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Bacolod City, Philippines Thursday, May 3, 2012
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Garbage privatization
bids opening set

BY CHRYSEE SAMILLANO

The opening of bids for the privatization of garbage collection and hauling services in Bacolod City will be held on Monday, Bacolod Councilor Al Victor Espino said yesterday.

However, no one has obtained bid documents yet as of yesterday, he said. But they hope that someone will during the opening of bids on Monday, he added.

Bids and Awards chairman Goldwyn Nifras said that if there are no bidders, a failure of bidding will be declared. If there is a failure of bidding, they can be directed by the mayor to conduct another bidding and if there will be a failure again that will give the city an option to enter into a negotiated contract with whoever is qualified, he said.

The last day for the submission of bids is also Monday, he added.

Nifras said the winning bidder should comply with their terms of reference which include track record in hauling experience and services, capacity and number of trucks, transfer station, motorpool, communication equipment and number of personnel.

The contract cost is P72 million while the contract period covers eight months.

Nifras said it is the policy of Mayor Evelio Leonardia, with the support of the Sanggunian, to privatize garbage collection because a project study showed that the city will have savings and a more efficient garbage collection, he said.

Espino said an executive-legislative caucus will be held tomorrow on the project study regarding the Bacolod City garbage collection and hauling services submitted by City Administrator Rogelio Balo, Josephus Cerna of the City Engineer’s Office, Honey Bee Borromeo of the City Planning and Development Office, Elma Advincula of the Office of the Building Official and himself.

PROJECT STUDY

The project study submitted by the mayor to the Sangguniang Panlungsod as early as last month was in compliance with a colatilla of the Council when it passed the 2012 annual budget, he said.

When the SP approved the annual budget it required the mayor to submit the rationale behind his intention to privatize garbage collection, he added.

Based on the findings of the study, the project research team recommended the privatization of the city garbage collection and hauling and that the ceiling price will be P448 per cubic meter.

A comprehensive review of the operations of the DPS from 2006 to 2010 disclosed that the present resources for garbage collection and disposal of the DPS is not sufficient in number to ensure a total clean-up of the city’s solid wastes, it said.

The study also showed that the last 5-year operation of the city’s garbage collection and hauling services exhibited operations losses at an average of almost P52.5 million per year and is subsidized by the city government. This does not include depreciation costs of heavy and garbage collection equipment, it said.

OPERATING EXPENSES

While the garbage fees averaged at P12.5 million per year for the last five years, the operating expenses averaged P64 million per year, forcing the city government to subsidize the enormous differential for the DPS operation, the study added.

Espino said “For us to attain 100 percent garbage collection efficiency, our cost per cubic meter is P154.5 million, based on the cost benefit study.”

This translates to P640 per cubic meter for the city, he said. “If we privatize garbage collection with a ceiling of P448 per cubic meter, we will be paying the contractor P108,203,200 or a cost benefit savings of P46,372,800 per year,” he added.

SEGREGATION

Espino said Councilor and Association of Barangay Captains president Mona Dia Jardin is urging the 61 barangay captains to comply with R.A. 9003, especially the implementation of garbage segregation.

He appealed to the people to learn how to segregate garbage, adding that this needs everybody’s cooperation.

Espino said the two cities that have complied with this provision of R.A. 9003 are Marikina and Olongapo.

Meanwhile, Espino said that except, for the drivers of the Department of Public Services, they will ask the private contractor to prioritize the plantilla and job order casuals of the DPS as they can be utilized in the Materials Recovery Facility and the Environment and Natural Resources monitoring teams that they will establish.*CGS

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