Waste project still at bid stage

Saturday, February 11, 2012

AFTER a failure of bidding in managing Cebu’s solid waste was declared in 44 towns and seven cities last year, one of the bidders submitted last Thursday an unsolicited proposal to develop an integrated waste-to-energy facility project.

Three bidders—Sinova Capital, Green Energy Solutions and Quantum International—submitted last August their bids on the project, which would require the winning bidder to process roughly 1,711 tons of garbage daily.

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But in a resolution, the Economic Enterprise Council (EEC), chaired by Gov. Gwendolyn Garcia, declared a failure of bidding last Sept. 22 and ordered to re-bid the project.

“The bids were found to be non-responsive and disadvantageous to the interest of the Provincial Government,” the EEC stated as reason for declaring a failure of bidding.

Last Thursday, Gener Dungo, the chief executive officer of Sinova, submitted the company’s unsolicited proposal in a meeting attended by officials of Capitol, Energy Regulatory Commission, and Department of Energy.

The details of the “new” proposal, however, were not disclosed.

Study

Capitol is now studying the unsolicited proposal, as EEC member Adolfo Quiroga waits for another bidding schedule.

EEC member Rory Jon Sepulveda explained that the EEC had reservations about the bids, and the members have individual findings on each of the three bidders, prompting the council to declare a failure of bidding.

“Wa ta kabalo kung acceptable ba sa environment laws kining ilang i-introduce nga new technology (We are not sure if the new technology they are introducing are acceptable to environmental laws),” Sepulveda said.

The council also wanted to know if the waste-to-energy technology introduced by the bidders is true and if their rates are competitive, since many private enterprises are engaged in the business.

For example, Quantum International’s proposal, worth $450 million, states it needs a minimum of 2,000 tons of garbage daily to generate 2,000 megawatts, or 10 times more power than the 200-mw coal-fired power plant generated by Kepco in Naga City.

Sinova, in its proposal, promised to generate “carbon credits,” the financial benefits
discussed in the Kyoto Protocol, and said it would share this with Capitol.

The Protocol reaffirms the principle that developed countries have to pay billions of dollars and supply technology to other countries for climate-related studies and projects.

Collection

The council also wants to know who will collect and transport the garbage, since the bidding companies only discussed how they will process the waste materials.

“Kinsa may mohakot ug unsaon pag hakot ang basura padung sa (Who will collect and how will they transport the waste to the) processing site,” said Sepulveda, adding that the council wants all these items must be specified.

The technical working group wanted all these concerns addressed, as it recommended to the EEC to declare a failure of bidding.

The EEC is composed of 13 members: six elected officials, five department heads and two consultants. Vice Gov. Agnes Magpale sits as vice chairperson.

Initially 11 firms responded to the notice of bid that Capitol earlier published, but only three prospective bidders submitted their bids last July 2011.

It was clear in the invitation to bid that Capitol assumes no responsibility to compensate or indemnify bidders for any expense incurred in the preparation of their bids and may declare failure of bidding or refuse to award the contract.