MOU on coal ash recycling signed

CEBU, Philippines - A memorandum of understanding was entered into by the Province of Cebu, KEPCO-SPC Power Corporation and FDRCon Company, Inc. on the ash recycling fee.

Pursuant to the amended Ash Disposal Landfill Facility Services Agreement dated November 10, 2009, the Province allowed KSPC to deliver its by-products, ash, to a contractor for recycling.

The said agreement granted the Province the exclusive rights over ash produced by the power plant in Colon, Naga City. The power plant intends to dispose of the ash to the Ash Landfill Facility of the contractor in Pangdan, Naga City who offered to receive the ash for recycling and for a fee.

It was earlier agreed that with the province’s support and cooperation to KSPC to resolve complaints from nearby residents, the power plant shall pay the Province $1 per metric ton of ash disposed into contractor’s landfill facility.

However, in the event that the contractor decides to recycle the ash taken from the power plant, the contractor shall enter into an applicable agreement with the Province for the payment of recycling fee and the power plant shall pay the Province $1 per metric ton of ask recycled by the contractor.

Within 20 days from the signing of MOU, the contractor shall complete the construction of the facility with a capacity of at least 56,000 cubic meters and secure the necessary requirements from the Department of Environment and Natural Resources in relation to the facility with a capacity of 180,000 cubic meters.

It is also agreed that contractor’s obligation to receive the ash from the power plant for disposal to the landfill or for recycling shall be subject to whatever conditions, if any, that may be imposed by the Regional Trial Court Branch 28 in Mandaue City in relation to the pending environmental case.

In consideration for the disposal of the ash, KSPC shall pay the contractor a tipping fee of P150 per metric ton of ash delivered to the facility. (FREEMAN)