“Sustainable

Sustainable Investments In Waste

Management Infrastructure”

Efficient Land Use for Sustainable Cities

Asian Clean Energy Forum , 18 June 2009
Asia Development Bank
Presented by
Ricky Beltran
Cities Development Initiative for Asia
 Republic Act 9003
Ecological Solid Waste Management Act of 2001

• Enactment January 26, 2001

• Unimplemented Provisions to Date
1. SWM boards and 10-year SWM plan;
2. closure of open dump sites by 2004 and
establishment of fully operational sanitary
landfills byy 2006;
3. comprehensive source reduction and recycling
at the barangay (community) level;
4 LGUs manage their own systems; and
4.
5. widespread regulatory reforms.
 Integrated Clark
Waste Management Center
• 100 h
hectares
t (70 h
ha. L
Landfill,
dfill 10 h
ha recycling
li
center, 5 infrastructure and 15 ha buffer
zone)
• 80 kms from Manila at Clark Economic Zone,
Capas, Tarlac
• Capacity: 20 million tons maximum; 1000 to
3000 tons daily
• Started
St t d in
i 2001
2001; operate t 25 years
• Investment Cost: US$ 6.7m (10 ha module)
• Tipping Fee:
Fee $48.00
$48 00 per ton
 Obstacles to RA 9003
• Huge Capital Expenditures
ƒ Clark: P32 million per hectare excluding cost of land
ƒ Very expensive land in urban centers
• Expensive Operating Costs:
ƒ Hauling: P7000 per 10 ton truck from Manila
ƒ LGU Disposal: P800/ton tipping fee (Angeles City
P 60 million debt)
ƒ Landfill disposal: P200 per ton
• Si
Single
l RRevenue S
Source: Ti
Tipping
i F Fees
• NIMBY Mentality: “Not In My Back Yard”
Sustainable Infrastructure Solutions
• Remediation and Upgrade of
Urban Waste Disposal Facilities
NOT closure
• Resource Recovery Centers NOT
S it
Sanitary Landfills
L dfill
• Waste diversion and utilization
NOT disposal
Models: Cebu and Cagayan
g y de Oro
™ Cebu “Integrated Waste
M
Management t and
dRResource
Recovery Center
• Since 1998 Operates
p 15 hectare
Inayawan Sanitary Landfill with 2
million tons
Project Site • Collects 400 tpd mixed MSW
™ Cagayan De Oro City:
Cebu

Waste to Energy Facility

• Agro Industrial Center 1
1.5
5 million
(Metro CDO)
• Since 1984 Operates 17 hectare
Carmen Controlled Dumpsite (150
tpd)
 “Cebu Inayawan Landfill
R
Resource R
Recovery Center”
C t ”
• Phase I: Upgrade • Phase II: Waste to
ƒ Odor Control Energy
ƒ Land Reclamation & ƒ Anaerobic Reactor &
Park Conversion F tili
Fertiliser Pl
Plantt
ƒ Material Recovery ƒ 1 MW Biogas Power
Facility (100 tpd) Plant
ƒ Wastewater Treatment
Plant (200 cbm/day)
• Phase III – Tri Gen
ƒ Refuse Derived Fuel ƒ Additional 6MW Power
(200 tpd) Plant
ƒ Residual Waste for ƒ Steam for Desalination
backfilling ƒ Waste Heat for Cooling
 “Turning
Turning Costs to Investments”
Investments
Phase I - Remediation and Upgrade
Pre Development Cost 23,400,000
Equipment Purchases and Commissioning 234,000,000
Add: Contingency 11,700,000
Total Costs - Phase I 269,100,000
Ph
Phase II - Waste
W t tot Energy
E Facility
F ilit
Pre Development Cost 13,095,000
Equipment Purchases and Commissioning 130,950,000
Add: Contingency 6 547 500
6,547,500
Total Costs - Phase II 150,592,500
Phase III - Biogas Tri Generation
Pre Development Cost 43,550,000
Equipment Purchases and Commissioning 435,500,000
Add: Contingency 21,775,000
Total Costs - Phase III 500,825,000
T t l Capital
Total C it l Expenditures
E dit 920 517 500
920,517,500
 Sustainable Waste Management
FINANCIAL RATIOS AMOUNT Without CARBON With CARBON
Phases I and II (PhP) CREDITS CREDITS
((10 y
years))

