A FEASIBILITY STUDY OF WASTE SEPARATION PLANT: A CASE STUDY OF SAI KHAO MUNICIPALITY OFFICE, SOI DAO DISTRICT, CHANTHABURI, THAILAND

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1 A FEASIBILITY STUDY OF WASTE SEPARATION PLANT: A CASE STUDY OF SAI KHAO MUNICIPALITY OFFICE, SOI DAO DISTRICT, CHANTHABURI, THAILAND by Vilaiporn Chinpeerasatien MBA in Logistics Management, Graduate School, University of the Thai Chamber of Commerce Bangkok, 10400, Thailand vodka_30901@hotmail.com and Wanchai Rattanawong Department of Logistics Engineering, School of Engineering, University of the Thai Chamber of Commerce Bangkok, 10400, Thailand wanchai_rat@utcc.ac.th ABSTRACT Waste is considered as a pollution which causes problems to the community not only in Thailand but in every country. In Thailand, there is the amount of waste arising over 40,000 tons per day. A total number of local governmental offices such as Provincial Administration Organization, municipality, and Sub-district Administration Organization are approximately 8,000. Sai Khao Municipality Office is the one who is facing with this problem. Presently, the amount of waste in Sai Khao municipality areas is up to 20 tons per day. As a result of the prediction/forecast from the data in the past, we will recognize that in the next 15 years, the quantity of waste shall be increased to tons per day. Another problem is that the present waste disposal sites cannot support the increased amount of the waste due to the fact that it has been the landfills site for waste disposal for 12 years. Therefore, it is necessary to study any proper location for construction of waste separation and disposal plant by selecting 3 appropriate locations such as Moo 5 Soi Mahajaria, Moo 2 Na Krachai Village, and Moo 1 Ban Nernthong. The study found that the most appropriate location for the construction of waste separation and disposal plant of Sai Khao municipality Office is Moo 5 Soi Mahajaria because it is far away from the community and its project s area can be expanded, etc. By using the assessment theory of Factor Rating Method with the highest score is The value of capital investment for this project is Baht 45,532,248 and this study has analyzed financial returns and found that the net present value is Baht 218,969,826.81, Internal Rate of Return is 52.50%, Benefit Cost Ratio is 1.73, Profitability Index is 5.81 and Discounted Payback Period is 1.15 years. KEYWORDS Pollutions, Waste, Location Analysis, Financial Analysis INTRODUCTION Presently, Sai Khao Municipality Office, Soi Dao District, Chanthaburi Province is facing with waste problem that the amount of the waste is increased every year. These causes the existing waste disposal landfills cannot support the increasing amount of waste. As a result of the taking the data in the past during the last 10 years for calculation models with Linear Trend Equation, the equation is that y = x The calculation shall be forecasted in the next 10 years, the output will be shown in the figure 1. Sai Khao Municipality Office needs to find new location for waste disposal.

2 FIGURE 1 RATE OF INCREASING WASTE Rate of Increasing waste 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 y = x Weight (ton : month) Linear (Weight (ton : month) CONCEPTUAL FRAMEWORK In this study, the researcher has taken the assessment of Factor Rating Method as a method to find approaches to evaluate the decision value of locations which consist of input factors in both quantitative and qualitative. However, owing to each factors of location selection has varied in either balance/weight or importance. Therefore, it must be considered which factor has affected most relationship and objective of the business. The factor assessment method is the most popular due to its variety of factors in both quantitative and qualitative which effect to decision making for location selection. Also, financial analysis has been made in order to recognize the costs of investment and returns of the project or financial profit, Cash flow and Cash Outflow including financial return analysis to find whether this project has given sufficient returns/profit to stakeholders to motive them to join the project or not by using financial tools as criteria in making investment decision.. RESEARCH METHODOLOGY From the analysis by using method of calculating the weight of each location, it was found that the location in Moo 5 Soi Mahajaria, Sai Khao sub-district which is the present waste landfills, has total weight 90.90% more than Moo 1 Ban Nernthong and Moo 12 Banna Krachai village which have total weight 81.88% and 80.28% respectively as shown in table 1. It can be seen that in each location which shown factor weighting averages is differentiated by various factors which has been weight. Na Krachai village is the location which has the least weight such as technical factor is 9%, environmental factor is 36.8%, physical factor is 9.86%, economic factors is 13.13% and social factor is 11.5%. Owing to the location of Na Krachai village which is the closest to natural water resources which can effect to the waste irrigating into the water resource. In the shape of the land, the location in Na Krachai village, its soil needs to be improved smoothly and thoroughly before constructing the waste separation plant.

