Capitol grants Suez Group OPS status in WTE project

CEBU, Philippines — The Cebu Provincial Government, through its Economic Enterprise Council (EEC), has granted the Original Proponent Status (OPS) to a France-based global utility company intending to invest P9.12 billion in a waste-to-energy (WTE) project in Cebu.

The Capitol granted the OPS to Suez Group, after its Project Development Director Kohei Kimura, presented the company's unsolicited proposal for the WTE project during the EEC meeting chaired by Governor Gwendolyn Garcia on October 10 at the Capitol.

The company intends to invest around P9.12 billion in the project, which seeks to tackle the increasing waste issue in the province.

Initial discussions for the project have indicated that the joint venture will operate under a Build-Transfer-Operate scheme.

In a report by Sugbo News, Capitol’s official media arm, it shared that Suez Group is a company that focuses on water and waste management. Their expertise includes waste treatment, recycling, resource recovery, water management, and the creation of technologies to support a circular economy.

The utility company is reportedly operating in more than 70 countries that are well-known for their leadership in sustainable urban development.

According to Section 4-A of RA 7718, in cases of unsolicited proposals, the company granted the OPS has 30 days to match a lower-priced offer from a competing bidder during a Swiss challenge.

Additionally, this process is intended to encourage competition by attracting other investors who may present more favorable terms for the government.

If realized, the project will see the construction of the facility on a 7.6-hectare lot owned by the Capitol in Barangay Tinaan, Naga City.

As reported, this facility in Cebu has the potential to become the first operational WTE facility in the Philippines.

Under the proposed WTE project, solid waste from the towns and component cities of Cebu will be collected and processed at the WTE facility, which can basically convert waste into energy.

With this initiative, it hopes that the province can significantly reduce reliance on landfills and promote sustainable waste management.

Meanwhile, the energy that will be produced by the facility will be sold to the power grid or private buyers.

It also added that the Capitol is expected to generate revenue from the partnership through its share of the electricity generated, land lease fees, and other considerations, which are still under negotiation.

Also present during the meeting were EEC members, including Provincial Board Members Glenn Anthony Soco and John Ismael Borgonia; Provincial Treasurer Atty. Roy Salubre; Provincial Legal Officer Atty. Donato Villa; and Capitol Legal Consultants Atty. Ben Cabrido and Atty. Rory Jon Sepulveda. – /ATO (FREEMAN)