MANDAUE City government may cut its garbage disposal costs by up to P2,000 per ton as it moves to finalize a compromise agreement with Asian Energy Systems Corp., a councilor said.
Councilor Joel Seno, chairman of the City Council’s committee on appropriations, budget and finance, said the proposed settlement is in progress following discussions led by Councilor Carlo Fortuna during the April 13 council session.
Seno said the council has discussed the compromise agreement and is reviewing all invoices.
Settlement
The city aims to complete the compromise agreement soon to proceed with direct transactions with Asian Energy. The City Council has authorized Mayor Thadeo Jovito “Jonkie” Ouano to negotiate and sign the agreement, Seno said.
Once finalized, the deal will help address garbage disposal issues and lower waste management costs. The city currently pays between P3,000 and P3,200 per ton.
Savings
If the agreement pushes through, the city could return to the original rate of around P1,200 per ton. This would save the city about P2,000 per ton by allowing direct transactions with Asian Energy.
Seno said the signed compromise agreement will carry the same legal weight as a court judgment. He said the agreement is not court-mandated but was chosen to avoid lengthy and costly litigation.
Once finalized, the agreement will be submitted to the court for approval. City officials said the settlement offers financial relief and a practical solution to waste management challenges.
Resolution
The move is feasible and allows the city to reach a fair resolution, Seno said. The City Government expects the agreement to stabilize garbage collection operations.
Officials said the reduction in fees is a key step in maintaining fiscal discipline while ensuring city cleanliness. Officials said they expect the court to approve the agreement once both parties sign the final terms. / ABC