Payatas energy project undergoes Swiss challenge

By Jenniffer B. Austria – November 04, 2018 at 07:35 pm

The local government of Quezon City started the Swiss Challenge process for Metro Pacific Investments Corp.’s P22-billion unsolicited proposal to build a waste-to-energy project in Payatas, Quezon City.

The Quezon City government said in a project information memorandum that it would accept competitive proposals for the design, financing, construction, operation and maintenance of an integrated solid waste management facility.

The project involves the construction of biodegradable source separated waste treatment facility and residual combustible waste treatment capacity capable of processing up to 3,000 metric tons of municipal solid waste per day and generating 36 megawatts of power.

The Quezon City government said that based on the studies and due diligence it conducted, these technologies were deemed as the most appropriate technologies for processing the municipal solid waste.

The consortium composed of Metro Pacific, Covanta Energy Llc and Macquarie Capital Limited earlier submitted a P22-billion unsolicited proposal for a waste-to-energy project to the Quezon City government.

Under the plan, the LGU will conduct a pre-bid conference on Nov. 22, while the submission of competitive bids will be on Jan. 31, 2019.

The winning bidder will be announced on Feb. 28, 2019 while the notice of award was expected on March 5, 2019.

Under the Swiss Challenge, the consortium of Metro Pacific will have the opportunity to match the financial proposal of the winning challenger and, if it did, it would be awarded the contract.

The winning bidder shall be responsible for the design, financing, construction, operation and maintenance of the project and will receive compensation in the form of tipping fee from the LGU.

The local government will be responsible for paying tipping fees to winning bidder, delivery of 1,700 metric tons of MSW per day and right-of-way acquisition.

The winning bidder will be determined based on the lowest tipping that will be charged to the Quezon City government.

The proposed project is expected to provide the local government with a sustainable, environmentally friendly and cheaper waste disposal solution for its current solid waste management challenges.

Metro Pacific said if the project proved successful, this could be a template for other local government units to address their solid waste and garbage problems.

The infrastructure conglomerate earlier said it was looking at creating a portfolio of waste-to-energy facilities with a generating capacity of 300 MW in the coming years.

Metro Pacific currently has investments in hospitals, power generation, tollroads, logistics and water utility.