The Iloilo City Government and Korean firm Dream Eng. Company Ltd. signed a memorandum of agreement to establish the first solid waste-to-energy project within the Calajunan dumpsite.
The Iloilo City Council authorizes Mayor Jed Patrick Mabilog via Resolution No. 2014-163 to sign the MOA for and in behalf of the city government.
Mabilog and Dream Eng. Chairman Youn Pyo Hong led the signing of the agreement to cement a joint venture agreement for an expected power generation of more than 6 megawatts to augment the power supply here.
One megawatt could be used to light up the industrial complex while 5 megawatts could be sold to the Panay Electric Company (PECO) under a power purchase agreement with a power rate cost to be determined by the Energy Regulatory Commission (ERC).
Mabilog is enthusiastic the renewable energy project will also help address the garbage problem of the city and extend the life of a sanitary landfill up to 30 years.
Mabilog said the contract for the solid waste-to-energy plant will run for 20 years renewable with the city getting a 5 percent share of the gross income or roughly $20,000 income every month.
The city is collecting some 300 metric tons of garbage everyday and 250 metric tons are earmarked as fuel to the project.
The garbage and the remaining 50 metric tons garbage collection everyday will be used by some 300 scavengers and waste pickers for their livelihood. The United Calajunan Livelihood Association (UCLA), the organization of the waste pickers in the dumpsite, produced house decors and fancy jewelries made out of garbage papers and magazines.
Youn Pyo Hong said they prefer local people from Iloilo City to work in the energy industrial complex and may accept local engineer students to be trained in Korea. Dream Eng. posts a track record in Korea for having constructed four industrial units already using solid waste.