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Quezon City seeks bidders to solid waste management PPP project

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DENR assessing waste disposal alternatives as Rodriguez landfill expected to be full by 2022
PHILSTAR

By Elijah Joseph C. Tubayan, Reporter

THE QUEZON CITY local government is inviting prospective competitive bidders for the P22-billion Integrated Solid Waste Management Facility Public-Private Partnership (PPP) Project, as tender documents will be available for purchase starting next week.

In a statement late Thursday, the PPP Center said the Quezon City government 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).”

The project also includes the construction of a monofil for fly ash disposal, and other ancillary facilities such as monitoring systems, administration buildings, scale houses, transmission lines, utility systems, among others, with an overall indicative cost of P22 billion.

Interested challengers must purchase tender documents from the Quezon City government worth P300,000 available starting Oct. 30.

The pre-bid conference has been tentatively set on Nov. 22, and the bid submission date on Jan. 31 next year. The winning proponent is targeted to be selected by Feb. 28, followed by the issuance of the notice of award and the signing of the project documents on March 5, and 25, respectively.

Quezon City accepted the project as an unsolicited proposal, and awarded the original proponent status to a consortium of Metro Pacific Investments Corporation (MPIC), Covanta Energy, LLC, and Macquarie Group Limited on March 17 last year, followed by the signing of a Joint Certification of Successful Negotiation on Oct. 12 this year.

The original proponent has the right to match the lowest complying bid submitted by challengers in a Swiss challenge.

The main bid parameter will be based on the lowest tipping fee — or the fee charged by the operator accepting the solid waste — inclusive of value-added tax (VAT) and other applicable taxes.

According to the tender documents, the Quezon City local government 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,” the PPP Center said.

Private concessionaires will get 95% of the revenues generated from tipping fees, power generations fees, and the sale of by-products, while the local government will take the remaining balance.

The project will have a 35-year concession period.

The proponent is expected to provide the local government with a “sustainable, environmentally friendly, and cost-efficient waste disposal solution for its current solid waste management challenges.”

Among expected outcomes of the project include: reduced exposure to illnesses from biohazards and pests, job creation from the construction, operation, and maintenance of the project, reduced greenhouse gas emissions, and savings from electricity costs.





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