There were no challengers submitting comparative proposals for Quezon City’s Waste-to-Energy project, as of submission deadline of February 4, 2019 at 3pm. The City Government’s Public Private Partnership Selection Committee (PPP-SC) has therefore moved to endorse to Mayor Herbert Bautista, the proposal of the lone proponent, the consortium of Metro Pacific Investment Corporation, Covanta Energy LLC, and Macquarie Capital Ltd. The next move is a request for the City Council to grant authority to the mayor to sign the contract with the consortium.
The consortium submitted an unsolicited proposal to the QC-LGU and was recognized by the QC PPP-SC as the Original Proponent. The QC-LGU thereafter launched a Swiss Challenge, in accordance with PPP rules, inviting other proponents to match the offer. The empty bid box shown last February 4 confirmed that no other bid proposals were received, announced PPP-SC head City Administrator Aldrin Cuña.
This opens the doors to a lasting legacy that will be left by the Bautista Administration to a project that will continuously provide lasting benefits to the people in Quezon City. The project involves Biodegradable Source Separated Waste Treatment and Residual Combustible Waste Treatment Technologies capable of processing up to 3,000 metric tons of municipal solid waste (MSW) per day and generating 36 MWe (net) of electricity. This, according to the MPIC, is twice the current electricity needs of the local government. The project will make the need for maintaining landfills unnecessary, while generating a project with high potential for new employment opportunities. In turn, this will lead to reduced greenhouse gas emissions, because of the avoidance of a landfill.
The Philippine PPP Center, which has guided the Quezon City PPP-SC and its technical working group all through its processes. The technical working group was led by the city government’s Environmental Protection and Waste Management Department headed by Ms. Frederika Rentoy, which is directly in-charge of the waste management program of the city.
It is a pioneering program, the first in the Philippines, according to the PPP Center. Calling Quezon City a very progressive local government, Ms. Mia Mary Sebastian of the PPP Center said, “We commend the local government for looking at the long-term future as well as the use of innovative technologies for the long-term solution to solid waste management,”. “This is the first local government that we have assisted that has closed in terms of its Swiss challenge process for an unsolicited proposal.”
This is a Php 22 billion project which will involve the provision of the following infrastructure facilities: biodegradable source separated organics facility, residual combustible waste treatment facility, monofill for fly ash disposal, and other ancillary facilities like continuous emission monitoring system, transmission lines and other support facilities. The concession period is 35 years.
Quezon City Government is set to hold a Comparative Proposal or Bid Submission, along with the Opening of the Qualification Document, for the Quezon City Integrated Solid Waste Management Facility (ISWMF) project will on February 4, 2019, 3:00 pm onwards at the EPWMD Conference Room, 6th floor of the Building Regulatory Offices (Civic Center D) Quezon City Hall compound.
The ISWMF project is now on Stage 3 of the Competitive or Swiss Challenge where potential challengers can submit comparative proposals for the project, pursuant to the provisions of the QC Public-Private Partnership Code and its implementing rules and regulation.
The PhP15-billion worth Waste to Energy project is Quezon City’s first public-private partnership project.
The project is seen as a major step toward a long-term and sustainable solution to Quezon City’s solid waste management challenges. This world-class and modern waste management technology system can process up to 3,000 metric tons of municipal solid waste (MSW) per day.
The project is expected to increase health benefits to QC residents, which could result in reduced hospitalization cost and medical fees associated with exposure to biohazards and pests.The project is also expected to create additional employment during its construction, operation, and maintenance phases.
In addition, the project will help reduce GHG emissions and improve the air quality of the city.
Lastly, the project will generate additional savings as it would require lesser amount of fossil fuels to generate the same amount of electric power.
Other LGUs like Cebu and Naga City are also considering the implementation of similar projects.
In March 2017, the Quezon City Local Government granted Original Proponent Status to Metro Pacific Investments Corporation, Covanta Energy, LLC, and Macquarie Group Limited (“Original Proponent”) for its unsolicited proposal to establish an Integrated Solid Waste Management Facility Project (the “Project”) in Quezon City. On 12 October 2018, the Quezon City Local Government and the Original Proponent signed a Joint Certification of Successful Negotiation.