 2022 and asks the court to rule on whether the JVA harms the financial interests of the city government.
