Presented by Iftekhar Enayetullah Presentation on Design, Implementation and Monitoring of Waste Sector CDM Projects: Experience of Waste Concern in Bangladesh, Sri Lanka and Vietnam FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE web: www.wasteconcern.org Date: 8-9 April, 2008 Venue: LGED Bhaban, Dhaka Presentation Outline 1. 2. 3. 4. 5. Background of the Waste Sector CDM Project CDM project cycle How the project is implemented What aspects needs to be monitored for CDM Examples of projects from Vietnam and Sri Lanka web: www.wasteconcern.org Baseline Situation Methane Emission (Green House Gas) Waste CDM project No Methane Emission City Authorities Collecting transport Existing Practice: land filling of waste Composting Plant Starting from 100 Tons/day capacity and within 2 years reaching 700 Tons/ day capacity The project is recycling organic vegetable waste and instead of disposing in landfill, it is converted Into compost. Waste Concern is involved in the design, implementation and now monitoring of the project MAJOR PORTION OF WASTE IS ORGANIC www.wasteconcern.org URBAN WASTE GENERATION (Tons/ day) IN BANGLADESH •1995: 10,742 tonnes/day •2005 : 14,000 tonnes/day •2025: 47,064 tonnes/day (estimated) Methane Gas Emission is being measured by the expert of the Royal Haskoning of the Netherlands and Waste Concern by land fill gas analyzer at the Matuail Waste Disposal site of Dhaka City Corporation Obtained UNFCCC approval on Sept 2005 www.wasteconcern.org CDM Project Cycle Waste Concern Identification of project and development of project concept note Development of Project Design Document Project developer Includes: Project Description Select baseline approach and assess additionality Set baseline emission level and crediting period Calculate net emission reductions Develop a monitoring plan Assess environmental impacts Invite local stakeholders for comments Host country approval Waste Concern WWR Submission of the PDD and host country approval to validator Project developer Host Government (National Authority) Project developer Make PDD publicly available for 30 days Operational Entity Validation of Project Operational Entity Submission of validation reports and Project Design Document CDM Executive Board Registration with the CDM Project implementation and monitoring Project developer Project developer Verification and certification Operational Entity Host Government Operational Entity CDM Executive Board Possible review by the CDM Executive Board Issuance of CERs to project developers CDM Executive Board WC, WWR, FMO and Triodos of NL Development of CDM Activities in Bangladesh 7 January 2004 29 February 2004 18 April 2004 8 August 2004 DCC gives NOC for preparation and implementation of the projects under CDM WC submits two CDM Projects to National CDM Committee for LFG Recovery (LFG & Composting) along with commitment letter of Dutch investor. National CDM Committee approved the projects National CDM Board headed by the PM office gives final approval of the project. 17 Sep 2005 First CDM Project of WC (Landfill Gas Extraction and Utilization) Registered with UNFCCC. 24 Jan 2006 DCC’s Signs 15 years Concession Agreement for the 700 tons/day capacity compost plant 18 May 2006 Second CDM Project of WC (700 ton capacity compost plant) Registered with UNFCCC (after development of a new methodology AM 0025) 16 May 2007 Compost Project Registered from Board of Investment (BoI) August 2007 Environmental Clearance (IEE) from DoE for Construction (Site Clearance) Nov 2007 Construction Process of Compost Plant Started November 2007 March 2008 Trail Production and Monitoring started and full production by June 2008 Project based carbon trading (CER/VER) between industrialized and developing countries Dutch Company WWR and Banks, FMO