Tarlac landfill closure affects WTE dev’t, erodes PH business climate
MANILA — A global leader in renewable energy said the impending closure of the Metro Clark Waste Management Corporation (MCWM) in Capas, Tarlac will curtail the development of a US$220 million waste-to-energy (WTE) plant and the investment climate in the Philippines.
The Bases Conversion and Development Authority (BCDA) and the Clark Development Corporation (CDC) are poised to shut down the operation of the MCWM, the lone engineered sanitary landfill serving more than 150 local government units and local and private hospitals in the Luzon area for the past 25 years.In a statement, Norbert Plambeck, CEO of Plambeck Emirates, emphasized that the proposed WTE plant would have marked a significant step forward for the Philippines, offering a modern solution to waste management challenges while aligning with global sustainability standards.
Plambeck said the project has the potential to provide a modern solution to waste management challenges while aligning with global sustainability standards.
“We believe that this project could have brought transformative benefits to the Philippines by providing a state-of-the-art waste management concept at par with the best facilities in Europe,” Plambeck said.
The project was designed to be the most advanced of its kind in the Philippines, and crucially, would have been funded entirely by Plambeck Emirates at no cost or risk to the Philippine government.
The WTE plant was intended to serve as a flagship project for sustainable energy development in the country, showcasing modern waste management solutions while contributing to the growth of renewable energy in the country.
Plambeck Emirates Global Renewable Energy LLC — a joint venture between German-based Plambeck and the Royal Family of Abu Dhabi is a leading international investment firm specializing in sustainable development projects.
The proposed WTE plant, designed to be the most advanced of its kind in the Philippines, promised significant benefits including direct foreign investment, job creation, and waste reduction.
It will be recalled that in 2019, Plambeck Emirates and MCWM had submitted an unsolicited proposal to the BCDA for the development of a $220 million 35 megawatt waste-to-energy plant utilizing proven, established technologies they have deployed all around the world.
The 5,000 tons daily volume of waste in Kalangitan is reportedly ideal for the WTE technology’s waste requirements. The Tarlac landfill would also be able to accommodate even a double volume of trash with the presence of WTE technology. After processing, all that remains will be not more than 20 percent of the original garbage volume.
The biggest advantage of WTE is to reduce the supposed volume of waste through safe burning as the pile of garbage is trimmed down to ashes.
ERODING BUSINESS CONFIDENCE
While the project initially received strong support from BCDA, recent developments have raised concerns about the future of the WTE plant.
Plambeck expressed dismay over BCDA’s sudden change in stance, fearing that it could erode investor confidence in the Philippines.
The proposed closure of the landfill and the potential termination of MCWM’s lease, which was signed under the “Foreign Investors Lease Act,” could have broader implications for foreign investment in the country.
In line with this, Plambeck urged BCDA and all relevant stakeholders to reconsider their position and recognize the significant benefits that the WTE project would bring to the Philippines.
“The sudden change in stance by BCDA could have broader implications for foreign investment confidence in the Philippines, especially when long-established contracts and laws, such as the “Foreign Investors Lease Act” (RA 7652), which provides up to 50 years of lease for investment projects, are called into question”.
While Plambeck Emirates remains respectful of the Philippine government and its agencies, Plambeck urges all parties to uphold the sanctity of established laws and contracts, which are fundamental to maintaining a positive and reliable investment environment.
“MCWM is currently only halfway through this period, and any move to terminate the lease prematurely would not only disrupt the planned WTE plant but also other ongoing and planned projects but could also erode investor confidence in the stability and reliability of the investment climate in the Philippines.”
“Our commitment to sustainable development and our desire to support the Philippines with cutting-edge, environmentally friendly solutions remain steadfast. We hope for a constructive dialogue to resolve these issues, ensuring that the Philippines can continue to attract and retain essential foreign investment for its future growth.”
Plambeck expressed his sincere hope that BCDA and the stakeholders will reconsider their position and recognize the significant benefits the WTE project would bring to the Philippines.
