Orizon Waste

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Orizon Meio Ambiente S.A. (“Orizon” or the “Company”), part of Orizon Valorização de Resíduos S.A. (OVDR) -https://orizonvr.com.br/-, founded in 1999 under the name Haztec, is a leading Brazilian waste management company focused on final destination and waste valorization (such as energy, biogas exploitation, biomethane, recycling, RDF and carbon credits) that owns and operates several waste management facilities and provides environmental engineering services across Brazil.IFC is seeking to provide a corporate loan to Orizon of 130 million BRL (US$25m), to be used exclusively for four waste management assets located within three landfills operated by Orizon: a Material Recovery Facility (MRF or Unidade de TriagemMecanizada - UTM) in Jaboatão landfill in Pernambuco (PE) (known as Central de Tratamento de Resíduos – CTR Candeias); the expansion of existing Leachate Treatment Facilities using Reverse Osmosis (RO) technology in modular containerized unit (LRO) and future construction of a MRF at the São Gonçalo landfill in Rio de Janeiro? (RJ); and the expansion of an existing LRO at the Barra Mansa landfill, also in RJ. The MRF facility in the Jaboatão landfill is designed for recycling solid urban waste and processing mixed (or “co-mingled”) Municipal Solid Waste (MSW) and separates organic waste, recyclables, inert waste, and residues. The MRF in the Jaboatão landfill will process approximately 2,000 tons of waste per day for 24 hours. Orizon is installing this MRF in a dedicated area of approximately 2.5 ha within the Jaboatão landfill, which has been in operation since 2007 and has a total area of 121 ha (representing around 2% of total landfill areas). The MRF facility is under construction and is scheduled to start operating in mid-2022. The MRF will operate separately from the landfill and will have its own administrative structure. However, they will share some facilities, e.g., accesses, wastewater treatment plant, waste storage area, and diesel oil aboveground storage tanks (AST). The expansion of the two LROs consist of additional modules of 250 m3/day each, one located within the São Gonçalo landfill and the other one located within the Barra Mansa landfill in RJ; both landfills have been operating since 2012. Each module occupies an area of 250m2, representing less than 0.02% of the total area in the case of São Gonçalo landfill (147 ha), and less than 0.04% of the total landfill area in the case of Barra Mansa landfill (63.3 ha). These existing LROs have been operating since December 2021 and they make treated leachate suitable for use as reuse water at the landfills, reducing freshwater usage.  The future MRF facility in São Gonçalo landfill is planned to be identical in size to the MRF in the Jaboatão landfill (approximately 2.5 ha), representing less than 2% of the total landfill area, and it is planned to be operational by end of 2024.  The MRF in Jaboatão, the LRO and the future MRF in São Gonçalo landfill are in suburban areas and the LRO Barra Mansa is in a rural area. The closest communities to the MRF in Jaboatão are between 150m and 300m away; in the case of the LRO in São Gonçalo, between 600 and 1,000 m away; and in the case of the LRO in Barra Mansa, approximately 3km away. The precise location of the future MRF in São Gonçalo landfill is not defined yet. The nearby communities of the project present aspects of vulnerability, with precarious basic sanitation, housing, and security conditions.