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Posted on Tuesday, May 27, 2003

 

SC decision on Jancom deal  
aggravating garbage problem

By David L. Llorito, Research Head

For most cities of the world, cleaning the streets is just a matter of collecting the garbage, recycling some and dumping the rest in landfills.

For Metro Manila, however, the big cleanup may have to start with the country’s legal system–or at least, the legal trash jam created by the Supreme Court when it upheld the validity of the controversial incinerator project of Jancom International–before the government could thoroughly get rid of the mess on the streets.

Gone are the days when mountains of refuse used to litter the streets of Metro Manila, thanks to Bayani Fernando, who became chairman of the Metropolitan Manila Development Authority (MMDA) in June 2002, replacing Benjamin Abalos.  But according to Gideon Javier, head of the local Clean Air Coalition, “the garbage crisis is still very much with us.”

This time, he says, the garbage collectors are better at collecting and hiding it. Sources say these tons of trash are dumped in Manila Bay in Navotas and Montalban, Rizal.

Apparently these dumps could not accommodate the 6,000 to 8,000 metric tons of garbage generated by the megacity’s 10 million people. That explains the proliferation of illegal dumps all over Metro Manila and its neighboring provinces like Laguna and Cavite. Environmentalists say there are now 27 big illegal dumps and hundreds of smaller ones. 

“Fernando has been very good at cleaning the main streets,” observes Javier. “But disposal has remained an abomination. I bike around every weekend . . . and I can see garbage being dumped behind subdivisions and foothills.”

Threats to people’s health

This problem poses grave threats to people’s health because dumps usually ignite and burn due to methane emitted by decaying organic matter. Most often, scavengers set fire to the trash to reduce its volume so that the limited space could accommodate more garbage where they collect recyclable scrap for sale. Incomplete combustion of this waste generates carcinogenous substances like dioxin and furan.

On assuming the MMDA chairmanship in June 2002, Fernando thought of putting up a 2,000-hectare dump in Quezon Province. On November 11, 2002, however, Quezon Governor Wilfrido Enverga rebuffed Fernando, telling him that his province would rather be “Calabarzon’s food basket” than “Metro Manila’s wastebasket.” Fernando is reportedly scouting for another dumpsite. With this not-in-my-backyard mindset, however, prospects for finding a community that is eager to host Metro Manila’s refuse are nil.

Legal conundrum

Fernando, however, need not have to move heaven and earth to find a new dump if only the Supreme Court–specifically its confusing decision on  Jancom–did not get in the way.

In November 2000 the Pro-Environmental Consortium (PEC), backed by Rethman Recycling–one of the biggest recycling companies in the world based in Germany–won an international bidding for the 25-year build-operate-own Metropolitan Manila Waste Management Project held by MMDA and the national government. Environmentalists like Ana Ugarte (Bantay Kalikasan) and Gideon Javier (Clean Air Coalition) told The Manila Times that the PEC won the bidding fair and square by submitting the lowest bid.

On December 3, 2001, the PEC was given the notice of award after the government’s Interagency Investment Coordinating Committee and the board of the National Economic and Development Authority (Neda) gave its approval. And on December 20, 2001, President Arroyo enthusiastically announced that the country had already found a “long-term solution” to the garbage problem.

On the same day, however, Benjamin S. Abalos, the new MMDA chairman after Edsa Dos, sent a letter to the new solicitor general Simeon V. Marcelo expressing his helplessness in dealing with the “looming [garbage] crisis” due to legal constraints posed by the case filed by Jancom International against the MMDA and the Metropolitan Manila Solid Waste Management Committee (MMSWMC) for not acting on its proposed garbage incineration project.

Jejomar Binay and Robert Aventajado, then the chairmen of MMDA and MMSWMC in the Estrada administration, wanted to wriggle out of the Jancom contract that had been signed by officials of the Presidential Task Force on Waste Management during the Ramos administration.

Binay and Aventajado considered the project too expensive and did not have the approval of government agencies like the Neda. But on May 29, 2000, the Supreme Court decided in Jancom’s favor, prohibiting the MMDA from “disregarding Jancom’s BOT [built-operate-transfer] award contract and making another award in its place.”

The Court also nullified the “resolution of respondent [MMDA] … disregarding the petitioner’s BOT Award Contract and calling for bids for and authorizing a new contract for the Metro Manila waste management . . . .”

Collateral damage

The decision created confusion: the language sounded as if the Supreme Court had given Jancom the monopoly over Metro Manila’s garbage disposal because “authorizing a new contract for the Metro Manila waste management is illegal and void.”

Yet the Court also said it “is not stopping the government from implementing infrastructure projects, as it is aware of the proscription under PD 1818. On the contrary, the Court is paving the way for the necessary and modern solution to the perennial garbage problem that has been the major headache of the government . . . .”

