Cebu City garbage deal: Supplier says P470M price tag is no price hike
CEBU CITY, Philippines – The supplier behind the proposed P470-million garbage-processing system for Cebu City is pushing back against claims of a P220-million price jump, insisting that the earlier and latest offers carry the same price and capacity. The difference, according to Engineer Victoriano Ocon of Suki Trading Corp., comes down to one thing: whether the city wants its trash sorted by hand or by machine.
Ocon, who also heads Vic Metal Fabrication and Environmental Services Inc., said the two proposals discussed in the City Council are simply different configurations of the same system. The first, tied to Vice Mayor Tomas Osmeña, used manual segregation. The second, linked to Mayor Nestor Archival's office, relies on automated sensors to sort waste faster and with fewer workers.
“Same capacity, same price,” Ocon said in a mix of English and Cebuano, adding that the company never raised its rates. He said the city government must now decide which setup fits its priorities and budget.
Why did the price appear to jump from P250M to P470M?
During a recent council session, Vice Mayor Osmeña revealed he had received a P250-million quotation from Suki Trading back in January. But a September 22 letter from the supplier to Mayor Archival placed the project at P470 million. Osmeña, who had personally inspected the site and equipment, questioned the sudden increase.
Ocon explained that the two offers were prepared for different audiences. Osmeña's version involved manual segregation, where workers would pick through waste on a conveyor belt. The Archival version included automatic segregation machines that use sensors to sort trash, allowing the city to process more waste in less time.
Councilor Harry Eran also weighed in, noting that the earlier proposal was meant for the North Reclamation Area, while the latest one includes two automatic segregators and two Advanced Waste Solution units (AWS-EPCD500) that could be placed at the South Road Properties or another site. “I think that's where the price difference comes from,” Eran said.
What does the P470M proposal actually include?
The latest offer covers the supply, delivery, installation, testing, and commissioning of two AWS-EPCD500 units, two automatic segregation machines, pollution-control devices, accessories, and a covered steel shed. Each AWS-EPCD500 can process 10 tons of mixed municipal solid waste per hour, while each segregator handles 12.5 tons per hour. Together, the system could process up to 700 tons of mixed waste over a 20-hour operating day.
Ocon described the technology as gasification, a thermal process similar to pyrolysis but distinct from incineration. Segregated residual waste would be converted into ash, which could potentially be used to make hollow blocks. The system includes a cyclone reactor and scrubber to clean emissions, and Ocon said the company has laboratory tests and documents proving it meets environmental requirements.
Who else is using this technology?
Ocon said similar systems have been purchased or deployed by Lapu-Lapu City and Malolos City, and the company also serves institutional clients. His firm received the 2026 Presidential Filipinnovation Award for its gasification process, including P3.5 million for research and development. Part of that work involves converting the heat from the process into electricity using a steam generator.
What happens next for the Cebu City garbage project?
The City Council voted to return Suki Trading's letter of intent to the Mayor's Office, along with the observations raised during the session. The move neither approves nor rejects the project. Councilors Franklyn Ong and Mikel Rama argued that the executive department should first study the proposal before the council takes any responsibility for technical details or warranties. Councilor Alvin Arcilla noted that, as far as he knew, the project had no budget yet.
Ocon said the company is offering the technology and equipment, not taking over the city's waste operations. The system comes with a one-year warranty, and the company would help operate it initially as part of a technology transfer. After that, the city can decide whether to run it privately or on its own, with the company available for supervision and maintenance if needed.
For now, the ball is in the Mayor's Office court. The city must weigh its priorities, its funds, and its appetite for automation in the ongoing fight against Cebu City's garbage crisis.