MVP firm eyes pioneering project to rid QC of garbage
A consortium led by infrastructure holding firm Metro Pacific Investments Corp. (MPIC) expects to invest over P16 billion on a project that seeks to convert the solid waste of Quezon City, one of the most populous cities in the metropolis, into renewable energy.
The project seeks to build a waste-to-energy facility that can convert per day 3,000 metric tons of Quezon City’s solid waste into 42 megawatts of renewable energy, enough to power up to 90,000 homes.
The Quezon City local government unit (LGU) earlier estimated the project at P8 billion to P10 billion, but MPIC president Jose Ma. Lim said this referred only to the equity portion of the project.
MPIC chief finance officer David Nicol added the actual cost could be “north of P16 billion.”
The group bagged the original proponent status for this project. This means that the project will still be subjected to a Swiss or price challenge but MPIC, as the original proponent, will have the option to match the best alternative offer.
“We’re given 60 days to finalize the terms of the challenge. That’s what we’re working on. We’re probably halfway there. We should be able to get the Swiss challenge started around the middle of the year or sometime in June or July at the latest,” Lim said.
Asked whether the consortium was planning to replicate the project with other local government units, Lim said: “Yes, we’re working on one, for another LGU.”
Outside Metro Manila
He added that the new project would be located outside Metro Manila.
The consortium also includes Covanta Energy LLC and Macquarie Group Ltd., MPIC disclosed to the Philippine Stock Exchange on Monday.
The “pioneering” proposal for an integrated solid waste management facility accepted by the Quezon City government will enable the LGU to own a power plant and subsidize the city’s electricity expenses.
An integrated solid waste management facility is seen as a sustainable approach to society’s use of resources such as reducing the amount of waste while being environmentally responsive.
3 to 4 years
If and when the consortium is awarded the project, development and construction would take around three to four years.
It is expected that the project would be funded through a combination of debt and equity.
Through Maynilad Water Services Inc. (Maynilad), MPIC—as an agent and contractor of the Metropolitan Waterworks and Sewerage System—acts as the water and wastewater services provider for the 17 cities and municipalities comprising the west zone of Metro Manila. The exclusive concession includes Quezon City.
