- Waste-to-Energy Project another step closer to reality
THE 21ST City Council authorized the release of P11 million from the city’s General Fund to cover a bid bond required to participate in the Department of Energy’s (DOE) special auction round for waste-to-energy (WTE) projects.
The funds, sourced from the General Fund Proper Guarantee Deposits Account, will be used to post a bond of P1 million per megawatt for the proposed 11-megawatt WTE facility.
Genevieve Gamueta, assistant project manager for the Davao City Waste-to-Energy Project, presented the ordinance during the 36th regular session on Tuesday, Sept. 8.
The measure was taken up under suspended rules as Gamueta said the DOE notice of the final list of qualified bidders for the auction round was received late Friday, Sept. 4.
To note, the city council passed an ordinance on June 10, authorizing the city government to apply for and participate in the DOE Green Energy Auction Program (GEAP) special auction round for WTE.
DOE began registering qualified suppliers on May 25, 2026, to open activities for the 230-megawatt auction dedicated to thermal combustion WTE technology.
The Special Auction Round for WTE was launched on Dec. 30, 2025, covering a total capacity of 230 MW, with delivery scheduled between Sept. 1, 2028, and March 31, 2029.
Davao City aims to secure around 10 to 11 MW from the pool, matching the required output capacity of its proposed WTE facility. However, the local government would only submit the bond after determining this at a pre-bid conference scheduled for Sept. 15.
If participation is viable, it will submit the bid bond on Sept. 23, which is the submission deadline.
“The pre-bid conference is scheduled on the 15th of September, so that’s this Monday. So during the pre-bid conference, of course, the bidders will talk if this is viable, and if it’s not viable, then we will not continue to go with the auction itself,” Gamueta told the city council.
Councilor Diosdado Angelo Mahipus Jr. questioned the city’s obligations should it win the auction.
Under the DOE process, the winning bidder must post a separate performance bond estimated at 3 percent of the project’s construction cost or roughly P114 million. Per the requirement, the city government must complete the facility within three years or forfeit the bond.
In response, Gamueta said the Project Management Office would not proceed to the final bidding stage if the project is not deemed viable. Davao City officials would also be consulted at each stage of the auction.
Gamueta said participating in the DOE auction could secure an electricity sales price of up to P9.29 per kilowatt-hour for power generated by the WTE plant. This would allow the city to lower its garbage tipping fee, currently capped at P1,500 per ton, to roughly P700 per ton.
“If we participate in the auction, we could get as high as P9.29, depende sa atong pag-bid. It can be P8-9, and so on and so forth. The higher the price we get, the lower our tipping fee per ton of garbage,” she stressed.
Japan-based Crown Agents Consultancy assisted with the computation. The Japanese government backed the proposed WTE facility with a 5-billion-yen grant.
Councilor Danilo Dayanghirang said, “I think we are on the right track.”
“At the end of the day, this is P11 million versus the cost of our expenditures in maintaining garbage collection, among others. And this is recycling from garbage to energy; it’s not just by throwing it,” Dayanghirang said.
The facility is eyed to have a capacity of 600 tons of garbage per day, which falls short of the city’s current daily output of about 800 tons.
Councilor Danilo Dayanghirang said the city must also consider other players in handling the remaining waste volume.
The council approved the ordinance, requesting that project proponents further develop the rationale for the project, in consultation with the City Legal Office and project consultants.
