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The Cebu Provincial government is expected to earn at least $1 million for allowing Korean Electric Power Corp. (Kepco) to dump coal ash in a government-owned lot in Naga town in southern Cebu.
The Cebu Provincial Board (PB) has authorized Gov. Gwendolyn Garcia to enter into a memorandum of agreement (MOA) with Kepco officials today for the use of the provincial government- owned Balili resort as a dumping area for the accumulated coal ashes once 200- megawatt Kepco power plant becomes operational in Feb. 2011.
But the province will collect a fee of $1 dollar per ton of ash from Kepco, said Rory Jon Sepulveda, Capitol consultant on information and revenue generation.
At the same time, Sepulveda said the provincial govenrment could also use the ashes to fill the swampy portion of the 25-hectare Balili beach resort.
“Instead of buying filling materials, kita pay bayaran sa atong pagdawat sa filling materials (we will be paid to receive the filling materials),” Sepulveda said yesterday.
Vice Gov. Greg Sanchez said coal ash, if mixed with limestone, is a very good filling material and is as durable as cement.
Sepulveda said Kepco officials offered to pay in advance $500,000 after the signing of the MOA for the project.
The $500,000 balance will be paid in two tranches. The P300,000 will be given when the Capitol issues the notice to proceed and the payment of $200,000 will in February 2011 when the Kepco plant starts operating.
Some PB members raised concerns over the environmental and health hazards of project.
But Board Member Peter John Calderon assured that environmental and health measures would be complied with.
“We can even require Kepco to cover the ashes while in transit,” he said.
An embankment will be established to prevent coal ashes from flushing into the sea.
Board Member Agnes Magpale said Kepco needed the signed MOA as a requirement for their loan application with the South Korean government which is very “sensitive” of environmental concerns.
“How they will dispose coal ashes is one of the requirements in their loan application,” she said.
Meanwhile, Sepulveda said projections from experts of the Municipal Planning and Development Office showed that it would take at least 25 years for the 25-hectare property to be filled up./Reporter Doris C. Bongcac
