Effective Infrastructure for Solid Waste Management

Differently coloured dustbins

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Effective Infrastructure for Solid Waste Management
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Waste Management
Business Model Description

Invest in construction and operation of solid waste management infrastructure, including sewage systems and sanitation centers. Investments can be concentrated in areas with high demand as identified by the local governments.

General Santos City Sanitary Landfill Started at the beginning of the 21st Century, the General Santos City Sanitary Landfill Project is a proposed public-private partnership (PPP) project that aims to extend the life of the General Santos City Sanitary Landfill (SLF) and improve its capacity. The project involves the operation and maintenance of the SLF and the establishment and implementation of a waste conversion program. The indicative cost of the project is USD 2 million. East Asia Sheng Tai, a consortium consisting of East Asia Solutions Technology Corporation, Sheng Tai Energy Technology Company, and Dr. Lin Shing-Chou, had submitted an "unsolicited proposal" to manage and operate the sanitary landfill for at least 25 years, with the project costing ~USD 1.76 million.

Quezon City Integrated Solid Waste Management Facility Project. Initiated in 2018, the Quezon City Integrated Solid Waste Management Facility Project is a public-private partnership venture between the local government of Quezon City and a consortium led by Metro Pacific Investments Corp. The project entails the design, financing, construction, operation, and maintenance of a waste treatment facility capable of processing up to 3,000 metric tons of municipal solid waste (MSW) per day and generating 36-megawatt electric (MWe) of renewable power. It aims to provide the QC LGU with a sustainable and cost-efficient waste disposal solution.

Expected Impact

Improving health and environment of impacted communities and water ways through providing solid waste management solutions.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Clean water and sanitation (SDG 6) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Responsible Consumption and Production (SDG 12) Good health and well-being (SDG 3)
Sector Sources
  • 1) NEDA. Philippine Development Plan 2023 to 2028 https://pdp.neda.gov.ph/philippine-development-plan-2023-2028/ 2) INFF. Development Finance Assessment 2022. https://medium.com/@jp.inff.ph/2022-development-finance-assessment-shows-ph-financing-landscape-in-the-time-of-covid-19-and-the-68dcc39bcc19 3) Savoy, C. and Staguhn, J. (2022). The Role of Water in Catalyzing Gender Equity. Center for Strategic & International Studies. https://www.csis.org/analysis/role-water-catalyzing-gender-equity#:~:text=The%20United%20Nations%20highlights%20three,access%20to%20a%20water%20source. 4) KMC SAVILLS. https://kmcmaggroup.com/research-insights/2014/poor-infrastructure-impedes-ph-from-attaining-maximum-growth/ 5) PSA. Majority Families have Access to Improved Source of Drinking Water https://psa.gov.ph/content/majority-families-have-access-improved-source-drinking-water-results-2022-annual-poverty" 6) NEDA. Philippine Water Supply and Sanitation Plan 2019 - 2030. https://neda.gov.ph/wp-content/uploads/2021/09/120921_PWSSMP_Main-Report.pdf " 7) UNICEF. 2 Billion People Lacking Safe Water Twice Lack Safe Sanitation. https://www.unicef.org/philippines/press-releases/two-billion-people-lack-safe-drinking-water-more-twice-lack-safe-sanitation#:~:text=Around%2099%25%20of%20the%20one-fifth%20wealthiest%20households%20are,20%20million%20lack%20access%20to%20basic%20sanitation%20facilities " 8) World Bank. Market Study for Philippines Plastic Circularity Opportunities and Barriers Report. https://www.worldbank.org/en/country/philippines/publication/market-study-for-philippines-plastics-circularity-opportunities-and-barriers-report-landing-page" 9) Business Mirror. Philippines only has 10% of Needed Sanitary Landfill, DENR. https://businessmirror.com.ph/2020/02/05/phl-only-has-10-percent-of-needed-sanitary-landfills-says-denr-exec/" 10) Cruspero, R. (2023, June 25). Private consortium eyes PHP100-M project to manage, operate sanitary landfill. Philippine News Agency. https://www.pna.gov.ph/articles/1123160 11) Mayuga, J. (2021 January 10). The garbage conundrum. Business Mirror. https://www.denr.gov.ph/images/DENR_News_Alerts/DENR_News_Alerts_10_January_2021_Sunday.pdf 12) Philippine News Agency. (2022 May 30). Solid waste segregation remains major challenge in PH: DENR chief. Philippine News Agency. https://www.pna.gov.ph/articles/1175460 13) Rappler (2022) https://www.rappler.com/environment/informal-waste-work-women-twice-vulnerable-invisible/
IOA Sources
  • 14) Business Mirror/DENR, 2021. https://www.denr.gov.ph/images/DENR_News_Alerts/DENR_News_Alerts_10_January_2021_Sunday.pdf 15) SMEC, (2016). FS on Small-Scale WTE Plants 16) Statista. https://www.statista.com/forecasts/1222059/waste-collection-revenue-in-the-philippines 17) NEDA (2020 December) https://nro13.neda.gov.ph/wp-content/uploads/2021/10/Pre-FS-Upgrading-of-Solid-Waste-Management-System.pdf 18) ADB (2016 December) Prefeasibility Study – Conventional Waste-to- Energy Project in Quezon City 19) Enventix, Inc. (n.d.) Municipal Solid Waste (MSW). https://enventixinc.com/municipal-solids-waste/ 20) Precedence Research (n.d.) Waste Management Market (By Waste Type: Hazardous Waste, E-waste, Municipal Waste, Plastic Waste, Industrial Waste, Others; By Service Type: Collection, Open Dumping, Incineration/Combustion, Landfill, Recycling; By End User: Residential, Commercial, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030. https://www.precedenceresearch.com/waste-management-market 21) QC Solid Waste Management Project https://ppp.gov.ph/wp-content/uploads/2018/10/PPPC_PROJ_QC-Intgrated-Proj-Info-Memo.pdf