City council defers confirmation of P2.3-B JV deal for energy facility
ILOILO City – The Iloilo City Council yesterday deferred to confirm the joint venture ( JV) agreement entered into by the city government and Metro Pacific Water Investment Corp. (MPWIC) for the construction of a P2.3- billion Integrated Solid Waste Management Facility (ISWMF) in Barangay Ingore, La Paz district.
In their regular session yesterday, the city councilors agreed to refer the project agreement and joint venture to the public-private partnership (PPP) selection committee for further deliberations on some relevant provisions of the deal.
In an interview, Councilor Frances Grace V. Parcon, the city council’s rules, ordinances, justice, and legal affairs committee chairperson, said the previous resolution authorizing Mayor Jerry Treñas to enter into the joint venture was merely a “blanket authority.”
“But when we checked the signed JV agreement, t here were substantial amendments to the contents in the new agreement. So the city council decided to defer its confirmation so we could check the documents considering that this is a PPP agreement,” said Parcon.
Last March 1, Treñas entered into a joint venture agreement with MPWIC for the construction of a cuttingedge ISWMF.
Members of the city council were also present during the ceremonial signing along with MPWIC officials.
The proposed waste- toenergy ( WtE) facility can process up to 470 tons of nonrecyclable waste as potential fuel daily and produce around 2.4 megawatts of energy.
Treñas stressed the need for the city to find alternative waste management solutions considering the lifespan of the Calahunan sanitary landfill is about to end in about three more years.
“The introduction of a WtE facility not only provides a sustainable and efficient solution for managing the city’s waste but also presents a remarkable opportunity for Iloilo City’s economic growth,” Treñas said.
The agreement was calendared as a mere “other matter” during the city council session yesterday. Hence, Parcon said they need more time to study the agreement.
The councilor recalled that when the city council passed the resolution in 2023 authorizing the mayor to enter the agreement, there was no second party at that time.
She said they already informed Treñas about their decision and the latter also agreed to it. The councilor said they would schedule the matter during their next session or might schedule another committee hearing on the agreement to discuss important provisions of the agreement.
Under the agreement, the ISWMF would treat, recover and convert the city’s waste i nto refuse- derived f uel (RDF) and biogas, considered renewable energy sources by the Department of Energy.
The facility will be installed with appropriate technology and equipment for the operation and maintenance of the facility.
“It will significantly reduce the waste that ends up in Iloilo landfills, conserving natural resources, and minimizing environmental impact. The project is also estimated to result in a reduction of 129,000 metric tons per year of CO2 (carbon dioxide) equivalent,” Metro Pacific Water said in a statement.
In a separate interview, Jose Maria Madara, president and CEO of Metro Pacific Water, said they conducted a feasibility assessment before the unsolicited proposal was offered to t he city government.
Since the facility is not incinerator- based, Madara said the project will not emit poisonous and toxic fumes and will remain compliant with the Clean Air Act and other environmental laws of the country./