CEBU City will have to wait another year for the construction of the P4.8 billion waste-to-energy (WTE) facility to start.
New Sky Energy Philippines Inc. had asked for a one-year extension, citing the need for additional time to acquire necessary permits, licenses, studies, and related contracts.
Mayor Michael Rama, in his letter to New Sky Energy dated Sept. 21, 2023, granted the firm’s request.
The City Government granted the notice of award to New Sky Energy on Sept. 22, 2022, the same day the two entities sealed the joint venture agreement (JVA), which was notarized last Nov. 21.
City Councilor Joel Garganera, committee on environment chairman, said it is a challenge for New Sky Energy to get permits since it will not only be dealing with the Department of Environment and Natural Resources, but also with the Department of Energy.
Garganera, in a text message to SunStar Cebu on Sunday, October 8, said New Sky Energy already found a site to build the facility, and was given the green light by the Solid Waste Management Board to proceed in acquiring the permits, but he did not disclose the location.
With this setback, Garganera urged residents to focus on reducing their wastes and to comply with the waste diversion programs initiated by the government.
The New Sky Energy, in a letter to Rama dated Sept. 4, wrote that the team encountered unanticipated challenges in the pre-construction stage, which resulted in the need to recalibrate the original timeline.
“The in-depth planning, rigorous compliance with legal and environmental standards, and coordination with various stakeholders involved in the project have been proven to be more time-consuming than initially projected. These unforeseen challenges have inevitably impacted our ability to adhere to the original schedule,” a portion of the letter states.
Garganera said that since the WTE facility will be utilizing a renewable energy equipment, most of the policies that New Sky Energy will be complying with are relatively new.
In previous articles, New Sky Energy had one year to acquire the land and secure all the permits for the project. The company would then spend another two years on construction, thus making the WTE facility operational in 2025.
Garganera said the WTE facility can help reduce the volume of garbage in the city.
“It would really help us greatly once it’s operational,” he said.
The facility can accommodate 800 tons of garbage per day and use it to generate electricity for 40,000 households.
The WTE facility will burn the collected garbage to produce pressurized steam that will be used to power electric generators.
Under the agreement, the City will pay the company a tipping fee of P1,000 per ton of waste in the first three years of operation; P1,150 per ton from the fourth to the sixth year; and P1,300 per ton from the seventh to the ninth year.
City Administrator Collin Rosell, in previous reports, said the City could earn up to P24 million annually as its share of the proceeds from the electrical power that would be generated.