Waste and Wealth: Lessons Learned from World Bank Solid Waste Management Projects. Date: March 1 st, 2012

Transcription

1 Waste and Wealth: Lessons Learned from World Bank Solid Waste Management Projects Date: March 1 st, 2012 Project: Project Implementation Issues and Lessons Learned Ahmad G. Alhyasat Project Manager, Greater Amman Municipality Jordan Greater Amman Municipality Special Projects Department 6 March Presentation Outline The City of Amman Municipal Solid Waste Management in the City of Amman Institutional Size of Operations Ghabawi Landfill Financial Sustainability Project Justifications Objectives Infrastructure Component Institutional Component Major Project Implementation Issues, Actions Taken, and Lessons Learned 1

2 3 The City of Amman Area: 2006: 680 sq. km 2007: 1,680 sq. km 2012:? sq. km Population: 2.5M 3.0M in summer Economy: 50% of total employment More than 80% of economicactivities 4 MSWM in the City of Amman/ Institutional Framework ThesolidwastesectorisamongthetargetareasoftheGovernment snational Agenda (NA) for Sustainable Development. Designation of the Ministry of the Environment as the agency responsible for developing a solid waste management policy and laws and regulations of the waste management sector. Greater Amman Municipality is directly responsible for providing MSWM services in the City of Amman. Encouraging Private Sector Participation in Infrastructure, as stated in the National Privatization Law No. 21 of 2000 and Jordan s National Privatization Strategy. Adopting a National Energy Strategy, which calls for, inter alia, the development of renewable and sustainable energy. 2

3 5 MSWM in the City of Amman/Size of Operations Sweeping and Street Cleaning (1000 km main streets and 3000 workers). Collection Operation (2100 ton/day, 6 operational zones, 27 Districts, i 1683 km 2 total area, 24/7, 100 % coverage, 240 collection vehicles, and m 3 containers). Transfer and Transport ( 1 main transfer station, 2 3 are required). Ghabawi engineered Landfill (2500 ton/day). Recycling and Resource Recovery (Pilot scale). Jordan Biogas (Landfill gas collection wells and biogas plant in the old Russiefeh Landfill, 50 % owned by GAM). 6 MSWM in the City of Amman/ Ghabawi Landfill Excavated Cell type of landfill 9 cells with potential service time beyond 2030 (33.25 M tons) Environmental infrastructure 3

4 7 MSWM in the City of Amman/Financial Sustainability 2009 in Million USD* Component* Overhead OPEX 1.1 CAPEX 0 Full Cost 1.1 Cost per Ton 1 Container O&M Collection and street cleaning Transfer Disposal Total Component Tariff (via electricity bills) Professional Licenses Transfer and disposal fees Total 2009 [60%] *Sogreah 2010, First Draft ReportV3, Long Term Strategic Plan 8 Project/Justifications Lack of technical capacity to plan, monitor and evaluate MSWM services. Insufficient disposal capacity has negatively affected the environmental performance of the existing landfill. Increased transfers from general revenues to cover solid waste service costs. Relatively High collection and transport costs. Private sector participation in MSWM is still in its infancy. Untapped carbon market opportunities. 4

5 9 Project/Objectives Project Co Financed with the World Bank. Specific Investment Loan of US$ 25,000,000, Total project cost is US$ 40,000,000. Specific Objectives: Environmentally upgrade and expand the existing municipal solid waste landfill to meet the city s disposal needs up to 2013 and generate electricity while mitigating Green House Gases emissions. Improve the cost effectiveness of the existing municipal solid waste collection and transport system and improve overall cost recovery. 10 Project/Landfill Extension Cell # 3 Excavated Cell Type Liner System Leachate Collection System 2 Million Tons (2013) USD 4 Million 5

6 11 Project/Landfill Gas Utilization Capping of Cells 1, 2, and 3 8 million tons of waste Vertical Gas Wells Piping Network Gas Plant (2000 Nm3/hr, 4 6 MW) CDM Project Electricity (25,000 MWh/year) ER (150,000 tco2eq/year) Financial, economic, and environmental benefits (FIRR = 10% and EIRR > 25%) 12 Project/Landfill Gas DBO Model 6

7 13 Project/Transfer Network vs. Cell 4 14 Project/Institutional Strategic Plan Operational System (Options, Feasibility and Conceptual Design) Financial Sustainability (Cost recovery) PPP Options M&E System (management level) Public Awareness and Education Upgrade of Landfill Operations 7

8 15 Project/Implementation Issues Implementation Issue High financial qualification criteria for the landfill gas DBO contract Over estimation of landfill gas generation Landfill gas DBO contract performance that impacts project feasibility Actions Taken Revising financial qualification criteria and re launching of procurement process Conservative landfill gas modeling and extraction efficiency (50%) Benchmarking with similar existing landfills in the region Performance based contract with an incentive mechanism Phasing of investments (firm and conditional tranche) Lessons Learned Attention needs to be given to financial qualification criteria for large contracts especially during global credit crisis or financial turmoil situation Conservative landfill gas modeling leads to a project feasibility that is well received by decision makers A balanced contract design especially in PPP contracts, will ensure smooth implementation and a better success rate, such design will give decision makers the comfort zone they require in a tough political environment 16 Project/Implementation Issues Implementation Issue Actions Taken Lessons Learned Delays in carbon finance operation greatly impacts project progress Carbon market regulatory risks that might impact project feasibility Decision makers Linking carbon finance operation with landfill gas DBO contract Preparation of high quality PDD IBRD ERPA amendment (VERs Vs. CERs) Securing a reputable buyer for post 2012 CERs fully taking the CDM market regulatory risk Highlight of environmental and economic benefits of the landfill gas DBO beyond carbon finance to GAM City Council Although the control of the carbon finance operation is linked to variables outside the project, attention needs to be given to ensure that such operation is on track Forward carbon sale deals beyond 2012 guarantees the minimum required cash flow For development projects targeting important sectors emphasis shall be made on economic dimensions rather than financial aspects 8

9 17 Project/Implementation Issues Implementation Issue Landfilling operations and leachate management that impacts landfill gas generation Actions Taken Combined landfill gas and leachate collection wells under the DBO contract Upgrade of leachate treatment capacity (if necessary) TA for landfill operations Procurement of landfill machinery Institutional improvements Lessons Learned In project designs involving landfill gas utilization, activities concerning Leachate management and landfill operation shall be welldefined and accounted for in terms of TA, resources, and institutional arrangements Or as an optimum arrangement: Having one party responsible for landfilling, leachate management, and landfill gas utilization (DBO or BOT for the whole landfill) 18 Project/Implementation Issues Implementation Issue Risk of disposal capacity shortages in 2013 At least two new transfer stations are needed in the City Actions Taken Engineering design and bidding documents for phase 4 Engineering design integrated with the landfill gas DBO contract Timely procurement process to avoid any delays Extensive site selection process (more than 80 sites) and rejection of the final sites by the Ministry of Environment Lessons Learned Disposal capacity extension shall be planned to avoid any future disposal shortages, such responsibility shall be well defined in any institutional arrangement Or as an optimum arrangement: Having one party responsible for landfilling, leachate management, and landfill gas utilization (DBO or BOT for the whole landfill) Awareness and communication plus the necessary political support are vital to secure transfer station sites in the City, especially during social unrest conditions 9

10 Ahmad G. Alhyasat Project Manager Greater Amman Municipality Tel Fax Mob alhyasat@yahoo.com alhyasat.a@ammancity.gov.jo 19 Thanks For Listening 10