Davao City needs to revisit WTE costs

City admin emphasizes the need to reassess project cost to determine its viability — whether the city can still afford the fees and how much revenue can be generated from electricity sales
Davao City needs to revisit WTE costs
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AN OFFICIAL from the Davao City Government underscored the need to revisit the financial projections of the long-delayed Waste-to-Energy (WTE) project.

Lawyer Tristan Dwight Domingo, assistant city administrator and project manager of the Davao Bus Project, said on Thursday, April 25, 2025, that due to the extended implementation delay, the project’s financial estimates must be reviewed.

“Katong financial projections nato we need to check it again kung financially okay ba ug pila gyud ang fee sa city, pila ang baligya sa kuryente (We need to reassess the financial projections to determine if they’re still viable — whether the city can afford the fees and how much revenue can be generated from electricity sales),” Domingo said in a media interview. 

He explained that this would involve a short feasibility reassessment focused on determining whether the project still makes financial sense and if the local government can support its funding.

Earlier, Councilor Temujin “Tek” Ocampo, chairperson of the Committee on Environment and Natural Resources, stated during Aprubado sa Konseho on March 4 that the city is currently working with the Japanese government through the Japan International Cooperation Agency (Jica) to move the WTE project forward.

Ocampo said the project could be implemented either via a Build-Operate-Transfer (BOT) scheme or a Public-Private Partnership (PPP). Under these options, the Japanese government would fund the construction, while the Davao LGU would handle permitting and land acquisition.

Meanwhile, the Department of Environment and Natural Resources–Davao Region (DENR-Davao) announced on July 16, 2024, that the project was already ready for implementation, but was still waiting for approval from the National Economic and Development Authority (Neda).

DENR-Davao Regional Director Atty. Ma. Mercedes V. Dumagan said a budget had been allocated for the project during their most recent meeting, but the funds lapsed due to pending approval from Neda’s Investment Coordination Committee (ICC).

For years, Davao City councilors have hoped the WTE project would provide a long-term solution to the city’s landfill crisis. On May 14, 2024, Councilor Ocampo shared that an Australian firm had expressed interest in building a 50-megawatt WTE facility — more than four times the capacity of Jica’s proposed 12-megawatt plant.

Councilor Louie John J. Bonguyan added in a May 21, 2024, press conference that although the project involves waste burning, it would operate under strict environmental regulations.

However, the Davao-based environmental group Interfacing Development Interventions for Sustainability (Idis) raised concerns, warning that even with non-incineration technology, the WTE project could still pose risks to both the environment and public health. RGP

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