The following questions therefore emerged: What is the implication of the Court’s decision for Jancom vis-à-vis the PEC sanitary landfill project? Is the PEC project considered a “replacement” of the Jancom incinerator project? Would there be legal hitches should the MMDA negotiate and formalize the detailed contract with the PEC?

For Jose Luis Yulo Jr., chairman and president of the PEC, his group’s sanitary landfill project is “separate and distinct” from that of Jancom. He said Jancom’s bid and supposed contract pertains only to the incineration of 3,000 metric tons in San Mateo, Rizal. He noted that Jancom has also acknowledged in a Congressional hearing and its newspaper advertisement that its contract is only for 3,000 tons.

Said Yulo: “Pro-Environment Consortium has undergone a transparent bidding process, invested millions to properly pre-qualify, and has followed all laws and procedures, and should not be prejudiced by Jancom’s problems.”

The Court’s decision could have just simply meant that the MMDA could not award a new contract supplanting Jancom’s and that the PEC project may therefore push through.

Nevertheless, Abalos wanted to be sure, so the MMDA warned in its notice of award to the PEC that the proponents should first clarify the issue with the Supreme Court before it could proceed.

Thus on December 20, 2001, Abalos himself wrote to Solicitor General Simeon Marcelo requesting his office to clarify the issue with the Supreme Court. Marcelo, however, according to environmentalists, sat on the request. He filed his motion for clarification only on May 2, 2002, after the Supreme Court ruled with finality on April 10, 2002, that the Jancom contract is “valid.” Two weeks before that, Marcelo also got another request from the MMDA prodding him to file the motion for clarification.

Legal shocker

Environmentalists say Marcelo’s motion for clarification was one big opportunity to resolve the standoff, thus paving the way for PEC’s landfill project. Specifically, the motion “prayed” for clarification of the waste tonnage over and above the 3,000 metric tons being claimed by Jancom. It could also clarify the status of future projects that might be developed by the government to deal with the garbage problem.

Besides the issue on waste tonnage, other questions raised by Marcelo’s motion for clarification are:  May the government bid out another solid waste management project?  What if the project (which also involves solid-waste management) is not intended to replace respondents’ (Jancom’s) contract, may it be validly done?

But on June 19, 2002, many were shocked to learn that the Third Division of the Supreme Court, which validated Jancom’s incinerator project, had refused to clarify the questions raised by the motion for clarification.

“…[T]he Court resolved to deny the motion for lack of merit,” said the Court’s resolution. “No further pleading shall be entertained in this case . . . .”

Deepening uncertainty

The Supreme Court’s refusal to clarify its confusing decision has raised further questions. In a full-blown garbage crisis, the legal uncertainty would favor Jancom, since the government may be forced to embrace its project if the MMDA could not tap other private groups to handle the problem.

According to a paper prepared by the NGOs Bantay Kontrata and the Citizen’s Network Against Poverty and Corruption, the Third Division that handed a decision favorable to Jancom included Antonio T. Carpio, who was formerly the legal counsel of Vivendi, Jancom’s international partner. Carpio was part of the influential Carpio Villaraza Law offices, whose partners ended up in sensitive government positions when President Arroyo rose to power.

Francisco Chavez, formerly solicitor general during the Aquino administration, said it could mean that the Supreme Court thinks its decision regarding Jancom is clear enough, hence it saw no need to explain it further.

Owing the Court’s refusal to clarify the issue, however, the prospect for the PEC project will remain unclear. And worse, the MMDA will remain clueless whether it could tap other private groups to solve Metro Manila’s garbage problem.

Given this uncertainty, two possible options present themselves.

One, the PEC and the MMDA may push on with the project at the risk of a lawsuit by Jancom or other parties. If that happens and reaches the Supreme Court, Chavez says, the Court will be forced to resolve the issue. The result of this option is uncertain, probably the reason why the MMDA would no longer touch the PEC landfill project.

Two, the MMDA may interpret the Court’s decision to mean that Jancom indeed has a monopoly of Metro Manila’s garbage disposal but will not carry it out, because the President did not sign the contract. Since the MMDA cannot carry out either the Jancom or the PEC project, it will keep on trying to find an alternative dump that will be built and run by the MMDA, granting it can find the money to finance it alone. That is what Fernando is doing. Failing that, he will probably “solve” his garbage headache by sitting it out until his term ends.

In desperation, the PEC may sue the MMDA for not carrying out a project that it won fair and square in a competitive bidding. It could cite the Supreme Court’s resolution as self-evident proof that the PEC’s project is “distinct and separate,” since the recent ruling by the Court could be interpreted either for or against the project. The outcome of the process would again be another long years of legal tussle.

Either way, the losers in this legal play will be Metro Manila residents who are going to be swamped with garbage the moment the dumps, legal or otherwise, are filled to capacity.

Meanwhile, as Gideon Javier has said, “The garbage crisis is still very much with us.”

    
 
 
 

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Francis Andaya, Judee Perculeza, Marizhen Doctora, Shey Silayan
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