Mandaue City Poised for Major Savings in Waste Management Deal
The Mandaue City Government is on the verge of significantly reducing its garbage disposal expenses, with potential savings of up to P2,000 per ton, as it advances toward finalizing a compromise agreement with Asian Energy Systems Corporation. This development, highlighted by Councilor Joel Seno, chairperson of the City Council’s Committee on Appropriation, Budget and Finance, marks a critical step in addressing the city’s waste management challenges while curbing financial burdens.
Progress in Negotiations and Financial Implications
According to Seno, the proposed settlement has gained momentum following preliminary discussions led by Carlo Fortuna during the council session on April 13, 2026. The compromise agreement has already been thoroughly reviewed, with nearly all invoices under consideration. However, one invoice amounting to approximately P267,000 remains pending approval due to the absence of a covering contract.
Seno emphasized that the city is eager to wrap up the agreement promptly to enable direct transactions with Asian Energy. “We are ready to proceed. The City Council has already granted Mayor Thadeo Jovito ‘Jonkie’ Ouano the authority to negotiate and sign the compromise agreement, so hopefully this will be finalized soon,” he stated. This move is expected to partially resolve the city’s garbage disposal issues while delivering substantial cost reductions.
Substantial Cost Reductions and Operational Benefits
Currently, Mandaue City pays between P3,000 and P3,200 per ton for waste disposal. With the new agreement, the rate could revert to the original P1,200 per ton, translating to savings of roughly P2,000 per ton. This reduction stems from eliminating the need for a third-party contractor, allowing the city to deal directly with Asian Energy Systems Corporation.
“If this is settled, we can directly transact with them and there will be no need for a third party. That means we save a lot,” Seno added. The initiative aims to avoid prolonged and costly legal proceedings over unpaid waste disposal obligations, offering a pragmatic solution to the city’s financial and administrative woes.
Legal Standing and Future Steps
The compromise agreement, once signed, will carry the same legal weight as a court judgment, despite not being court-mandated. Seno explained, “By signing the compromise agreement, it will have the force and effect of a judgment. It is not court-mandated, but it is the initiative of both parties to avoid long and expensive litigation.” After finalization, the agreement will be submitted to the court for formal approval, ensuring its enforceability and legitimacy.
For city officials, this settlement represents both financial relief and a viable approach to managing Mandaue’s waste effectively. Seno described it as “administratively viable” and a means to achieve a fair resolution. The City Government anticipates that the agreement will soon lead to lower waste disposal costs and help stabilize garbage collection operations, enhancing public services and fiscal responsibility in Mandaue City.
