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New bidding set for Inayawan landfill

First Posted 12:38:00 02/11/2009

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CEBU CITY, Philippines - An attempt to bid out the operations and management of Cebu City?s Inayawan Sanitary Landfill failed on Tuesday after the two companies that showed interest in the project did not comply with all eligibility requirements.

Manila Power failed to present updated financial statements, while FDRCON Company was represented in Tuesday?s bidding session by an affiliate company, City Administrator Francisco Fernandez said.

Because no qualified entity was left to bid on Tuesday, City Hall has scheduled another meeting among potential bidders on February 17.

Both Manila Power and FDRCON were welcome to reappear in the next meeting as long as they were able to comply with eligibility requirements. Other companies are also welcome to participate.

Tuesday?s meeting and the rescheduled meeting on February 17 are the first phase of the bidding process wherein entities who express interest in the project are examined by City Hall officials based on their face value, determined by the eligibility requirements outlined by the city government.

City Hall aims to privatize the management of the Inayawan Sanitary Landfill to increase efficiency and allow the city to save on operations costs.

Fernandez said one of the requirements for eligibility was for a bidder to present its financial statements in the past five years. Manila Power only presented financial statements up to 2006.
Another requirement was that the company that bought bidding documents from City Hall must be the same company that shows up during the bidding process.

Fernandez said FDRCON earlier bought bidding documents, but was represented by another company on Tuesday.

Other requirements include the ability of an interested bidder to pour in an investment of at least P150 million for the Inayawan landfill. The bidder must also be able to operate the landfill for seven years, accepting both biodegradable and non-biodegradable wastes, Fernandez said.

Also, if the winning bidder is able to gain a profit from its operation of the Inayawan landfill, the bidder must share a part of this with the city government.

Phase two of the bidding process involves a more comprehensive evaluation of the bidders, which includes analysis of the bidder?s financial statements and experience.

Once a winning bidder is decided, the contract will be scrutinized by the City Council before a formal agreement is reached between the bidder and the city government.

The winning bidder must be able to follow the Kyoto Protocol, an international treaty on climate change aimed to stabilize the amount of greenhouse gases in the atmosphere.

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