CLARK FREEPORT — The Metro Clark Waste Management Corporation (MCWMC) yesterday clarified that their lease agreement for the 100-hectare property, where the Kalangitan Sanitary Landfill in Capas, Tarlac is situated, will not expire in October 2024.
The clarification was made to address the claim of Bases Conversion and Development Authority (BCDA) that their 25-year partnership with MCWMC is expiring this year.
Vicky Gaetos, Executive Vice-President of MCWMC, explained that their contract with Clark Development Corporation (CDC), the implementing arm and subsidiary of BCDA, has two components which include a lease and a service contract.
She said the service contract pertains to MCWMC’s exclusive right to provide waste management services to locators inside Clark Special Economic Zone.
She added the lease contract grant MCWMC the right to use the 100-hectare property for an integrated waste management center.
Gaetos cited Republic Act 7652 or the Investors Lease Act and Executive Order 429, which allow foreign investors long-term lease of land of up to a maximum period of 75 years.
“It is important to note that only the exclusivity clause is set to expire in October 2024. Our lease for the 100-hectare property itself, however, is not expiring because pursuant to the provisions of R.A. 7652 or the "Investors' Lease Act" and E.O. 429 Series of 1997, we are granted a lease period not exceeding 50 years that is renewable once for another 25 years,” Gaetos said.
To clarify the issue on the looming garbage crisis, the MCWMC executives said they sought judicial intervention by filing a case for Reformation of Instrument before the Regional Trial Court in Angeles City on June 11, 2024.
“As they have not been responsive to our request for years, we have filed for Reformation of Instrument, so that the contract accurately reflect the intention of the parties, and Fixing of Period, so the court can determine what is the correct period for the Lease”, Gaetos said.
“We are supported by law”, she added.
The German consortium that made the investment to construct the Integrated Waste Management Center was attracted by RA 7652 and invested on the waste management project, with the understanding that they will get the 50-year lease, the MCWMC officials said.
“Both parties, ourselves and CDC at the time the contract was signed, were in understanding that this was a long term lease that gave us up to 50 years,” said Engineer Holger Holst, MCWM Chairman and Technical Director.
“In fact, a detailed BCDA Master Plan from 2017 clearly shows the Kalangitan landfill present there for multiple phases. Section 4.9 entitled “Solid Waste Management” clearly shows that the facility is there until the year 2065,” Holst added.
He even urged the CDC, BCDA, and the DENR to look if the alternative facilities can accommodate the waste volume in the region by October.
“The capacity numbers being quoted are from permits and planned capacities. But capacity to handle waste today is nowhere near that, and it takes much much longer than a few months to build that much capacity,” Holst said.
Gaetos meanwhile assured their clients from the local government units and hospitals that their services will continue beyond October.
“We hope that we can come to an amicable solution to this problem, which will affect so many millions of residents in Region 3 and Pangasinan, even up to Baguio. We leave it to our legal team and ultimately to the Court to decide what happens next. In the meantime, we’ll continue to work and serve our customers and communities” Gaetos said