MOA on waste-to-energy approved on 1st reading-A A +A
Wednesday, August 28, 2013
THE City Council of Davao approved on the first reading on Tuesday the proposed memorandum of agreement (MOA) between the City Government and a foreign firm for the waste-to-energy project in the metropolis.
To realize its intention of implementing a series of projects to enable better solid waste management in an environmentally friendly manner, the City Government is eyeing to partner with Sinova Holdings Ltd., a company based in British Virgin Islands.
Based on the proposed MOA, the developers will provide the municipal solid waste (MSW) and biomass waste receiving and storage facility; material recovery facility; power plant with generation capacity of up to 24 megawatts (MW); warehouse of required capacity for storing the by-products.
Also, a waste collection system including handling, transport, processing recycling or deposal and monitoring of waste materials; construction of internal roads, drainage and other site infrastructure; capital investment and operating capital for the facility for 25 years; and repayment of debt for the construction of the sanitary landfill.
"The plant will not charge a tipping or disposal fee to Davao City, but will charge a disposal fee on a per metric ton basis in an amount to be agreed from commercial and industrial customers for processing the MSW delivered to the WTE facility, which shall be documented in the waste supply agreement to be negotiated by the parties," the proposed MOA read.
For its part, Davao City will enter into a 25-year waste supply agreement for a minimum of 400 ton per day MSW (un-segregated mixed waste comprising of organic, inorganic material with a heating value of at least 3,500 Btu/lb, with a content not to exceed 50 percent and no hazardous waste) subject to further verification.
The proposed MOA was drafted sometime in June 2011.
The Sinova was competing with a German-based firm, Herhof, which had a proposed $1 billion waste-to-energy project.
Sinova was favored by Solid Waste Management Board over the former’s proposal.
But, Herhof withdrew later on its plan of investing such a facility in the city.
Meanwhile, former City Environment and Natural Resources Office (Cenro) officer-in-charge lawyer Joseph Felizarta earlier said Sinova is one of the two foreign firms that intend to put up a waste-to-energy facility in the city. The other firm is Global Green Inc. (GGI).
He said by the time the WTEs start operating, the two firms will be requiring a total of 480 tons of garbage -- 400 tons by Sinova and 80 tons by GGI -- to process into biomass a day.
Felizarta said the volume of garbage collection of Cenro will average at 433 tons a day in the city this year, a little higher compared in 2012 at 411 tons.
After its approval under first reading yesterday, the item on proposed MOA between the City Government and Sinova was referred to committees on rules, privileges, laws and ordinances, and energy for committee hearing.
Published in the Sun.Star Davao newspaper on August 28, 2013.