Mandaue Government., firm ink compromise deal

CEBU, Philippines — The Mandaue City Government and Asian Energy Systems Corp. have signed a compromise agreement to settle the city’s financial obligation amounting to around ?9 million.

Under the agreement, the city will pay ?9.3 million to resolve the outstanding obligation, paving the way for a more efficient waste disposal arrangement.

City Administrator Atty. Gonzalo “Sally” Malig-on said that once the court approves the agreement, the settlement will allow Mandaue City to reduce waste management costs, as it will no longer need to rely on a third-party service provider for garbage disposal.

"We are pleased to announce that the City of Mandaue represented by Mayor Jonkie ug ang Asian Energy Systems Corp. nga maoy operator sa waste disposal area in Consolacion, nagkapirmahay og compromise agreement," said Malig-on.

The unpaid obligation covers services rendered from 2011 to 2018. A legal case related to the matter has already been filed in Parañaque City.

"Sa previous nga mga administration, nikiha man ‘ning company sa city kay wa mabayri sa facilities nga gigamit sa city pag-dump sa basura," Malig-on said.

Following efforts by the city government to resolve the case, both parties arrived at a compromise agreement to settle the city’s actual liabilities with the company.

Under the proposed agreement, the amount will be paid without interest or penalties.

"Finally na-settle, for now, nagkapirmahay and i-submit ni didto sa korte for approval and after ana, i-inform ang COA, then hopefully mahuman ang kaso," Malig-on said.

She said once approved by the court and state auditors, the agreement could open the possibility for the city to directly avail itself of the waste disposal facility in Consolacion, subject to procurement laws.

For now, the city cannot directly dispose of its waste at the facility and must still go through a third-party hauler.

Asian Energy Systems Corp. is currently the only facility accepting solid waste from Mandaue City.

"That is very difficult sa city kay mahal atong arrangement nga muagi pa ta og third party hauler labi na pagsirado sa Binaliw," said Malig-on.

Malig-on said the city is currently unable to directly dispose of its waste at Asian Energy Systems Corp., unlike when it was still using the Binaliw landfill.

"Dili lagi sila mosugot kay naay kaso ang city mao ng gi-settle sa mayor," said Malig-on.

"Hopefully kung ma all systems are cleared sa court and COA, ma-open ang possibility nga didto na ta molabay subject to procurement loss," said Malig-on.

Once approved, Malig-on said the city will later open bidding to look for a solid waste disposal facility.

He explained that Asian Energy Systems Corp. could then be considered, as the company has so far declined to accept the city’s waste due to the pending case.

"Dako kaayo ang savings sa city," said Malig-on.

He explained that when the Binaliw landfill was operational, the city’s annual solid waste management budget for tipping fees ranged from ?60 million to ?70 million.

However, when the Binaliw landfill closed due to the "trashslide" incident, Mandaue City had to rely on a third-party hauler, resulting in a budget of more than ?200 million per year.

"Imagine the difference, gusto g’yud sa city, maong sigeg ana ang mayor the past months nga ma-settle g’yud siya para mobalik ta sa normal nga rate," said Malig-on.

Malig-on said settling the case is an important step toward reducing solid waste management costs, noting that if the high rates continue --similar to those faced by other local government units-- the challenge would affect not only the city’s finances but also other public services.

"Magproblema sa budget ug sa services kay mag-realign of services para sa solid waste management which is dako kaayo," said Malig-on.

Malig-on added that the ?9.3-million payment will be made only after court approval.

If the agreement pushes through, the city could save around ?2,000 per ton in waste management costs.

Currently, the city pays ?3,200 per ton to a third-party contractor to dispose of waste at the facility. — (FREEMAN)