The Cebu Provincial Government, through the Economic Enterprise Council (EEC), has awarded Suez Group the Original Proponent Status (OPS) for the long-envisioned waste-to-energy (WTE) project in the province.
The OPS was granted after Suez Project Development Director Kohei Kimura presented the company’s unsolicited proposal to undertake the WTE project during an EEC meeting, chaired by Gov. Gwen Garcia, on October 10 at the Capitol.
Members of the EEC present included Board Members Glenn Anthony Soco and John Ismael Borgonia, Provincial Treasurer Atty. Roy Salubre, Provincial Legal Officer Atty. Donato Villa, and Capitol Legal Consultants Atty. Ben Cabrido and Atty. Rory Jon Sepulveda.
Under the law (Section 4-A of RA 7718), in unsolicited proposals, the one issued the OPS shall have the right to match in 30 days another proponent’s lower-priced proposal during a Swiss Challenge. Such challenge is designed to attract other investors who might offer better terms for the government.
If this project will materialize, the facility will be constructed on a 7.6-hectare Capitol-owned lot in Barangay Tinaan, City of Naga. It could very well be the first working WTE facility in the country.
Suez Group is a French-based global utility company specializing in water and waste management. Their core business includes waste treatment, recycling, resource recovery, water management, and the development of technologies to support a circular economy. They operate in more than 70 countries and are known for their expertise in sustainable urban development.
The company plans on pouring approximately P9.12 billion for the project which aims to address the growing waste problem in the province. Initial discussions revealed that the joint venture will be covered by a Build-Transfer-Operate scheme.
Under the WTE project, solid waste from Cebu’s municipalities and component cities will be collected and transferred to the WTE facility, which has the capacity to convert waste into energy; thereby greatly reducing landfill dependency and contribute to sustainable waste management.
The energy that will be generated will also be sold to the power grid or private buyers.
The Capitol is seen to generate a stream of revenue from the partnership from its shares of the electricity generated, land lease fees, and other considerations which are still subject to negotiations. | BJR