Municipal Waste-to-Energy Project

Rapid urbanization coupled with population growth have led to an increase in municipal solid waste (MSW) generation in Viet Nam to unmanageable levels. During the period 2004 2015, waste generation increased by about 87% from 15 million tons per year (MT/y) to about 28 MT/y by 2015. Significant portion of the waste collected are disposed at landfills within 200-500 meters of residential areas. Less than 30% of those sites are classified as engineered or sanitary landfills. This poses a significant threat for public health in areas where there is high level of waste generation due to the contamination of the ground and surface water by untreated leachate; emissions of airborne pollutants, and the spread of flies, mosquitoes, rodents and dust.To address the increasing problems of MSW management, the Government of Viet Nam issued a series of laws and regulations requiring immediate attention to the management and disposal of waste in an environmentally sustainable manner. Waste-to-energy (WTE) was recognized as an effective method to reduce waste volume by 90% and to eliminate methane (CH4) emissions. WTE technologies use the waste heat from incineration to produce electricity and heat. By substituting for fossil fuel combustion and avoiding CH4, WTE technologies reduce greenhouse gas emissions (GHG) and mitigate climate change. Despite the recent policy shift in favor of WTE and the increased interest of municipal governments in clean technologies, market barriers still limit private sector participation in WTE. However, through ongoing discussions with stakeholders, the project team identified that China Everbright International Limited (CEIL) can effectively burn MSW in Viet Nam without the need to use supplemental fuel (such as coal) and enter a municipal level public-private partnership (PPP) arrangement. The Project will support the construction and operation of a series of WTE plants with advanced clean technologies including flue gas emission control to meet EU standards in multiple municipalities throughout Viet Nam. The design of the proposed Project in Viet Nam took careful consideration of the experience from previous WTE projects. ADB supported municipal and agricultural waste to energy projects in the PRC in 2009 and 2012. ADB's portfolio approach has also facilitated the financing of multiple subprojects too small to be financed alone. This has contributed to PPP developments in municipal environmental infrastructure sector and has effectively mitigated GHG emissions.