Cebu City Mayor-elect Nestor Archival has proposed to renegotiate the existing contract with Megawide Construction Corp. regarding the renovation of the Carbon Public Market, a move aimed at addressing concerns from over 4,000 local vendors.

During a news forum on May 20, 2025, Archival described the current 2021 Joint Venture Agreement (JVA) between the Cebu City Government and Megawide as one-sided and detrimental to the vendor community.

The revitalization project has faced significant challenges since its inception, particularly due to pushback from market vendors and local associations who are concerned about potential rental increases and the threat of displacing long-established vendors.

Criticism has also come from several members of the City Council, including Archival during his tenure as councilor.

Despite recognizing the validity of the contract, which was established under previous administrations, Archival expressed intentions to engage with representatives from Megawide to initiate talks aimed at renegotiating specific terms of the agreement.

He plans to present the renegotiation proposal to the newly elected council for further action.

A critical aspect Archival highlighted was the recent approval of increased tariff rates affecting vendors at the public market.

Vendors, under the terms of the existing contract, are required to pay fees each time they enter the market area.

Archival explained that the limited market space means not all vendors can fit in simultaneously, forcing some to seek alternative venues to sell their goods.

He noted that the market conditions require vendors to incur expenses each time they set up, potentially diminishing their earning capacity.

Under the approved tariff structure, prices in the Carbon Public Market are projected to rise.

Archival specifically mentioned that the cost of fish has escalated from P30 to P300 per bale due to the new rates.

He cautioned that without renegotiation, the pricing of goods in Carbon Public Market could exceed those in smaller public markets throughout Cebu City.

On December 11, 2024, in the midst of ongoing concerns regarding the project, vendors organized a protest rally outside City Hall opposing the renovations.

Following this, Archival proposed a resolution aimed at resolving earlier council approvals related to the zoning variance application of Cebu2World Development Inc. The firm had sought to alter the land classification of Warwick Barracks to facilitate the redevelopment.

Cebu2World Development Inc., a subsidiary of Megawide, aims to modernize the Carbon Public Market in three phases, which include the renovation of Carbon Market Units 1 and 2, Freedom Park, and other designated areas as part of the comprehensive development plan.

On December 12, Lydwena Eco, deputy general manager of Cebu2World, reaffirmed plans to position the Carbon Public Market as a central food and tourism hub by 2030. Eco assured vendors that rental rates and charges for the renovated market would adhere to the previously enacted Market Code of the Cebu City Government, which governs vendor fees and rentals.

Any changes to this fee structure would require council approval, ensuring that C2W cannot impose charges exceeding those established in the Market Code.

The overall redevelopment initiative for the Carbon Public Market represents a substantial urban renewal effort within Cebu City, with the total projected investment amounting to P5.5 billion.

Megawide is set to complete Block 2 of the project, for which it secured a P1.1 billion contract, by early 2026. This block is part of a broader strategy to enhance the market's attractiveness, alongside attractions such as The Barracks hawker center and Freedom Park, with the objective of fostering a vibrant commercial and cultural environment.