Local officials of Caramoran town have signed a memorandum of agreement with a green energy company for the construction of a US300-million Waste-to-Energy (WTE) plant in barangay Bocon beginning early next year.
Under the deal inked last Oct. 23, 2019, the local government unit grants Asia Pacific Renewable Energy Solutions, Inc. a 25-year concession agreement to build and operate the plant, which will also produce about 34 megawatt-hours (MWh) of exportable electricity from the combustion of the waste.
In return, the LGU is obligated to pay Asia Pacific Renewable Energy tipping fees of US$32 to $35 per ton of waste delivered to the plant, an amount that wil be sourced from its collection of higher charges per ton from LGUs and other entities disposing of its waste at the plant.
Caramoran is also obligated to take all of the electricity proceed by the plant and pay for it at an estimated lower price than the current generation cost which can be recovered from selling the power to the First Catanduanes Electric Cooperative, Inc. and the Bicol mainland through a submarine cable.
With the authorization of the Sangguniang Bayan secured through a special session on the same day, Mayor Glenda Aguilar signed the agreement with Asia Pacific Renewable Energy president and chief executive officer Rafael Javier Eubra and Catanduanes Matibayon Development Corporation president Cedric Sanchez.
Also present during the brief signing ceremony at the district office of Congressman Hector Sanchez at the Legislative Building were Vice Mayor Chyrrel Barro and members of the municipal council, Asia Pacific Renewable Energy chief operating officer Thomas Kwok and chief financial officer William Cheah.
The Matibayon Company is leasing a 20-hectare lot at Bocon to Asia Pacific Renewable Energy for the construction of the plant which will involve the relocation of about 20 houses with full cost to be shouldered by the Sanchez firm.
CEO Eubra stressed that Asia Pacific Renewable Energy will invest all of the financing needed for the WTE plant with the LGU only required to provide its full support, aside from performing its obligations under the contract regarding tipping fees and the electricity produced by the plant.
Asia Pacific Renewable Energy is confident it will be able to begin construction by the first quarter of 2020 and complete the project within two-and-a-half years by October 2022.
In a briefing conducted for the benefit of the Caramoran officials, Eubra and his team disclosed that based on the data they gathered during an initial visit, Catanduanes generates a total of 200 tons of solid waste every day.
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