Senior Inspector Raul Supiter, Midsayap police chief, said the suspect, Glen Camalis, was about to rig the bomb underneath a bench when civilians noticed him and sought help from policemen deployed two blocks away.
The responding policemen succeeded in immediately defusing the explosive, fashioned from a live M67 fragmentation grenade attached to an electrical circuit and a blasting device.
The foiled bombing was the fourth in Midsayap since January.
"It is fortunate that our people here are so vigilant. They are very cautious and watchful of their surroundings," Supiter said.
Local businessmen have confirmed that they have been receiving extortion letters from Camalis, who had even threatened to harm them if they refused to shell out money. John Unson