Closure of landfill affects construction of WTE plant

The global leader in renewable energy said the impending closure of Metro Clark Waste Management Corp. (MCWM) in Capas, Tarlac will curtail the implementation of its $220 million waste-to-energy (WTE) facility and negatively impact the investment climate in the Philippines.

The Base Conversion and Development Authority (BCDA) and Clark Development Corp. plan to close down MCWM, the only sanitary landfill serving more than 150 local government units and local and private hospitals in Luzon for 25 years, in October.

In a statement, Norbert Plambeck, CEO of Plambeck Emirates, said the proposed WTE facility would be a significant step forward for the Philippines, offering a modern solution to its waste management challenges while meeting global sustainability standards.

Plambeck said the project has the potential to provide a modern solution to waste management challenges while meeting global sustainability standards.

“We believe this project could bring transformational benefits to the Philippines by providing a state-of-the-art waste management concept on par with the best facilities in Europe,” Plambeck said.

The project was to be the most advanced of its kind in the Philippines and, most importantly, was to be entirely financed by Plambeck Emirates, at no cost or risk to the Philippine government.

The WTE plant was to be a flagship project for sustainable energy development in the country, presenting modern solutions in waste management and contributing to the development of renewable energy in the country.

Plambeck Emirates Global Renewable Energy LLC, a joint venture between the German company Plambeck and the Abu Dhabi Royal Family, 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, was expected to generate significant benefits, including foreign direct investment, job creation and waste reduction.

It is worth recalling that in 2019, Plambeck Emirates and MCWM submitted an unsolicited proposal to the BCDA to build a 35-megawatt, waste-to-energy plant valued at $220 million, using proven, well-established technologies implemented around the world.

The 5,000 tons of daily waste volume at the Kalangitan landfill is reportedly ideal for the waste requirements of WTE technology. With the presence of WTE technology, it would be able to accommodate up to twice the volume of garbage.

After processing, no more than 20 percent of the original volume of garbage will remain.

The biggest advantage of WTE is the reduction of the supposed volume of waste through safe incineration, as the pile of garbage is reduced to ash.

Undermining trust

While the project initially received strong support from the BCDA, recent events have raised concerns about the future of the WTE plant. Plambeck expressed concern about the BCDA’s sudden change of stance, fearing it could undermine investor confidence in the Philippines.

The proposed closure of the landfill and potential termination of the MCWM lease agreement, signed under the Foreign Investors Leases Act, could have wider implications for foreign investment in the country.

Plambeck, therefore, urged the BCDA and all stakeholders to reconsider their position and recognize the significant benefits the WTE project will bring to the Philippines.

“The BCDA’s sudden change of position could have broader implications for the confidence of foreign investment in the Philippines, especially when long-standing agreements and laws such as the Foreign Investors Lease Act (Republic Act 7652), which provides for up to 50-year leases for investment projects, are challenged,” Plambeck said.

While Plambeck Emirates continues to respect the Philippine government and its agencies, Plambeck urges all parties to respect the sanctity of established laws and agreements which are fundamental to maintaining a positive and reliable investment environment.

“MCWM is currently halfway through this period and any decision to prematurely terminate the lease agreement would not only disrupt the planned WTE power plant, but also other ongoing and planned projects, and could also undermine investor confidence in the stability and reliability of the investment climate in the Philippines,” he said.

“Our commitment to sustainable development and our desire to support the Philippines with cutting-edge, environmentally friendly solutions remain unchanged. We look forward to a constructive dialogue to address these concerns, ensuring that the Philippines can continue to attract and retain the necessary foreign investment for its future growth.”