HCMC will select waste treatment firms via tenders to keep prices at reasonable levels, save the State budget and ensure a fair business environment for enterprises in the sector, heard a meeting of the city government on February 10.
The city government told the Department of Natural Resources and Environment to propose viable plans for such tenders soon to prevent monopoly and violations against the Competition Law.
Under the competition law, the prices of all public products and services are set by the State. However, HCMC’s negotiations over the prices with Vietnam Waste Solutions (VWS) for waste treatment at Da Phuoc integrated waste management facility in Binh Chanh District have gone against the law.
According to the city government, the unreasonable issue should be solved early to avoid losses for the State budget and ensure that public services are to serve people.
Therefore, the HCMC Department of Natural Resources and Environment is assigned to propose bidding plans based on the law, Decree 130 and the conclusion of the city’s Party Committee. Besides, the department has to review the contract signed with VWS on February 28, 2006 to adjust it.
In 2002 and 2007, when Dong Thanh and Go Cat landfills were overloaded and stopped getting garbage, the city government started to call for investors to take part in waste treatment.
Since 2007, HCMC has had some new waste treatment facilities invested by foreign and local firms such as the solid waste treatment plant worth US$64 million of Vietstar Co. in Cu Chi District, the VND774-billion Tam Sinh Nghia plant also in Cu Chi and Da Phuoc facility worth over US$90 million of VWS in Binh Chanh District.
Besides, there is a landfill at Phuoc Hiep waste treatment complex in Cu Chi District developed by the HCMC Urban Environment Co. at a cost of VND976 billion. Its daily treatment capacity is 2,000 tons of garbage.
VWS has recently proposed increasing the daily treatment capacity of Da Phuoc complex from 3,000 tons to 10,000 tons.
Responding to VWS’s proposal, the city government said in a document sent to the Department of Planning and Investment on January 21 that VWS treats 3,000 tons of garbage per day and is regarded to dominate the waste treatment market in HCMC.
VWS’s capacity increase would result in monopoly in waste treatment. The trash treatment price for VWS is US$3 per ton, higher than other firms, the city government’s document said.
Explaining the high treatment price, David Duong, Chairman and CEO of California Waste Solutions, Inc., (CWS), the owner of VWS, said in a document sent to the city that VWS got such a price because after the facility stops taking garbage, the firm will receive no penny from the city but continue to treat odor, wastewater and gases, which will require huge cost.
VWS will also build an ecological playground on the landfill.
Duong added the waste treatment price is based on technological investments and thus there are different waste treatment prices.
Regarding Phuoc Hiep landfill in Cu Chi, deputies of the HCMC People’s Council said that the landfill’s possible closure results from complaints by locals. However, according to the deputies, if the environment at the landfill improves, relevant agencies should ask the city to reconsider the decision to close the landfill.
The shutdown will cause losses of VND400 billion and leave 300 workers jobless.
