CEBU, Philippines – The city government has finally decided to award the Inayawan Sanitary Landfill privatization project to Cebuano firm, FDRcon, after the latter’s Spanish counterpart assured they will no longer withdraw from the partnership.
City administrator Francisco Fernandez, who chairs the Bids and Awards Committee (BAC) yesterday said, they will no longer declare failure of bidding after Endesa Genercion S.A., FDRcon’s Spanish counterpart, called up that they are pursuing with the project.
The P150 million service contract to operate, manage and maintain the Inayawan Sanitary Landfill was supposed to be awarded to FDRcon last week but was deferred after it was learned that Endesa was withdrawing allegedly due to certain violations made by the Cebuano firm on their Memorandum of Understanding (MOU).
But Fernandez yesterday said that the partnership will remain intact and FDRcon will carry out the project.
Earlier this week, FDRcon wrote a letter to Fernandez asking for reconsideration stating that with or without Endesa they are still capable to handle the project. It said the city has nothing to lose considering that the company has a performance bond.
“The city has nothing to lose because there is no capital expense, only opportunity cost,” Fernandez said.
To this, he said, a resolution will be prepared recommending the awarding of the contract to FDRCon to manage the landfill for 25 years.
But the resolution will still be subjected to the approval by the mayor, before the service contract is transmitted to the City Council for approval. — Ferliza C. Contratista/WAB (THE FREEMAN)