‘UNDER WARRANTY’ Defects surface at redeveloped Iloilo Central Market

By Rjay Zuriaga Castor

What was meant to be a fresh start for Iloilo Central Market was marred by early structural defects after vendors and consumers reported water leaks, cracked tiles and drainage problems that disrupted business operations at the start of 2026.

On Jan. 2, during heavy rainfall, cracked and dislodged floor tiles were observed near the Aldeguer Street entrance after a drainage line reportedly burst, allowing water to seep into stalls selling native products.

Inside the market, vendors in the eatery and rice sections also reported persistent leaks from the roof and water lines, with water dripping through pipes and seeping into lower floors.

In a statement issued Jan. 3, the Iloilo City government said the damage was caused by a large volume of rainwater entering the drainage system.

“Initial assessment identified a clogged drainage line that contributed to the damage of several floor tiles,” the statement said.

The city government said the contractor engaged by SM Prime Holdings Inc. (SMPHI), the city’s private partner in redeveloping the market, pledged a 100 percent refund to affected vendors based on initial findings, and that damaged tiles have already been replaced.

“Plans to declog and improve the drainage system are already underway,” the statement added.

The redevelopment of the Central Market, including the nearby Terminal Market, is being undertaken through a public-private partnership with SMPHI, involving an investment of nearly PHP 3 billion under a 25-year lease agreement.

The market had a soft opening Oct. 30, followed by full operations, including its mall wings, on Nov. 28.

Local Economic Enterprise Office head Maricel Mabaquiao said the market remains under warranty because some portions of the project are still unfinished.

Under the lease agreement obtained by Daily Guardian from the city government’s website, SMPHI is required to repair, restore or reconstruct any damaged portion of the buildings or improvements at its own expense.

For partial damage, repairs must be completed within six months, while major damage that renders any portion untenantable, or unfit for occupancy, must be addressed within 12 months.

The agreement states that these timelines apply only if the damage is not attributable to SMPHI, its officers, employees, agents or representatives.

Such damage is also not considered grounds for termination of the lease agreement.

The city government and SMPHI are scheduled to conduct a joint inspection and full site assessment on Monday, Jan. 5, to further evaluate the extent of the reported damage.