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CDC unable to extend landfill contract due to limitations, planned development

The CDC announces its inability to extend or renew the contract with MCWMC due to contractual limitations and planned development initiatives by the Bases Conversion and Development Authority (BCDA) for New Clark City.

In a letter dated April 30, 2024, BCDA President and CEO Joshua Bingcang stated, “The Bases Conversion and Development Authority (BCDA) is keen on the development and increase of the economic value of the 100-hectare land area currently covered by a Contract for Service with Metro Clark Waste Management Corporation (MCWMC) located in the New Clark City.” 

“We are considering several options on rehabilitating the land, noting that the sanitary landfill is potentially encroaching on the expansion areas of the developable lands adjacent to it. For this purpose, we wish to inform you that the Agreement with MCWMC is set to expire on 9 October 2024, resulting in the closure of the sanitary landfill, with no possibility of extensions,” BCDA President Bingcang added.

“At the expiration of the Contract for Service, MCWMC should promptly vacate and deliver the property inclusive of all new constructions and improvements introduced during the term of the Contract to  the Clark Development Corporation,” BCDA’s CEO Bingcang further said.

Per the legal counsel from the Office of the Government Corporate Counsel (OGCC), extending the contract between CDC and MCWMC beyond October 2024 would violate the Build-Operate-Transfer (BOT) Law, which governs the bidding and awarding process for the project.

Nonetheless, the CDC is pursuing alternative waste management solutions and procuring the services of a garbage collector for Clark within its jurisdiction, the Clark Freeport Zone, and the Clark Special Economic Zone. Additionally, the CDC will accredit service providers for its locators/investors, ensuring designated disposal facilities for hazardous and non-hazardous waste.

Moreover, the Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB) Region III reported existing facilities in Pampanga that could accommodate Clark’s waste upon MCWMC’s contract expiration.