Monday, January 30, 2012

German firm withdraws investment in Davao

By Jereco O. Paloma
Monday, January 30, 2012


DAVAO CITY – A German company pulled out a US$1 billion investment that was supposed to expedite the Waste-to-Energy (WTE) facility project in this city.


Herhof of Germany offered to invest in the city for a facility that would convert wastes to power, which the city can sell to a power distribution company.


City Mayor Sara Duterte did not go into the details on why Herhof backed out when the city has already sent two of its councilors to Germany to look into the feasibility of the proposed partnership.


The City Council earlier approved an ordinance authorizing the mayor to sign for and in behalf of the City Government the memorandum of understanding (MOU) with the Herhof for the proposed project.


Based on the passed ordinance, the technology that Herhof is offering to the city will lessen the detrimental effects of released greenhouse gases to the environment and will produce clean energy from waste.


The city will not also be spending anything for the establishment of the plant, as the main counterpart of the city is the area where the plant will be built.


In November 2011, Duterte sent Councilors Marissa Salvador-Abella and Arnulfo Cabling to Germany to look into Herhof's waste-to-energy technology. Herhof paid for their trip.


Abella and Cabling chair the council's committees on environment and housing and urban development, respectively.


After their visit, the councilors attested the effectiveness and efficiency of the waste-to-energy facility.


Despite the move of Herhof, Duterte remained unfazed because she said more foreign investors are interested to partner with the City Government on the same project.


The mayor added that 10 foreign investors have so far submitted proposals to pursue the WTE project in the city.


She added that the one with the best initial proposal yet is a Korean firm. But unlike Herhof’s proposal, the facility the Korean firm is offering would cost the city up to US$750 million. (Sun.Star Davao/Sunnex)


Published in the Sun.Star Davao newspaper on January 31, 2012.

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