The CCAC MSW Knowledge Platform is a tool that has been established to promote, share and exchange information and provide outreach resources to support cities and governments to reduce short-...
High-level pre-feasibility analysis for a composting project
The analysis reviewed the technical, economic and environmental aspects of building a composting plant in Arequipa. The specific objectives of this study were to:
- Present a general overview of the solid waste management regulatory and institutional framework in Peru and Arequipa;
- Present a general overview of the current situation of the solid waste management sector in Arequipa;
- Present a general assessment of organic waste treatment alternatives and the rationale for selecting the composting option;
- Develop a project concept design, including, an assessment of the potential organic waste available for the project, a definition of two possible composting scenarios based on the organic waste available, a description of the composting technology and processes for each scenario, and the location and outlay of the plant;
- Conduct an analysis of the capital and operating and maintenance costs of the composting plant in each scenario;
- Conduct a financial analysis for each composting scenario, including NPV and IRR calculation;
- Assess the potential for greenhouse gas emissions reductions in each scenario and the sustainable development co-benefits of the project.
Financial work plan for a composting project
The Center for Clean Air Policy (CCAP), an implementing partner of the Coalition's Municipal Solid Waste Initiative, provided on-the-ground financial, policy and technical assistance to the Provincial Municipality of Arequipa (MPA) to develop a financial work plan and support implementation of an organic waste management project.
This project aims to develop a composting plant at the municipal landfill to process organic waste coming mainly from municipal markets and the maintenance of Arequipa’s green areas. This initiative is expected to contribute to the achievement of environmental goals set by the national government while resulting in benefits such as extending the lifetime of the landfill, reducing the generation of methane emissions and leachate, and producing valuable compost for agriculture and green areas maintenance in a region characterized by water scarcity and arid soils due to its desert climate. More specifically, this project could lead to cumulative emissions reductions ranging between 31,000 and 146,000 tons of CO2e over a 20-year period compared to a business-as-usual scenario.