Pontianak - LFG Recovery Project

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The project development objective is to reduce methane emissions from solid waste disposed in the Tempat Pembuangan Akhir (TPA) Batu Layang landfill in Pontianak, Indonesia through a carbon finance transaction between the World Bank-managed The Netherlands Clean Development Facility (NCDMF) and the project sponsor. There are two components to the project. The first component of the project is Landfill Gas (LFG) project. The first activity will consist of LFG extraction and flaring facilities that will include the following components: (i) a collection system consisting of horizontal and vertical wells and collection pipes that will be installed in the area containing waste that will be expanded over time as additional areas of the landfill are filled; (ii) LFG pumping equipment including a pipeline and blowers; (iii) LFG treatment and flare systems which will remove moisture and combust the gas; and (iv) monitoring and control systems. After the LFG collection and flaring systems have become operational, the project sponsor will evaluate the addition of a 120 kW generator for on-site electricity needs. The second component of the project is carbon finance transaction. The World Bank-managed NCDMF will finance the purchase of emission reductions (ER) credits resulting from the flaring of the gas. 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, designated operating entity (DOE), under the rules of the Kyoto Protocol. The quantity of ERs to be contracted, the length of time over which the purchase will be made, and the price paid will be agreed between the World Bank and the project sponsor during emissions reduction purchase agreement (ERPA) negotiations.