The plant is expected to have a capacity of 6MW, of which 5MW is likely to be supplied to Panay Electric Company under a power purchase agreement, while the remainder is being used to power an industrial complex.

To be built at the Calajunan disposal facility, the plant will be fuelled with 250 of around 300 metric tons of garbage a day being collected by the city.

According to Mayor Jed Mabilog, the contract for the plant is for 20 years and is renewable and the city will receive 5% share of the gross income or around $20,000 a month.

"This joint venture agreement will be beneficial for us especially in helping solve the garbage problem and augmenting the power supply in the city," Mabilog added.