Mandaue City acquired three new 25-cubic-meter capacity dump trucks for P6.99 million each, following a procurement review that prevented a previously planned purchase of the same units at P11 million each.
The new fleet aims to alleviate reliance on barangay-provided vehicles, which supported waste collection operations during equipment shortages that began in 2022 when existing city trucks suffered major mechanical problems.
The City is finalizing a settlement with Asian Energy Systems Corp. to resolve a legal dispute, which will allow Mandaue to reduce waste tipping fees from P3,200 to P1,200 per ton.
THE Mandaue City Government has acquired three new dump trucks and is moving to settle a long-running waste disposal dispute, steps that Mayor Thadeo Jovito “Jonkie” Ouano said will strengthen garbage collection services and lower operating expenses.
Ouano announced the acquisition of three new high-capacity dump trucks, which will be added to the City’s waste collection fleet.
The City has faced equipment shortages since 2022 after several dump trucks suffered major mechanical problems. To keep garbage collection services running, the City Government relied on vehicles provided by several barangays.
The newly acquired trucks have a 25-cubic-meter capacity, larger than the City’s older 20-cubic-meter units. Officials expect the added capacity to improve collection efficiency.
Procurement review cuts purchase price
Ouano said he halted a previous procurement deal after taking office and ordered a review before approving the purchase.
“When I showed up, the check was already ready to be signed,” the mayor said. “But I had it investigated first to see if the pricing was correct and not overpriced.”
The review found that the City was set to pay P11 million for each dump truck under the earlier procurement plan. After the contract was canceled, the City purchased the new units for about P6.99 million each.
“These are brand new, not refurbished,” Ouano said. “They have a bigger engine and a bigger capacity.”
Barangays carried the burden
The arrival of the new vehicles is expected to ease the burden on barangays that helped maintain waste collection operations during the equipment shortage.
Barangays Opao, Banilad, Looc, Canduman and Guizo provided garbage trucks to support the City’s collection efforts.
“Imagine, the City Government was the one borrowing from the barangays,” Ouano said.
He said the City Government should now be in a better position to assist barangays when needed.
Dispute nears resolution
Meanwhile, the City is finalizing a compromise agreement with Asian Energy Systems Corp. in Consolacion to settle a legal dispute involving waste disposal services.
Under the proposed agreement, the City will pay P9.3 million in principal obligations. The settlement would remove interest charges, penalties and legal fees connected to the case.
Ouano said resolving the dispute is part of the administration’s effort to improve the City’s financial position and reduce operating costs.
Tipping fees set to drop
Once the agreement is completed, which Ouano said could happen next week, the City plans to stop using a third-party disposal provider that charges P3,200 per ton.
Instead, the City Government will return to a direct arrangement with Asian Energy, reducing the tipping fee to P1,200 per ton.
Officials said the lower rate is expected to generate significant savings for the City.
More trucks still needed
Despite the new acquisitions, Ouano said Mandaue still needs additional equipment to meet the demands of a highly urbanized city.
He said the ideal fleet would consist of eight dump trucks. The three new units, together with the City’s existing vehicles, provide a starting point for rebuilding collection capacity.
“Hopefully by next year, we can add three more,” Ouano said.
He credited Vice Mayor Glenn Bercede and members of the City Council for supporting the procurement process.
“If it weren’t for them, it would have taken us much longer to procure these new dump trucks,” he said.
The City is expected to finalize its memorandum of agreement with Asian Energy next week, a step that would settle the dispute and allow the shift to lower-cost waste disposal services. / ABC