Virac Eyes P83-M Controlled Dumpsite

VIRAC, Catanduanes, Oct. 23- This provincial capital is raising over P83 million to finance the establishment of a controlled solid waste dumpsite within a vast sanitary landfill site at the town's outskirt.

The project that would be in compliance with Republic Act 9003 or the Ecological Solid Waste Management Act of 2000 being enforced by the Department of Environment Natural Resources (DENR) seeks to establish an Integrated Solid Waste Management Facility (ISWMF) within a 2.19-hectare dumpsite in Barangay Casoocan, 10 kilometers from the downtown, municipal Mayor Santos V. Zafe said Friday.

The actual cost of the project is P83.150 million as determined by Woodfields Consultant, Inc. (WCI), a Manila-based private consultancy firm commissioned by the municipal government for P1.5 million to conduct the feasibility study on the establishment of an ISWMF, Zafe said.

To raise this amount, the mayor said the town government has to come up with an P8.15-million equity required to be able to secure a P75-million loan from a government bank. This equity will be used to acquire the landfill site which is a private property and for the cost of organization and management.

Citing the WCI feasibility study, Zafe said P66.7 million of the P75 million-loan would be spent for land development, actual construction and equipment while the remaining P8.315 million would be allocated for the Environmental Impact Assessment (EIA), detailed design and contingency.

The Development Bank of the Philippines (DBP), he said has offered to finance 90 percent of the costs at a fixed interest rate of nine percent per annum payable within 15 years which means, for the P58.5 million cost of the landfill alone, the municipality would have to pay the bank a total of P107,513,656.25 divided in monthly amortizations in varying amounts within the period.

The Philippine National Bank (PNB) is also offering a 10-year repayment period with a two-year grace period at 8.5 percent fixed interest rate. Under its proposal, Virac would pay a total of P110,501,164.81.

Likewise, Land Bank of the Philippines (LBP) has proposed a similar scheme, with total payments to run up to P110,136,555.64 for 10 years, Zafe said.

When any of these loan proposals is taken, according to town councilor Lemuel Surtida, the municipality would have to set aside an average of P11 million per year for the loan amortization that would be taken from its annual economic development fund (EDF).

"Our average yearly EDF is only P15 million and taking away P11 million from it would mean sacrificing the welfare of the barangays that rely heavily on this fund for their development needs," Surtida said.

Actually, the municipal government could do away with spending such gargantuan amount that it actually does not have in hand by following the example of Bolinao, Pangasinan that implemented a semi-aerobic landfill using indigenous materials at a cost of only P1.7 million covering two hectares.

The P1.5 million paid by the municipality for the 114-page WCI feasibility study, Surtida said is also a waste of public fund given the fact that the University of the Philippines was willing to undertake the same study for almost free, with the LGU shouldering only incidental expenses.

"I have told the municipal council about this beforehand, but the council whose majority members were then in favor of the loan did not listen to me and went ahead with a measure for the commissioning of WCI," he added.

Last Monday, Surtida said the council passed the resolution approving the project and authorizing Zafe to negotiate with the banks for the loan.

The majority of the councilors made use as basis for the approval the alleged support and approval of the project by barangay chairmen who were made to sign a document expressing such positions without informing them of the astronomical cost involved, he said.

The resolution was principally sponsored by Councilor Eulogio Talaran Jr. Its co-sponsor, Councilwoman Delia Bagadiong said she had withdrawn her co-sponsorship on hearing of the machinations applied by Zafe and the other council members in promoting the project and despite threats from the DENR to prosecute LGUs who would not comply with RA 9003.

Talaran said the floods unleashed by tropical storm "Ondoy" in Metro Manila and neighboring areas is also being blamed on the LGU's failure to implement the law and the Virac landfill project would preempt a similar calamity in the province.

But Surtida said the problem in Metro Manila was not the landfill but rather the clogged drainage and uncollected waste. "RA 9003 does not mandate the establishment of landfills but mandatory waste management," he stressed. (PNA)