The City Government and Korean firm Dream Engineering Company Ltd. signed a memorandum of agreement February 5 for the establishment of a waste to energy project in Calajunan disposal facility.
Signing the deal were Mayor Jed Patrick E. Mabilog and Dream Engineering Chairman Youn Pyo Hong.
“This joint venture agreement will be beneficial for us especially in helping solve the garbage problem and augmenting the power supply in the city,” Mayor Jed said.
The city is collecting around 300 metric tons of garbage daily and 250 metric tons of it will be used as fuel to the project.
More than six megawatts is expected to be generated: one megawatt can be used to light up the industrial complex while five megawatts can be sold to Panay Electric Company under a power purchase agreement.
The mayor said contract for the solid waste-to-energy plant is for 20 years and is renewable. The city will get five percent share of the gross income or roughly $20,000 monthly.
