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Paleco yet to receive proposal from AustWorks

Under the deal, AWC committed to build and operate the WTE facility at the City Sanitary Landfill in Barangay Sta Lourdes, and undertake garbage collection services for a minimum of 25 years. (File photo)


The Palawan Electric Cooperative (Paleco) clarified on Tuesday it has yet to issue a power supply agreement (PSA) to Puerto Princesa City’s waste-to-energy (WTE) facility developer AustWorks Corp. (AWC).

Paleco Board Chairman Jeffrey Endriga said they have so far advised the private firm to start the process of complying with the PSA requirements.

“They should first submit their financial model, timeline, technology model, and distribution impact study before we give them the PSA to ensure there will be no delay in implementation,” he told Palawan News.

“As of now, the ball is in their hands because until now we are still awaiting their submission of all the documents,” he said.

He said their main consideration in issuing a PSA to any power provider is the company’s financial stability to ensure it can sustain the facility’s operations.

Endriga said while they are hoping the project would be successful, “it’s a gamble on their side since they are the investor, not us.”

In 2016, the city government and Philippine-registered AWC signed a joint venture agreement to put up a P2.1 billion waste-to-energy plant, utilizing “thermal gasification technology.”

Under the deal, AWC committed to build and operate the WTE facility at the City Sanitary Landfill in Barangay Sta Lourdes, and undertake garbage collection services for a minimum of 25 years.

Earlier this month, the Department of Energy (DOE), as per the recommendation of its Renewable Energy Management Bureau (REMB), signed the operating contract for the power facility.

Based on the agreement, AWC will prepare a Detailed Engineering and Design (DED) within 30 days from the signing of the DOE operating contract.

AWC plans to start building the facility later in 2018 after finalization of the DED, with a forecasted operational date of late 2020.

AWC has not yet replied to Palawan News’ query on their filing of a proposal to Paleco.

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