Saavedra-led Megawide Construction Corp. has secured the ₱1.2 billion contract to build the Baguio City Integrated Terminal (BCIT), which aims to ease commuting and reduce traffic in the country’s summer capital.

In a disclosure to the Philippine Stock Exchange (PSE), Megawide said that it received a notice of award from the local government of Baguio City on Oct. 17, authorizing it to proceed with the development of the BCIT project.

Baguio City’s Public-Private Partnership Pre-Qualification Bids and Awards Committee (PBAC) recommended to the city government to award the project to Megawide after receiving no other proposals during the three-month comparative challenge process.

Megawide, builder of the Paranaque Integrated Terminal Exchange (PITX), first submitted an unsolicited proposal for the BCIT in 2019.

Based on the PPP process, the company must first fulfill the requirements outlined in the notice to award before it can commence construction work on the project.

Megawide’s contract for the BICT project will be under a 40-year lease agreement with the Baguio City government.

Baguio City’s first integrated transport terminal, to be constructed in Barangay Dontogan, is envisioned as the main hub for provincial buses entering the city.

Relocating buses to the city’s outskirts is expected to lessen traffic in the city, particularly in the central business district, according to Baguio City’s public information office (PIO).

BICT will initially target seven southbound routes, including La Union, Pangasinan, Tarlac, Pampanga, Bulacan, Metro Manila, and Cavite.

Apart from buses, the terminal will connect commuters to various transportation modes going into the city such as taxis and jeepneys, similar to PITX.

To accommodate commuters, the BICT will feature dedicated loading and unloading bays for provincial and in-city transport, public parking for park-and-ride services, and designated green spaces.

The passenger area will comprise commercial establishments, which are seen to attract entrepreneurs from Baguio and nearby municipalities, further boosting economic activity in the wealthiest city outside Metro Manila.

Megawide also confirmed that its subsidiary, Megawide One Mobility Corp., signed a joint venture agreement (JVA) with the local government of Carmona, Cavite, for the development of South Luzon Integrated Terminal Exchange (SLITX).

With an estimated project cost of ₱800 million, the SLITX project will be under a 30-year agreement.

The terminal is designed to accommodate 25,000 passengers daily, serving both long-haul and daily commuters.

SLITX will allow passengers from Southern Luzon to directly access the central business districts in Metro Manila, as well as Ninoy Aquino International Airport (NAIA).

Once constructed, Megawide's Head of Business Development, Jaime Feliciano, said that both BICT and SLITC will provide fresh recurring revenue streams for the company.

Megawide is expected to receive an annual recurring net income contribution of between ₱300 million and ₱400 million from the terminals as they reach full operational capacity within three years.

"Landports, such as our PITX, BCIT, and SLITX, as well as the ongoing Cavite BRT (bus rapid transit) system, are part of the grand objective to provide the public with safe, secure, and efficient public transport while improving connectivity and enhancing mobility across key cities, initially in Luzon,” said Feliciano.

In February of this year, Megawide was awarded the ₱1.87 billion contract to build the Cavite BRT project.