Mandaue City is finally paying its garbage bill — and it's been a long time coming.

The City Council has approved a compromise agreement that will see the local government pay ₱9.3 million to Asian Energy Systems Corp. (AESC), the operator of the Consolacion landfill. The money covers waste disposal and hauling services that the city never paid for, some going as far back as 2016.

The case was pending before Branch 274 of the Regional Trial Court in Parañaque City, where AESC had filed a claim against Mandaue. Mayor Thadeo Jovito “Jonkie” Ouano now has the green light to sign the deal.

Councilor Carlo Fortuna, head of the Committee on Laws and Ordinances, admitted the city owed the money. He said the unpaid obligation started in 2016 and even earlier. The city didn't pay at the time because, according to Fortuna, the operator's requirements had alleged deficiencies.

But the settlement isn't just about clearing a debt. Once signed, Mandaue can go back to dumping its trash at the Consolacion landfill — a facility it stopped using after the payment dispute.

“Atoang gi-admitar nga aduna gyud tay obligasyon nga mobayad sa Asean Energy tungod sa paghatud sa basura nato. Apil sa agreement is that once mapirmahan na [compromise aggreement], balik na ta og dispose didto so i-allow na pod ta,” Fortuna said on Monday, June 15.

(We admit that we indeed have an obligation to pay Asean Energy for hauling our wastes. The agreement partly stipulates that once it's signed, we can return to disposing of our wastes in the Consolacion landfill.)

Since the payment stalled, Mandaue had been sending its garbage to the Binaliw Landfill in Cebu City. But after a deadly trash slide in January 2026 shut that facility down temporarily, the city had to hire private third-party haulers to take its waste to Consolacion anyway — at a much higher cost.

“Makatabang gyud ni nato sa atoang problema sa disposal sa solid waste. So mao na essentially rason ngano'ng ang konseho mihatag og authority sa atoang mayor to sign the compromise agreement,” Fortuna added.

(This will really help us amid our problem in solid waste disposal.)

The deal is meant to be a win-win. For the city, it avoids the risk of a court judgment that could pile on legal interest, penalties, attorney's fees, and damages — making the ₱9.3 million look like a bargain. For AESC, it finally gets paid for services it already rendered years ago.

But the money won't flow immediately. Any payment must still pass Commission on Audit (COA) rules and standard government auditing procedures. The city will also need a supplemental budget to appropriate the funds. Once both parties sign, the agreement goes to court for approval. Only after that, and after all documentary requirements are met, will AESC see its money.

The committee reviewing the deal said it serves both parties' interests. For Mandaue, it's a cost-effective way to end a legal headache and fix a waste problem that's been piling up — literally.

  • Amount: ₱9.3 million
  • Debt dates back to 2016 and earlier
  • Creditor: Asian Energy Systems Corp. (AESC), operator of Consolacion landfill
  • Case pending at RTC Branch 274, Parañaque City
  • Mandaue had been using Binaliw Landfill, then costly third-party haulers after January 2026 trash slide