Cebu City proposes 'pundo' system to pay residents for plastic waste

City eyes ‘pundo’ for plastic waste
Cebu City HallPhoto by Yans Baroy
Published on

CEBU City is looking back at an old tradition to solve a modern garbage problem. Mayor Nestor Archival announced on Monday, March 9, 2026, that the city is developing a "buyback" system to encourage residents to recycle plastic bottles and sachets instead of throwing them away.

The plan is inspired by the classic "pundo" system once used for glass soft drink bottles, where customers receive money back when they return the container.

How the buyback works

Under the proposed law, a small deposit of 25 to 50 centavos would be added to the price of items like bottled water. When you are finished with the drink, you can take the empty bottle to a designated collection point—such as a gas station or a local business—to get your money back.

The system isn't just for bottles; it also targets single-use shampoo and detergent sachets, which are some of the biggest sources of pollution in the city.

"Every time you use plastic, you will not easily throw it away because there is a buyback option," Mayor Archival explained.

Turning trash into construction tools

The city is also finding new ways to get rid of the plastic it collects. Officials are finalizing a deal with a cement company that has offered to take the city’s plastic waste—especially those hard-to-recycle sachets—to use in their manufacturing operations.

Why this matters now

Cebu City is facing a major trash crisis. In the past, the city spent P500 million a year on garbage. Now, that cost could jump to P2 billion because of rising fuel prices and the long 61-kilometer trip required to haul trash to a disposal facility in Aloguinsan.

To save money, the city is trying to "divert" or intercept waste before it reaches the landfill:

  • Food Waste: About 15 tons of biodegradable waste from Carbon Market are now processed daily.

  • New Facilities: A shredding facility at the South Road Properties (SRP) is now processing organic waste, which makes up 60 percentof the city's total trash.

The "pundo" ordinance is currently being reviewed. Once the final details are polished, it will be presented to the Cebu City Council for approval. If passed, it could change how every Cebuano handles their daily trash.

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