THE start of construction on the P4.8-billion waste-to-energy (WTE) project is facing another delay, prompting a local legislator to question the credibility of Cebu City’s private partner in completing the project.
The majority of the council members approved the resolution pushed by Councilor Joel Garganera that will authorize Acting Mayor Raymond Alvin Garcia to sign the amended joint venture agreement (JVA) with NewSky Energy Philippines Inc. during their regular session on Oct. 2.
Garganera, who chairs the committee on environment, said the amendment was according to the private firm’s request for a one-year extension of the construction of the WTE facility as the firm is still complying with all necessary permits and requirements for the project.
In October 2023, New Sky Energy Philippines Inc. also asked for a one-year extension, citing the need for additional time to acquire necessary permits, licenses, studies and related contracts.
During the session, Councilors Nestor Archival, Joy Augustus Young, Mary Ann de los Santos, and Jose Lorenzo Abellanosa objected to Garganera’s resolution.
Archival told the councilors that he is objecting to the motion since, for him, the project has been delayed for a long time.
In a follow-up interview on Sunday, Oct. 6, Archival said the fact that NewSky Energy Philippines is requesting a one-year extension means there is something wrong.
“It might be wala sila’y kwarta or wala’y klarong technology (they have no budget or no proper technology),” said Archival.
The City Government and NewSky Energy Philippines entered into a JVA for the construction of a WTE facility on Sept. 22, 2022.
The facility is expected to process up to 800 tons of waste once completed.
Garganera, in his resolution, said the letter they sent to the Office of the Mayor was forwarded to the City Legal Office, which responded with a legal opinion that the Department of Energy (DOE) issued Department Circular DC2024-06-0018, suspending all applications for five months from June 25 to Nov. 25, 2024, just in time for their application for a biomass energy operating contract.
He added that in the proponent’s application for clearances from the Department of Agrarian Reform, they needed to undergo land conversion for their lots from agricultural to industrial use.
He said that NewSky Energy Philippines has already conducted a geotechnical investigation, installed temporary fences, carried out a distribution impact study, met with concerned officials, purchased the project site and paid all taxes.
SunStar Cebu tried to reach Garganera for further details and comments regarding the matter, but the latter has yet to respond to messages as of the press deadline.
In a previous SunStar report, Garganera said the project’s civil work will start in November this year.
He said that NewSky Energy Philippines will cover all the project’s financial requirements, adding that they had already purchased a seven-hectare land for the facility in Barangay Guba.
New Sky Energy Philippines was granted one year to acquire the land and obtain all necessary permits for their project.
Subsequently, the company planned to allocate an additional two years for construction, aiming to have the WTE facility operational by 2025.
Garganera reportedly said that there is a great challenge in getting permits since NewSky Energy Philippines needs to comply with the requirements of the Department of Environment and Natural Resources (DENR) and the DOE.
He added that the City would want to have the facility as soon as possible to help reduce the volume of garbage.
Garganera said the time frame for the WTE project has been updated.
He had said the proponent would ensure compliance with all the requirements set by the DENR, the City Planning Board and any other relevant agencies involved in the project.
Garganera said the DOE is also waiting for the commencement of the project, as it will set precedence for other cities to follow suit.
Cebu City News and Information earlier reported that on Oct. 18, 2022, Swedish Ambassador to the Philippines Annika Thunborg told Vice Mayor Raymond Alvin Garcia that over 40 WTE companies supply 50 percent of the Scandinavian country’s energy.
If the City revokes the JVA with New Sky Energy Philippines, WTE operators in Sweden and Switzerland may be interested in giving separate proposals.
But for Archival, the WTE is a big city project that was not studied very well.
“I’m not sold out to the idea that it’s advantageous to the City because its path is not clear,” he said.
He said the proposed tipping fee for the WTE project would cost around P1,500, while the delivery fee would reach up to P2,500. If not pursued, the fees would be the same.
“Para nako dili gyud na ka-save ang syudad, musamot nuon ang problema (For me, the City can’t save from it, it just worsens the problem),” he said.
He said the proponent has not proven the effectiveness of the technology, citing the WTE plan abandonment at Baguio City by Mayor Benjamin Magalon on July 31.
