Jancom offers reduction in tipping fee

An official of Jancom Environmental Corp. said recently that he is amenable to a further reduction in the tipping fee for its sanitary landfill project for Metro Manila’s garbage.

Metropolitan Manila Development Authority Chairman Benjamin Abalos Sr. announced yesterday that JEC President Leonides Gonzales personally informed him of the possible price reduction during a television interview the other night.

Gonzales told Abalos that Jancom is willing to reduce its downscaled tipping fee of $32 per ton to a rate equal to the $18.89 benchmark being looked at by the MMDA.

Abalos quoted Gonzales as saying that Jancom can go down to any rate required by the MMDA. However, Abalos expressed his apprehensions about the offer of Jancom because there were no discussions concerning the details. He said that the statement of Gonzales will have to be carefully scrutinized to determine whether it will turn out to be beneficial to the government.

Abalos admitted that he was concerned about what the equivalent of Jancom’s price reduction will be since its original offer was several times higher than the $18.89 benchmark.

Gonzales also agreed to allow the MMDA to negotiate with other firms for part of Metro Manila’s daily total garbage output.

Under Jancom’s contract, the government must guarantee the delivery of at least 3,000 tons of garbage daily to the firm.

Abalos said Gonzales agreed to allow the MMDA to meet with other firms for the estimated 5,000 tons balance. However, the MMDA chief said he still has to consult with the Supreme Court on the issue because of its ruling on the Jancom case.

The Supreme Court upheld the decision of the Court of Appeals which states among others that all of the other bidding processes entered into by the government after the awarding of the Jancom contract were illegal and void.

The MMDA has already sought a clarification of the issues from the Supreme Court in order for them to push through with their negotiations. At least one other firm, the Pro Environment Consortium, is standing by, for the MMDA’s decision on the Jancom case.

Pro-Environment won a contract with the MMDA for the handling of 2,000 tons of garbage daily.

The implementation of the contract was put on hold because of Jancom’s case against the MMDA.