BAGUIO CITY – The city council in a resolution has confirmed the termination or rescission of the Memorandum of Agreement (MOA) between the city government and Rapid Process Inorganic Technology (RAPPORT) Innovation Corporation effective June 30, 2021.
This, after Rodrigo Guerrerro, RAP-PORT Chairman and CEO, wrote to Mayor Benjamin Magalong informing the latter that the company is “regretfully” terminating the MOA.
With the company’s voluntary termination, the rescission of the MOA is now upon the mutual agreement of both parties, the council resolution stressed.
In his letter to the city council dated May 7, 2021, Mayor Benjamin Magalong urged the legislative body to confirm the termination of the MOA as the company allegedly failed to fulfill its obligations which include the implementation of an effective system that will control or treat the leachate that is generated during biological waste operations, causing nearby residents to complain about the stench coming from the facility.
The executive department’s decision to terminate the MOA emanated from the reports prepared and site inspections conducted by the General Services Office (GSO).
The city council decided to invite RAP-PORT, the GSO, and the City Legal Office for a forum in aid of legislation.
During the forum, General Services Officer Eugene Buyucan reported that the company failed to construct a drainage system and a waste water tank to control the leachate coming from the Environmental Recycling System (ERS) machines and also failed to introduce a special technology for the treatment of wastewater.
Likewise, the report indicated that the company was not able to maintain the condition of the ERS machines.
All of the aforementioned obligations, which the company allegedly failed to fulfill, are stipulated in the MOA that was signed by both parties in 2018.
Atty. Richard Dayag, Acting City Legal Officer, said the city government has the right to terminate the contract for “gross violation or gross neglect of obligations” and “abandonment of the Materials Recovery Facility (MRF) or the Environmental Recycling System (ERS) machines” as stated in Article 10 of the MOA.
The council resolution stipulated that RAP-PORT shall voluntarily vacate the site on July 1, 2021 and turnover the premises to the city government through the GSO.
Furthermore, the company has agreed to continue to manage and operate the facility from July to August 2021 as per the letter of Buyucan.
(JGH-SP/ABN)
May 17, 2025
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