How Baguio's New P1.18-Billion Transport Terminal Will Help Ease the Worsening Traffic Situation in the City

If you’ve ever been to Baguio City in recent years, especially during peak travel periods such as summer or over the Christmas holidays, you’d know that traffic jams have reached unbearably bad levels. Some say it’s almost as bad as rush hour traffic jams in Metro Manila.

The city is taking its boldest step yet to address the scourge of traffic.

On Wednesday (January 21), after more than half a decade of planning, negotiations, and regulatory hurdles, the Baguio city government and Megawide Construction Corporation formally signed the contract of lease for the Baguio City Integrated Terminal (BCIT) Project, marking the city’s first-ever infrastructure venture implemented under a public-private partnership (PPP) scheme. This comes a few months after the project was formally awarded to Megawide.

The signing, led by Mayor Benjamin Magalong and Megawide Chief Business Development Officer Jaime Raphael Feliciano, capped a process that began as early as 2020—years marked by feasibility studies, legal vetting, and intensive back-and-forth between the private proponent and both the executive and legislative branches of the local government. PPP Center Executive Director Undersecretary Rizza Blanco-Latorre, who attended the ceremony, acknowledged the amount of work involved, congratulating both parties for navigating what she described as a particularly demanding process.

“Para kaming dumaan sa butas ng karayom,” Feliciano said, characterizing the negotiations. But he stressed that the rigor paid off. “Because of that, we came up with a contract that is very fair.”

At its core, the BCIT project aims to change how people enter and move around Baguio. Planned for Barangay Dontogan along Marcos Highway, the terminal will serve as a centralized arrival point for provincial buses coming from outside the city. From there, passengers will transfer to other modes of transport—modern jeepneys, traditional jeepneys, UV Express vehicles, and taxis—to reach destinations within Baguio.

For travelers, the benefits are immediate and practical. Instead of enduring long rides into the congested central business district (CBD), passengers will disembark at a purpose-built terminal designed for comfort and efficiency. The facility will feature spacious waiting areas, clearly designated boarding gates, digital passenger information displays, ticket booths, customer service desks, and baggage trolleys. Plans also include free Wi-Fi, food and retail outlets, and park-and-ride options.

Safety and accessibility are central to the terminal’s design. The project includes 24-hour security systems, first-aid stations, lactation rooms for nursing mothers, elevators and ramps for persons with disabilities, and dedicated spaces for visually impaired massage services. Standby police units will also be stationed within the terminal.

For Baguio residents, the larger promise lies in decongesting the city center. By consolidating provincial buses at the outskirts, the city hopes to ease traffic volume in the CBD—an issue that worsens during peak tourist seasons and long weekends. Vice Mayor Faustino Olowan, speaking on behalf of Mayor Magalong, acknowledged that while the contract signing is a major milestone, more work lies ahead, particularly in preparing the site before Megawide can begin construction.

Megawide, for its part, has committed to delivering what it calls a “world-class intermodal terminal,” drawing on its experience with large-scale PPP projects such as the Parañaque Integrated Terminal Exchange (PITX) and Clark International Airport. Beyond passenger amenities, the terminal is also designed to improve operations for transport providers. Features include dedicated staging areas to eliminate dead runs, shared ticketing facilities, driver lounges, minor repair and cleaning areas, and EV charging stations—reducing operating costs and overhead expenses.

According to a news release, the project is also expected to benefit the city’s coffers. Over the 40-year lease period, Baguio stands to gain from lease payments, revenue-sharing arrangements, real property taxes, and increased business activity generated by the terminal. At the end of the lease, all project-related assets will be transferred to the city government.

With an estimated cost of P1.186 billion, the BCIT project is one of Baguio’s biggest-ticket infrastructure initiatives. Megawide has also pledged to prioritize the hiring of city residents during both the construction and operational phases, adding an employment component to its long-term impact.

After years of painstaking negotiations, the BCIT project now shifts from planning to execution. If delivered as envisioned, it could redefine how people experience arrival in the country’s Summer Capital—less chaotic, more efficient, and finally aligned with the scale of Baguio’s role as a major urban and tourism hub.