Quezon City seeks counter bids for waste management project

MANILA, Philippines — The local government of Quezon City is seeking comparative proposals for an integrated solid waste management project to challenge the proposal of a consortium led by Pangilinan-led Metro Pacific Investment Corp. (MPIC), the Public-Private Partnership (PPP) Center announced.

In its invitation, QC is inviting local and foreign entities to challenge the original proposal of the consortium for the design, financing, construction, operation and maintenance of a biodegradable source separated waste treatment and residual combustible waster treatment technology capable of processing up to 3,000 metric tons (MT) of municipal solid waste (MSW) per day and generating 36 megawatts (MW) of renewable power. 

This project is being undertaken as an incorporated joint venture pursuant to QC LGU’s Ordinance SP 2336, titled “Quezon City Code Pursuing a Public-Private Partnership (PPP) Approach Towards Development, Providing for the Procedure for Selecting the Private Sector Proponent, Adopting a Contract Management Framework, and Providing Appropriations and For Other Purposes.”

Its implementing rules and regulations are contained in the QC PPP Code.

The QC government and the original proponent – the consortium of MPIC, Covanta Energy LLC and Macquarie Group Ltd. – signed a Joint Certification of Successful Negotiation on Oct. 12.

To participate, challengers must purchase from the QC LGU the tender documents – which contains the detailed specifications for the project – beginning Oct. 30.

The pre-bid conference has been tentatively set on Nov. 22.

The winning proponent would be determined based on a single bid parameter which is the lowest tipping fee per metric ton of MSW, inclusive of value-added tax and other applicable taxes. This pertains to charges imposed on a given quantity of waste received at a processing facility.

The original proponent has the right to match the lowest bid submitted by challengers.

Under the tender documents, the QC LGU is responsible for the payment of the tipping fee. The city also commits to deliver 1,700 MT of MSW per day, to acquire the right-of-way for access roads and other utilities such as transmission lines, and to acquire the project site of the facility in case expropriation is required.

The project, which would have a concession period of 35 years, is expected to provide the QC LGU with a sustainable and cost-efficient waste disposal solution.

Improved solid waste management system in the city is expected to lower the cost of treating illnesses associated with exposure to biohazards and pests.

“Through this Integrated Solid Waste Management Facility PPP Project, QC LGU will provide its constituents with an environmentally-sound, sustainable, and long-term solution to the solid waste management challenges of the city,” said the PPP Center.

Additional employment is also expected to be created by the projects particularly those related to the construction, operation, and maintenance components.