The Tipping Fee for every metric ton of MSW delivered to and accepted by the Company for each Billing Month shall be calculated using the following formula:
Tj = VCj + FCj
where:
Tj | = Tipping Fee for Billing Month j, expressed in PHP per metric ton |
VCj | = Variable Charge for Billing Month j, expressed in PHP per metric ton |
FC1j | = Fixed Charge for Billing Month j, expressed in PHP per metric ton |
Commentary: The tipping fee structure should be clear and transparent. Typically, the tipping fee would have a capital cost (or availability payment) and an operating cost component (which is variable). Fixed payments would be based on the capacity made available to the Agency covering the capital works that are useable. Variable payments would be based on the cost of the actual service and its various elements. The payment to the Company will be equivalent to the tipping fee multiplied by the volume of MSW (in metric tons) recorded on the scales of the weighing system at the entrance of the MRF/TS and the SLF, less the waste transported by the Company from the MRF/TS to the SLF. |