A consortium led by infrastructure holding firm Metro Pacific has obtained original proponent status for an unsolicited proposal to develop a solid waste-to-energy facility for Quezon City.
Apart from Metro Pacific Investments Corp. (MPIC), the consortium also includes Covanta Energy LLC and Macquarie Group Ltd., MPIC disclosed to the Philippine Stock Exchange on Monday.
The integrated solid waste management (ISWM) facility accepted by the Quezon City (QC) government will be capable of processing and converting up to 3,000 metric tons per day of the city’s municipal solid waste into 42 megawatts of renewable energy, enough to power between 60,000 to 90,000 homes.
The project will be undertaken through a joint venture between QC local government unit (LGU) and the consortium in accordance with QC LGU Ordinance: No. SP-2336, s. 2014.
As the original proponent of the project, the consortium will have the exclusive rights to enter into detailed negotiations with LGU. Upon successful completion of negotiations, the project will be subjected to a competitive challenge consistent with government regulations.
Under such a “Swiss” challenge mechanism, other parties will be asked to submit alternative proposals for the same project but the original proponent will have the right to match the best terms.
“The volume of solid waste as a result of economic growth and urbanization has become a challenge for local governments to ensure effective and sustainable management of waste”, said Jose Ma. Lim, president and chief executive officer of MPIC.
“An integrated solid waste management facility is a sustainable approach to society’s use of resources to reduce the amount of waste that must be placed in landfills for disposal while being environmentally responsive.”
If and when the consortium is awarded the project, development and construction will take around three to four years. It is expected that the project will be funded through a combination of debt and equity.
The QC City Government believes that the project will provide an environmental, sustainable, long term, world-class waste management solution that will eliminate the need for landfilling and will provide QC with other important fiscal and socio-economic benefits.