MY-CF-Kota Kinabalu Composting Project

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The objective of the Kota Kinabalu Composting Project for Malaysia is to avoid methane (a greenhouse gas) emissions from the Kayu Madang Sanitary Landfill in Telipok, Malaysia by diverting the municipal solid waste (MSW) to a sorting and composting plant, which will recover the recyclable portion of the waste and convert the highly biodegradable portion of the waste into marketable compost. Aerobic decomposition of the organic portion of MSW into reusable compost generates carbon dioxide (C02) instead of methane (Ch) that will have been generated as a result of the anaerobic decomposition of MSW disposed in a landfill. The project key indicators will be: (i) the amount of compost produced (tons/year), and (ii) the certified emission reduction (CER) credits created and traded annually (tons of COz-e). This clean development mechanism (CDM) project consists of two components: (a) the construction and operation of a sorting and composting facility; and (b) a carbon finance transaction. The first component of the project is involves construction of a 500 tons day capacity sorting and corn posting plant in Telipok, Sabah State of Malaysia. This plant will process MSW from the City of Kota Kinabalu and three neighboring districts (Kota Belud, Tuaran, and Penampang). Kota Kinabalu City Hall has agreed to provide Smart Recycling approximately 18 acres of land to set up and operate this plant within the Kayu Madang Sanitary Landfill site. Approximately 3.2 acres were designated for the sorting plant and administrative buildings, and the remaining area was conceived for the corn posting plant. The sorting plant started operation in April 2006, and the composting plant is expected to be constructed in 2008 and operational by April 2009. The second component of the project is World Bank managed Carbon Fund for Europe (CFE) will finance the purchase of CER credits resulting from avoided landfill gas production at the Kayu Madang Sanitary Landfill. The purchase will be a performance-based contract under which payments are triggered by successful verification of the reduction of methane emissions by an independent, accredited international entity called the Designated Operating Entity (DOE), under the rules of the Kyoto Protocol.