and Triodos CDM investment $$ Industrialized country Emission reduction credits (CER) Project Reducing GHG emissions in Dhaka web: www.wasteconcern.org Mode of investment for the project CASH upfront for project preparation EQUITY+LOAN (WWR, FMO and Triodos) LOAN Local currency Project Cost: Total Euro 12 million 8,90,000X18=16.02 million in 10 years web: www.wasteconcern.org PARTNERSHIP MODEL UNDER CDM PROJECT International Market CER ( carbon credits) Rural Farmers Compost Project Investment Harnessing CDM BOI COMPOST PLANT CDM Board Project Approval Organic Waste Joint Venture of WC, WWR, FMO & Triodos Bank of NL Urban Population •Direct Collection from Vegetable markets DCC PUBLIC Giving concession agreement for15 years •Paying CBOs/NGOs for waste delivery Attracted 12 million Euro PRIVATE • Promoting source separation and community participation COMMUNITY www.wasteconcern.org How the project is implemented Concession Agreement with D.C.C Waste Bins Demountable Containers Collection Transportation Landfill PROBLEMS Green House Gas Emission More Land Required for Landfill 700 tons/day Saving of waste collection cost for D.C.C for 2,55,500 tons waste/yr 700 tons/day Saving 2,81,050 m3 land filling avoided per year Saving of disposal cost at dumpsite by avoiding 2,81,050 tons per day. No investment from public agency in this project Collection of Organic municipal waste from vegetable markets using our own collection system Compost Plant ( land and plant belongs to Company) 700 tons/day Production capacity: 175-210 tons per day Employment: 800 person, specially women Emission reduction: 89000 tons CO2/ yr. Compost Initially 8000 tons/year and reach 50,000 tons/year (Cheaper than chemical fertilizers) Rural Areas (Farmers) www.wasteconcern.org Collection Route of Vegetable Waste from Kawran Bazar to Compost Plant UTTARA PS. Uttara Bazar AIRPORT PS. Zia International Airport PALLABI PS. Mirpur-11 Bazar CANTONMENT PS. Noadha Bazar COMPOST PLANT (BULTA ) Transfar Station Dhaka Gate MIRPUR PS. KAFRUL PS. Gulshan-2 Bazar BADDA PS. Transfar Station Between Gulshan 1&2 IVE R GULSHAN PS. ST AL AK HY AR Mirpur-1 Bazar Mohakhali Gulshan-1 Bazar Bazar Mohammadpur Krishi Market Transfar Station Mohammadpur Town Hall Market Transfar Station Naval H.Q. Jatiya Sangsad Bhaban TEJGAON PS. National Graveyard Eye Hospital MOHAMMADPUR PS. Rampura Bazar Kalmilata Bazar Indiraroad Bazar Vegetable waste Collection Area Kawran Bazar KHILGAON PS. Malibagh Bazar Bashundhara City Sonargaon Hotel RAMNA PS. Holy Family Hospital Hatirpool Bazar HAZARIBAG PS. Azimpur Graveyard Khilgaon Bazar Mohila Samity Ramna Park New Market Public Library Scout Bhaban Shantinagar Bazar MOTIJHEEL PS. DHANMONDI PS. Bangladesh Secretariate National Stadium Fakirapul Bazar SABUJBAG PS. Kamlapur Bazar GPO Dhaka Medical College Hospital Bangladesh Bank Banga Bhaban Nagar Bhaban LALBAG PS. Ittefaque KAMRANGIR CHAR PS. Lalbag Fort Dhaka Central Jail KOTWALI PS. BU R IG AN Gopibagh Bazar DEMRA PS. Jatrabari Bazar SUTRAPUR PS. G A R IV ER SHAMPUR PS. R.R.C PLANT LEGEND Collection Route.............. Market / Bazar Location... Transfar Station............... Thana Hq......................... Road................................ N E W S Railway............................. 