MAYOR Michael Rama has received approval from the Cebu City Council to sign a joint venture agreement (JVA) with New Sky Energy (Philippines) Inc. (NSEPI) for the establishment of a waste-to-energy (WTE) facility in Cebu City at no cost to the city government.However, opposition councilors questioned why approval was given in the absence of a feasibility study from the project’s proponent, including the identification of the location for the facility, among other things.The facility would process 800 tons of waste per day and produce an estimated 18 megawatts of electricity.NSEPI would invest P4.8 billion in the facility while the Cebu City Government would not have to spend a single centavo.Councilor Raymond Alvin Garcia, who authored the resolution, succeeded in getting a 9-5 vote to give Rama authority, while two councilors abstained from voting during the council’s regular session on Wednesday, March 9, 2022.Those in favor were City Councilor Phillip Zafra, Joel Garganera, Renato Osmeña Jr., Garcia, Dave Tumulak, Eduardo Rama, Jerry Guardo, Niña Mabatid and James Cuenco, while those opposed were Alvin Dizon, Franklyn Ong, Lea Japson, Eugenio Gabuya Jr. and Nestor Archival Sr. Councilors Joy Pesquera and Jessica Resch abstained.Garganera, chairman of the council’s committee on energy, said through the WTE, the city’s garbage would be eliminated with the City Government also getting a share in the revenue of the facility.Based on initial information on the JVA, there will be a P1,000 tipping fee per ton in the first three years. This will increase to P1,150 per ton in the fourth to sixth years with Cebu City Hall getting a three percent share in the gross net income of New Sky, going up to a five percent share for waste disposed in the WTE facility by other local government units, and another three percent share of the revenue on the sale of the 18 megawatts of electricity.Garganera said after the approval of the JVA and once it is signed by Rama, NSEPI will have 365 days to secure all the requirements needed like the permits from the barangay and City Hall, the Environmental Compliance Certificate from the Department of Environment and Natural Resources (DENR) and many others.Garganera said this was the right move for the City since in 2016, the court shut down the former Inayawan Landfill and ordered the city to take steps to protect the environment but this was not undertaken.The opposition led by minority leader Councilor Nestor Archival said the facility was important as it would solve the waste problem but he said there was no basis for forming such a joint venture.Archival said that under the Joint Venture Ordinance, both parties must have equity such as land, equipment and others, but under this JVA, the City Government would have no contribution.The minority leader also revealed that there was no feasibility study or financial study provided by the WTE proponent.However, Majority floor leader Garcia responded by saying that the presentation of such documents is done at the level of the Joint Venture Selection Committee while the role of the council is to approve or disapprove the venture.Archival added that the majority did not follow his passed resolution that they would get a new legal opinion as they gave the reason that the JVA already had a legal opinion during the administration of City Attorney Rey Gealon.What’s more, Archival said, the site where the facility is to be built has not even been identified.Mayor Michael Rama said he had not yet received a copy of the JVA but that this had long been planned by the city.“I will check on it. That was being a part of long time ago pa, solid waste management approaches. That is why I am not closing (the possibility that) all of these will be presented. We will evaluate this in order to solve our garbage problem,” Rama said.