Total Gross Revenues 2,346,750,937

Potent Carbon Credits 294,075,936

(7 years)
Total Revenues & CERs 2,640,826,873

Return On Investment 16.48% 32.45%

Return On Equity 41.19% 53.62%

Internal Rate of Return 9.75% 19.55%

Total Net Cash Flow 764,081,180 1,026,380,225

Net Present Value 229,906,180 492,205,228
 “Phase III: Growth Center”
Revenue Sources Volume US$ per Gross
(Average Annual (Per Unit of Revenues
S l
Sales; 25-year
25 P i d) Annum)
Period) A ) S l
Sales Annuall PhP
A
Electric Power Sales 107,824 6000 646,944,000
(add’l 6MW capacity MWh)
Fertiliser Sales 51,200 3200 163,840,000
(existing 200 MT/D, m. tons)
Process Steam Sales 138,240 1600 221,184,000
(6TPH tons
(6TPH: t per hour)
h )
Chilled Water Sales 12,000,000 30 3,600,000
(3MW; tons of refrigeration)
Carbon Reduction Credits 192 000
192,000 500 96 000 000
96,000,000
(addl 6 MW; tonCO2e; 7-yrs)
Total Annual Revenue P 1,131,568,000
 Minergy
gy MSW to Energy
gy Plant

Only
15% to
Muncipal Landfill
or
Waste Future
Gasifier
!

Power
Fertiliser
 “BOT & PPP Scheme”
Pilot Phase : 2
2.0
0 MW Waste to Energy Facility
“Trail Blazing
g Clean Energy
gy
Systems”
• Phase I: 2 MW Pilot Biogas Waste-
gy Power Plant
to- Energy
• Phase II: Fertiliser Production Facility
and Upgrade 1818.99 MW Bunker
Gensets
• Phase III: Biogas Fired Heating and
Cooling Facility
 Pilot Phase : 2.0 MW Waste to Energy Facility
Project Cost US$ 2
2.3
3 million

Without
AMOUNT With CARBON
FINANCIAL RATIOS CARBON
(US$) CREDITS
CREDITS
Total Revenues (10 years) $ 17,352,966

Potent Carbon Credits (7 yrs) $ 2,629,072

Return On Investment 40.48% 44.84%

Return On Equity 101.19% 112.09%

Internal Rate of Return 36.07% 43.89%

Total Discounted Cash Flow (10 yrs) $ 5,407,264 $ 6,390,158
Net Present Value (10 yrs) 2,703,930 4,073,797
 “Growth Center Potentials”
Revenue Sources Volume US$ Unit Annual
(Annual Average Sales; (Per of Sales Gross
US$ 2
25-year Period)
P i d) A
Annum) ) R
Revenues
Electric Power Sales 26,956 120 $3,234,720
(megawatt hours)
F tili
Fertiliser Sales
S l ( ti
(metric 25 600
25,600 64 1 634 043
1,634,043
tons)
Process Steam Sales 69,120 32 2,211,840
(tons per hour)
Chilled Water Sales 6,000,000 0.06 360,000
(tons of refrigeration)
Carbon Reduction Credits 192 000
192,000 10 1 920 000
1,920,000
(tonCO2e; 7-years)

Total ANNUAL Revenues $9 360 603

$9,360,603
 Environmental Benefits
a. Alternative compliance option: RA 9003
b
b. W t diversion
Waste di i and d savings
i in
i wastet
management and operating costs
c. S f and
Safer d eco ffriendly
i dl environment
i t ffrom
leachate control, safeguard air/water
quality greenhouse gas mitigation
quality,
d. Switching from fossil fuel to renewable,
cheap and indigenous energy
 Socio Economic Benefits
a. Conversion of idle assets into revenue centers
b. Appreciation
pp of land values ((site & adjacent
j
areas)
c. Sources of funding for Infrastructure
d. Revenues from various by- products
e. Cost avoidance in the purchase of new landfill,
andd costt savings
i in
i wastet disposal
di l and d
management
f
f. Extend the economic life of existing waste
disposal facility
g
g. Provision
o so o of se
services
ces to
ooother
e LGUs
GUs
h. Reduced energy costs
Thank you very much
and Good day!
“Clean Energy for a Clean Earth"
Cities Development Initiative for Asia
+(63) – 631 - 2342
www.cdia.asia
 Inayawan Resource Recovery Center
Phase I - Remediation and Upgrade
Pre Development Cost 23,400,000
Equipment Purchases and Commissioning 234,000,000
Add: Contingency 11,700,000
Total Costs - Phase I 269,100,000
Ph
Phase II - Waste
W t tot Energy
E Facility
F ilit
Pre Development Cost 13,095,000
Equipment Purchases and Commissioning 130,950,000
Add: Contingency 6 547 500
6,547,500
Total Costs - Phase II 150,592,500
Phase III - Biogas Tri Generation
Pre Development Cost 43,550,000
Equipment Purchases and Commissioning 435,500,000
Add: Contingency 21,775,000
Total Costs - Phase III 500,825,000
T t l Capital
Total C it l Expenditures
E dit 920 517 500
920,517,500