City council OKs P2.3-B JV deal for energy facility

ILOILO City – The Iloilo City Council has confirmed the joint venture ( JV) agreement entered into by the city government and Metro Pacific Water Investment Corp. (MPWIC) for the construction of Integrated Solid Waste Management Facility (ISWMF) in Barangay Ingore, La Paz district.

In their special session yesterday, the city council validated the provisions in the joint venture agreement.

This means the P2.3-billion cutting- edge ISWMF may commence its construction in October this year.

On March 1, Mayor Jerry Treñas entered into a publicprivate partnership ( PPP) agreement with MPWIC on behalf of the city government.

The proposed waste- toenergy (WtE) can process up to 470 tons of non-recyclable 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 city council earlier deferred confirmation of the agreement after the city councilors agreed to further deliberate on some relevant provisions of the deal.

In an interview, Council Frances Grace V. Parcon, the council’s rules, ordinances, justice, and legal affairs committee chairperson, said the previous resolution authorizing Mayor Treñas to enter into the joint venture was merely a “blanket authority.”

The agreement was calendared as a mere “other matter” during their council session on Wednesday, March 6. Hence, Councilor 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.

Under the agreement, the ISWMF would treat, recover and convert the city’s waste into refuse-derived fuel (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,” the MPWIC said.

Jose Maria Ma dara, president and CEO of Metro Pacific Water, also said they conducted a feasibility assessment before the unsolicited proposal was offered to the 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.

“We will not incinerate. The process in the technology that we are adopting in this project will be fully compliant with the environmental laws of the country,” he said./