Revisiting the Financial Implications of Waste-to-Energy in Davao City is Necessary.
In Davao City, the long-haul Waste-to-Energy (WTE) project is currently undergoing a financial review due to ongoing implementation delays.
Lawyer Tristan Dwight Domingo, the assistant city administrator and WTE project manager, stated on April 25, 2025, that the city needs to reassess the financial projections to check if the project remains viable in terms of affordability and revenue potential.
To ensure the WTE project still makes financial sense, a short feasibility reassessment will be conducted to reevaluate its financial implications. This evaluation will determine whether the project continues to be a practical investment for the local government.
Previously, Councilor Temujin "Tek" Ocampo informed the Committee on Environment and Natural Resources on March 4 that the city is collaborating with the Japanese government through the Japan International Cooperation Agency (Jica) to progress the WTE project. The project may be implemented either through a Build-Operate-Transfer (BOT) scheme or a Public-Private Partnership (PPP), with the Japanese government funding the construction while the Davao LGU handles permits and land acquisitions.
The Department of Environment and Natural Resources-Davao Region (DENR-Davao) announced on July 16, 2024, that the project was ready for implementation but still awaited approval from the National Economic and Development Authority (Neda). A budget had been assigned for the project, but the funds lapsed due to pending approval from Neda's Investment Coordination Committee (ICC).
For years, councilors in Davao City have been hopeful that the WTE project would provide a long-term solution for the city's landfill crisis. Back in May 2024, Councilor Ocampo revealed that an Australian firm showed interest in building a 50-megawatt WTE facility, more than four times the capacity of Jica's proposed 12-megawatt plant. However, Councilor Louie John J. Bonguyan added that the project would strictly adhere to environmental regulations for waste burning.
Despite assurances of environmental protection, the Davao-based environmental group Interfacing Development Interventions for Sustainability (Idis) expressed concern about the WTE project posing risks to both the environment and public health, even with the use of non-incineration technology. They advocate for alternative waste management strategies focused on segregation and enforcement of environmental policies.
Insights:
- The WTE project could still pose environmental and health risks, even with the use of non-incineration technology.
- Advocates propose alternative waste management strategies based on waste segregation, recycling, and proper disposal for a more sustainable and healthier solution.
- The long-haul Waste-to-Energy (WTE) project in Davao City is under a financial review due to delays in implementation, and a feasibility reassessment is being conducted to re-evaluate its financial implications.
- The city of Davao is collaborating with the Japanese government, funded by the Japan International Cooperation Agency (Jica), to progress the WTE project, which may be implemented through either a Build-Operate-Transfer (BOT) scheme or a Public-Private Partnership (PPP).
- The Department of Environment and Natural Resources-Davao Region (DENR-Davao) had announced that the WTE project was ready for implementation but still awaited approval from the National Economic and Development Authority (Neda), causing a budget lapse due to pending approval from Neda's Investment Coordination Committee (ICC).
- Councilor Temujin "Tek" Ocampo had previously mentioned that an Australian firm showed interest in building a 50-megawatt WTE facility, more than four times the capacity of Jica's proposed 12-megawatt plant, which councilors in Davao City had been hopeful would provide a long-term solution for the city's landfill crisis.
- Despite assurances of environmental protection, the Davao-based environmental group Interfacing Development Interventions for Sustainability (Idis) expressed concern about the WTE project posing risks to both the environment and public health, even with the use of non-incineration technology.
- Advocates propose alternative waste management strategies focused on waste segregation, recycling, and proper disposal as more sustainable and healthier solutions compared to the WTE project.