500 0 500 1000m. SCALE River/Lake........................ www.wasteconcern.org Basic Layout Reception, sorting & mixing TO MORAPARA 8.00 Ø 900 new effective boundry Unloading platform 11.40+ Walled / fenced slope 1:1 Clay wall 9.60 n, receptio shed canteen storage kitchen toilets Enrich ment Enrichment plant 420 m2 storage structure Storage (roof) 245 m2 and sorting leachateage or water st 2 300 m tment pre-trea storage refuse 2 525 m roofed 245 m2 storage compost 700 m3 245 m2 245 m2 roofed 2 floors Screeni ng I 8.00 9.68 Weigh bridge 10*2,5 M 5.500 m WIDE KATCHA ROAD Screening phase 1 Screeni ng II lever pre-composting 3 weeks, 3-4 days a cell roofed, aerated meeting room(s) (Roofed) gate: 8 m1 Maturing, 4 weeks Maturing lever Entrance 700 m3 245 m2 Screening phase 2 Office reception 1st phase composting Entrance Not roofed, aerated N M AI HOME STEAD 2350 m2 (not roofed) 9.51 700 m3 245 m2 9.868 POND 9.265 TO DITCH BM. RL=10m. RO AD 9.45 HIGH LAND CUL VER T 9.20 HIGH LAND www.wasteconcern.org How the CDM Project is helping the city and the poor Input Collection Process Aerobic Composting Pro-poor element 700 tons/ day of waste collection Starting from 100 tons/day Job Creation 400 new jobs Compost (50,000 tons/year) (Organic Waste From Markets) Saving DCC cost Output Saving Landfill Area Pro-poor element Creating 800 new jobs Focusing Waste Pickers Health Insurance Daycare Center Free Meal Carbon Credits (89,000 ton Co2e) Pro-poor element Cheaper Less Irrigation Soil Quality Improved Higher Yield Leads to higher income Before-After: Waste Collection System Present Collection Practice Improved Covered Collection Parameters to be Monitored During Implementation Weighing of Waste Input Process Quality Control Regular Oxygen Monitoring Parameters to be Monitored During Implementation Temperature Control Aerobic Composting System Parameters to be Monitored During Implementation Regular Oxygen Monitoring Safe Working Condition Replication of Waste Concern’s Decentralized Composting Model in Vietnam and Sri Lanka With the support from UNESCAP, Waste Concern successfully replicated it small scale (3 tons/ day capacity) compost plants in the Quay Nhon City of Vietnam and Matale City of Sri Lanka. Later both the cities are requesting Waste Concern to bundle these small scale plants for their respective cities. Quay Nhon City, Vietnam generates= 80 tons/day (60% organic) Matale City of Sri Lanka generates= 30 tons/day (60% organic) Transaction Cost for CDM Based Projects CDM Project Cycle for Large Scale > 15,000 Tons of CO2e)/Year Estimate of Cost (US $) A) Up-front (pre-operational) Costs: 1. ER Feasibility Assessment 5,000 - 20,000 2. Preparation of the PDD 25,000 – 40,000 3. Registration 10,000 4. Validation 10,000 -15,000 5. Legal Work 20,000 – 25,000 Total Up-front Costs: 70,000 – 110,000 B) Operational Phase Costs: 1.Monitoring and Verification $3,000 – 15,000 per year[2]. For small-scale CDM project the total upfront transaction cost is estimated as US $ 25,000 to 40,000. Community Based Composting Initiative Qyay Nhon City, Vietnam Front View of the compost plant Perforated bottom and side walls of the compost box Rear view of the compost plant Maturing bed of the compost plant Community Based Composting Initiative Matale City, Sri Lanka Community Mobilization Side view of the compost plant at Matale City Special containers for waste collection Bundling CDM Projects Sri Lanka and Vietnam Multiple small scale composting projects One single CDM project Bundling organization VER/CER to Investor Project Cycle for VERs PROJECT INFORMATION NOTE (PIN) VALIDATION IMPLEMENTATION VERs Cost for the preparation of PDD and Validation is bourn by the buyer Global Impact Reducing Green House Gas Attracting Foreign Direct Investment (FDI) Reducing poverty by creating jobs for urban poor Providing safe and better working condition for the informal sector Raises public awareness on Solid Waste Management and recycling Complying with the MDG Local Impact Reducing ground and surface water pollution thus reducing health hazards IMPACT OF THE PROJECT Reducing Solid Waste Management cost of municipalities Promoting PPCP an investtments Enhancing the life of the Dumpsite Improves the quality of life of the city www.wasteconcern.org Mitigation-Adaptation Loop Mitigation