Cebu City’s P130 million payment to Binaliw landfill operator Prime Integrated Waste Solutions (PWS) is currently stalled because a signature from a former city official is missing on official documents.
PWS must secure the lifting of an EMB-7 Cease and Desist Order, issued after a Jan. 8 landfill collapse killed 36 workers and one volunteer rescuer, before accepting city waste.
While awaiting Binaliw's environmental clearances, Cebu City is temporarily hauling its trash to the Aloguinsan landfill, a solution that officials admit places a heavy strain on the municipal budget.
CEBU City is prepared to settle an outstanding P130 million obligation to the operator of the Binaliw landfill, but the payout is currently blocked by a single missing signature on an official document.
The Cebu City Government is ready to clear its unpaid bills with Prime Integrated Waste Solutions (PWS), operator of the Binaliw landfill. However, Kenneth Siasar, chief of staff to Mayor Nestor Archival, confirmed Monday that the release of funds remains stalled.
Siasar stated that the current administration is fully willing to pay off valid debts left behind by previous city leadership once all required paperwork is completely signed.
“As far as the administration’s interest and willingness are concerned, Mayor Nestor Archival’s administration is willing to pay the city’s outstanding obligation, provided that all the necessary documents are complete,” Siasar said.
The P130 million debt accumulated during the administrations of former mayor Michael Rama and former acting mayor Raymond Garcia under a previous garbage disposal setup. While the previous mayor already signed off on the documents, one required signature from another former city official remains unobtained due to unresolved matters involving that official.
Safety and environmental clearances needed
The payment delay comes as PWS handles financial pressures following a tragic Jan. 8 landfill collapse that killed 36 workers and one volunteer rescuer.
PWS general manager Niño Abellana Jr. clarified during an executive session with the Cebu City Council that collecting the P130 million is not a strict condition for accepting the city's waste again. Instead, PWS must first secure the full lifting of a Cease and Desist Order (CDO) issued by the Environmental Management Bureau in Central Visayas (EMB-7).
Siasar noted that the city is actively coordinating with the Department of Environment and Natural Resources in Central Visayas (DENR-7) to determine all necessary environmental requirements before waste disposal can resume at Binaliw.
While waiting for the Binaliw site to satisfy environmental standards, Cebu City is hauling its trash to the Aloguinsan landfill. City officials admit this temporary "band-aid" solution places a heavy strain on the municipal budget, but it allows trash collection to continue uninterrupted.
The city previously tried to hold three separate bidding rounds for garbage disposal contracts. PWS was disqualified during the first round in May over documentation issues and chose not to enter the subsequent rounds while waiting for its environmental order to be lifted.
Cebu City continues to view the Binaliw landfill as its main long-term garbage option. City officials plan to keep working alongside DENR-7 and PWS until all environmental requirements are met and normal operations can safely resume.