ILOILO City—The country’s first waste-to-energy project will start construction here this year under a public-private partnership (PPP) arrangement.
Last March 1, the city government and Metro Pacific Water (MPW), a wholly-ownedsubsidiary of Metro Pacific Water Investments Corporation (MPWIC), forged the contract for the construction of a state-of-the-art Integrated Solid Waste Management Facility (ISWMF) in this city.
The deal was handed over to the MPW on Dec. 19, 2023, after the local government decided on the competitive challenge with no other bidders joining in.
“This outcome marks a historic milestone for us—building one of the country’s most technologically advanced waste recovery facilities only here in Iloilo City,” said Mayor Jerry Treñas.
Treñas presided at the contract exchange ceremony, along with MPWIC president and CEO
Andrew Pangilinan, Metro Pacific Iloilo Water (MPIW) chief operating officer Rob Cabiles, and MetPower Venture Partners Holdings, Inc. (MVPHI) president and CEO Jose Maria Madara.
To be erected on a three-hectare property in Barangay Ingore, La Paz district, the P2.3-billion ISWMF will handle 475 tons of waste per day.
The facility can produce up to 3.5 megawatts of power to augment the 10 megawatts for the desalination plant, which can produce additional water supply at a lower cost for city residents.
The city government will also get a share of the power generated from the facility.
The project represents an important building block in establishing Iloilo City as a major investment hub.
As a model in PPP, Iloilo is implementing a new technology to create value from waste streams, further cementing its leadership in sustainable waste management in the country.
The project will future-proof the metro by meeting its waste disposal requirements in a sustainable and environmentally-friendly manner.
The ISWMF will treat, recover and convert the city’s waste into refuse-derived fuel and biogas, which are considered renewable energy sources by the Department of Energy.
It will significantly reduce the waste that ends up in Iloilo landfills, conserve natural resources, and minimize environmental impact.
The project is likewise estimated to result in a reduction of 129,000 metric tons per year of CO2 equivalent.
“During the negotiations for the final terms of the proposal, both sides worked together towards a common objective, exploring new ways to address environmental issues, show flexibility and agree on tangible results that are important for businesses and the Ilonggo community,” Treñas said.
“We are very grateful to the Iloilo City Government for its support of this project. We applaud Mayor Treñas for his leadership and commitment to bettering the lives of Ilonggos,” Pangilinan said.
It is envisioned that implementation of the project will be undertaken by MVPHI, another wholly-owned subsidiary of MPIC.
“Our country desperately needs environmental solutions to address its waste management woes and, at the same time, provides energy security through the production of base load renewable energy. We are excited to undertake this project and believe this will be the first of many more to come,” Madara said.
It was last year when Iloilo City announced its intent to build a waste-to-energy facility to tackle its growing waste problem instead of having the government construct another sanitary landfill.
In March 2023, the city mayor attracted the attention of world-class players in the waste management sector when he was invited to a high-level forum organized by the Makati Business Club and the embassy of The Netherlands to share the city’s best waste management practices.