First waste-to-energy project to rise in Iloilo

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Wednesday, February 5, 2014


A MEMORANDUM of agreement (MOA) was forged on Wednesday between the City Government of Iloilo and a Korean firm for the establishment of the first solid waste-to-energy project within the Calajunan dumpsite in Iloilo City.

The City Council passed Resolution No. 2014-163 on Tuesday, February 4, 2014 “authorizing Iloilo City Mayor Jed Patrick Mabilog to sign for and in behalf of the City Government of Iloilo, the joint venture agreement for solid waste-to-energy project to be entered into by and between the City Government and Dream Eng. Company Ltd.”

Mabilog and Korean firm Dream Eng. Company Ltd. Chairman Youn Pyo Hong led the signing of the agreement for an expected power generation of more than 6 megawatts to augment the power supply in the city.

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One megawatt (MW) could be used to light up the industrial complex while 5 megawatts could be sold to the Panay Electric Company (Peco) under a power purchase agreement (PPA) with a power rate cost to be determined by the Energy Regulatory Commission (ERC).

Mabilog is optimistic that the renewable energy project will also help address the garbage problem in the city.

The construction will run for almost two years.

The city dumpsite has earmarked 3.3 hectares for the sanitary landfill that is more than 1 hectare for the industrial energy complex and the remaining lot for the dumping of fresh garbage, administration offices, material recovery facility, and equipment pool.

Mabilog said the contract for the solid waste-to-energy plant will run for 20 years renewable with the city getting a 5-percent share of the gross income or roughly $20,000 income every month.

The city is collecting some 300 metric tons of garbage every day and 250 metric tons are earmarked as fuel to the project. Not all garbage can be used as fuel for the energy plant such as bottles and other metal materials.

The garbage and the remaining 50 metric tons (MT) garbage collection every day will be used by scavengers and waste pickers for their livelihood. Some 300 waste pickers were organized through a United Calajunan Livelihood Association (Ucla) and the waste pickers produced house decors and fancy jewelries made out of garbage papers and magazines.

Youn Pyo Hong said they prefer local people from Iloilo City to work in the energy industrial complex and may accept local engineer students to be trained in Korea. Dream Eng. posts a track record in Korea for having constructed four industrial units already using solid waste.

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