3 TABLE 1 WEIGHTED SCORE CRITERIA IN EACH LOCATION No. Factors used for Consideration Total weight Mahajaria Alley Bann Nernthong Nakrachai Village 1 Techical Factor 1.1 Laws and Regulations 6% City Planning 4% Total 10% Environmental Factor 2.1 Remote from community (20%) Remote from Archaeological area 5% Remote from Airport area 5% Remote from the Community 10% Remote from Natural sources or man-made water resources (20%) Not located in Basin 1 and Basin 2 area 10% Remote from Drinking water wells or the existing water treatment plant 10% Total 40% Physical Factor 3.1 Land size 2% Land shape 2% Availability of Infrastructure (3%) Availability of Electrical system 1.5% Availability of Water supply 1.5% Availability of Basic Infrastructure for being Waste Disposal site 5% Travelling Route 3% Total 15% Economic Factor 41 People requirements 2% Land cost 2% Construction cost 4% Labour cost 7% Total 15% Social Factor 51 Employment 2% People Satisfaction 5% Way of life and Culture of the community when the project has been settled 8% Compensation 5% Total 20% Total 100%

4 In financial feasibility analysis of the project to construct waste separation plant of Sai Khao Municipality Office, we shall realize the return of the project in term of private section or financial profit. When realize the Cash inflow and Cash Outflow of the project, we can evaluate the project s financial feasibility by evaluating the financial feasibility of the project to construct waste separation plant of Sai Kao Municipality Office with discount rate at 6%. The financial feasibility analysis in this case shall be analyzed by using 5 models of financial tools as mentioned above such as Net Present Value: NPV, Internal Rate of Return: IRR, Benefit-Cost Ratio : B/C Ratio, Profitability Index: PI, and Discounted Payback Period. The result of this analysis can be considered in Table 2. TABLE 2 FINANCIAL COMPENSATION ANALYSIS Method Net present value (NPV) Scores 218,969, baht Internal rate of return (IRR) 52.50% Benefit - Cost ratio (B/C Ratio) 1.73 Profitability Index (PI) 5.81 Discounted Payback Period 1.15 years As a result of the analysis of financial return as shown above, it can be considered that the project to construct waste separation plant of Sai Khao Municipality Office is interesting for investment due to consideration criteria in making decision of investment in various patterns, the result in each criteria is in very good level as shown in Table 2. CONCLUSION AND RECOMMENDATION From the result of this study, it was found that Sai Khao Municipality Office should improve its waste disposal system by using its existing location as the plant for waste separation and disposal systematically by designing appropriate landfill system and waste separation systematically to meet reused purpose effectively. On the account of finding another location to construct waste separation and disposal is quite difficult to do so due to strong resistance from the public. Therefore, it is reasonable to improve the original location by planning the waste separation into proportions and separating the waste which can be brought back for reuse. For some waste which is organic waste can be made as manure/fertilizer. The waste reuse is able to be value added such as bringing plastic to be melted to produce low-grade plastic to be utilized in various ways as shown in Appendix A. Available on request REFERENCES

5 APPENDIX A FUSED PLASTIC USED FOR MAKING LOW-GRADE PLASTIC Plastic Waste Fusion Melting Machine Melted Plastic