The local government unit of Quezon City (“QC LGU”) is currently inviting interested parties to submit comparative proposals for the City’s Integrated Solid Waste Management Facility PPP Project. The Project is being undertaken as an incorporated joint venture, pursuant to QC LGU’s Ordinance No. SP 2336, series of 2014, entitled “Quezon City Code Pursuing a Public-Private Partnership (PPP) Approach Towards Development, Providing for the Procedure for Selecting the Private Sector Proponent, Adopting a Contract Management Framework, and Providing Appropriations and For Other Purposes”, and its Implementing Rules and Regulations (“QC PPP Code”).
QC LGU and the Original Proponent (the consortium of Metro Pacific Investments Corporation (MPIC), Covanta Energy, LLC, and Macquarie Group Limited) signed a Joint Certification of Successful Negotiation on October 12, 2018.
In its Invitation to Submit Comparative Proposals, QC LGU is inviting local and international entities to submit comparative proposals for the design, financing, construction, operation, and maintenance of a biodegradable source separated waste treatment and residual combustible waste treatment technologies capable of processing up to 3,000 metric tons of municipal solid waste (MSW) per day and generating 36 MWe (Net). Detailed specifications are set forth in the Tender Documents.
In order to participate in the competitive challenge, interested challengers must purchase the Tender Documents from QC LGU. According to the Project Information Memo issued, interested investors will have the opportunity to purchase said Tender Documents beginning October 30, 2018. The pre-bid conference has been tentatively set on November 22, 2018.
Benefits of the project
The Project, which will have a concession period of thirty-five (35) years, is expected to provide QC LGU with a sustainable, environmentally friendly, and cost-efficient waste disposal solution for its current solid waste management challenges.
More specifically, the benefits expected from the Project include:
- Increased health benefits to the local population through proper waste treatment and disposal. This results to a reduction in costs of treating illnesses associated with exposure to biohazards and pests (e.g. hospitalizations, physician and medical fees, hospital out and in-patient costs, time lost for treatments, time lost for hospitalization, etc.);
- Additional employment associated with the construction, operation, and maintenance of the Project;
- Reduced Greenhouse Gas (“GHG”) emission through the avoidance of landfilling MSW thereby improving air quality in the City; and
- Additional savings equivalent to the amount of fossil fuels that would otherwise be required to produce the equivalent amount of electric power generated by the Project.
Lowest Tipping fee as Bid Parameter
The winning proponent will be determined based on a single bid parameter, i.e., the lowest tipping fee per metric ton of MSW (inclusive of VAT and other applicable taxes). Pursuant to QC PPP Code, the Original Proponent has the right to match the lowest complying bid submitted by challengers.
Under the Tender Documents, QC LGU is responsible for the payment of the tipping fee. QC LGU also commits to deliver 1,700 metric tons of MSW per day, to acquire the right-of-way (“ROW”) for access roads and other utilities such as transmission lines, and to acquire the project site of the facility in case expropriation is required.
Through this Integrated Solid Waste Management Facility PPP Project, QC LGU will provide its constituents with an environmentally-sound, sustainable, and long-term solution to the solid waste management challenges of the City.