Approval of MOA for privatization of landfill stalled

CEBU, Philippines - The City Council yesterday deferred the approval of the Memorandum of Agreement between the city and the FDRCON, the firm that won the bidding for the privatization of the Ina-yawan Sanitary Landfill.

The draft MOA that is contained in a resolution authored by Councilor Augustus Pe Jr., which was introduced to the Council more than a month ago was scheduled for its third and final reading yesterday until Councilor Jose Daluz III pointed out conditions in the MOA that are not included in the Terms of Reference for the bidding.

Daluz said the non-inclusion of the conditions might make other bidders question when the MOA will be approved and enforced.

These conditions include the granting of the expansion of the landfill in terms of capacity improvement to meet its present and future requirements and the use of the reclaimed areas for commercial activities that may be developed and operated.

“How can you get a commission on still to be reclaimed lot?” Daluz questioned.

Pe explained FDRCON will expand in terms of utilization of old garbage into other uses and other related activities. He also said has nothing against scrapping from the MOA the condition pertaining to the usage of reclaimed areas.

Another salient point Daluz pointed out was a provision granting FDRCON the right of first refusal to purchase the entire area of the landfill.

“We did not put this thing in the TOR, other bidders might question this,” Daluz said.

Pe explained that FDRCON, after having been granted the project and made enormous investment, is then given priority to own the property at a current market value.

“If FDRCON can’t afford it then they will not buy it,” Pe said.

Meanwhile, Councilor Gerardo Carillo also pointed out a provision, which requires the city government from paying the Capital Gains Tax.

The selling and buying of power as a result of the waste program, Carillo said, should not be included within the MOA but should be treated in another contract.

Pe eventually agreed to defer the approval of the MOA for another week, but requested his fellow Councilors to send their comments and observations to his office as soon as possible. — Ferliza C. Contratista/JMO (THE FREEMAN)