NAGA, Cebu, Philippines – The Cebu provincial government entered into a Memorandum of Understanding with Kepco Salcon Power Corporation (KSPC) and FDRCon Co. Inc. for the proper disposal of the coal ash generated in KSPC’s coal-fired power plant in Naga City.

The KSPC is at risk of shutting down its 200 megawatt coal-fired power plant providing power to Cebu province due to the lack of a storage facility for its coal ash effluent.

The Balili property, which was supposed to be used as the landfill facility for the coal ash, is still under litigation so the KSPC has been using the ash silo within their premises to contain their waste product.

In December, however, KSPC Vice President Jong Woo Moon disclosed that the KSPC ash pond is already reaching its capacity.

The Cebu provincial government has exclusive rights over said coal ash effluent as agreed in an “Ash Disposal Agreement” signed in 2009. With such consent, the coal ash from the plant will be delivered to an ash landfill facility owned by FDRCon which can accommodate up to 180,000 cubic meters of ash.

KSPC will be paying the provincial government $1 per metric ton that will be delivered to the FDRCon facility.