Compromise on Jancom case sought

Metropolitan Manila Development Authority Chairman Benjamin Abalos Sr. admitted yesterday that he is negotiating with Jancom Environmental Corporation (JEC) for a possible compromise agreement on the P390 billion garbage contract.

This comes even as the MMDA has filed a petition with the Supreme Court en banc for a clarification and review of the High Scourt’s Third Division’s ruling in favor of JEC.

The MMDA argued that the JEC contract was too costly for the government and has negative implications on the environment.

Abalos said that he would continue negotiating with JEC while waiting for the decision of the Supreme Court.

He explained that all possible remedies would be sought by the government to come up with an immediate and permanent solution to the solid waste management problems of Metro Manila.

The Supreme Court’ Third Division recently ruled that the contract of JEC in 1997 was valid and perfected and should be honored by the government.

However, the Supreme Court also noted that the contract could not be implemented without the signature of the President.

President Arroyo said the other day that she is letting the government agencies involved in the contract settle the issue on their own.

The statement of the President virtually gives Abalos a freehand on the issue since MMDA is the principal agency involved.

"It is good to see that the President has full confidence in her Cabinet members," Abalos said.

Abalos pointed out that the JEC had already presented him with an offer of $22 per ton of garbage as tipping fee during the ongoing negotiations.

The offer of JEC is significantly lower than the $59 per ton fee agreed upon under the original contract.

JEC’s offer was based on a downgrade of its original proposal from incineration to landfill.

However, he said that he turned down the offer because it was still higher than the lowest price offered by another solid waste management firm.

He was referring to the $18.89 per ton tipping fee of the Pro-Environment Consortium which it presented during a garbage contract bidding held by the MMDA almost two years ago.

Abalos said that he would not accept anything higher than $18.89 from Jancom during the negotiations.

"If I accept anything higher than $18.89 I could be accused of having a share of the fees and be charged with graft," Abalos said. – Marvin Sy