Country | China
Region | Asia
Sector | water and waste
QII Principles | Principle 1: Sustainable Growth & Development Principle 2: Economic Efficiency Principle 3: Environmental Considerations Principle 4: Building Resilience Principle 5: Social Considerations Principle 6: Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Assessment, 3: Disclosure of environmental aspects, 3: Climate, 3: Emissions, 4: Resilience, 4: Disaster risk management, 5: Social Impact Assessment, 5: Job creation, 5: Capacity and institutional building, 5: Occupational health and safety, 5: Universal access to services, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Access to information and data, 6: Legal and Regulatory Frameworks, 6: Institutional Framework of infrastructure investment, 6: Enabling Environment, 6: Policy
Cost: 278 million USD
Subproject 1 transfer solid waste to electricity: The disposal capacity is 2250 tons of solid waste per day.
Subproject 2 transfer food leftovers to biogas: The first phase waste disposal capacity is 400 tons of food leftovers per day and the second phase is 800 tons of food leftovers per day.
Subproject 3: transfer food leftovers to biodiesel.The first phase waste disposal capacity is 400 tons of food leftovers per day and 40 tons of waste cooking oil per day. In the future, the total scale can be 600 tons of food leftovers per day and 60 tons of waste cooking oil per day.
Parties involved (public and private) :
- Ningbo Urban Management Administrative Enforcement Bureau (public)
- SUS Environment Co ., LTD (private, Subproject 1 transfer solid waste to electricity)
- Capital Environment Holdings Limited (private, Subproject 2 transfer food leftovers to biogas)
- Ningbo Kaseen Ecology Technology Co ., LTD (private, Subproject 3: transfer food leftovers to biodiesel)
Relevant contractual details (type, length etc.):
- Subproject 1 transfer solid waste to electricity: 20 years cooperation period, BOT, viability gap funding;
- Subproject 2 transfer food leftovers to biogas: 20 years cooperation period, DBFO, viability gap funding;
- Subproject 3 transfer food leftovers to biodiesel:30 years cooperation period;
- BOT, viability gap funding.
Context: The project includes three subprojects: transfer solid waste to electricity, transfer food leftovers to biogas, transfer food leftovers to biodiesel.
Aim(s) of the project: The project aims to improve waste disposal efficiency, reduce urban waste and pollution, transfer the waster into resources and energy, enhance sustainable urban development. The subproject 2 is blend-financed by the World Bank, China Clean Development Mechanism Fund and local banks.
Key dates including procurement, construction, operations
Subproject 1 transfer solid waste to electricity:
- Date of signing PPP contract: January 19,2015
- Date of starting construction: January 1, 2016
- Date of starting operation: October 1, 2017
Subproject 2 transfer food leftovers to biogas:
- Date of procurement: November 2015-May, 2016
- Date of signing PPP contract: June 24,2016
- Date of starting construction: December 1, 2017
- Date of starting operation: February 15, 2019
Subproject 3: transfer food leftovers to biodiesel:
- Date of procurement: July-November, 2016
- Date of signing PPP contract: December 22,2016
- Date of starting construction: April 1, 2017
- Date of starting operation: December 20, 2018
Relevance to QII
The project transfers waste into useful resources such as electricity, biogas and biodiesel, facilitating the sustainable development. It improves air quality and slows climate change with a reduction of 340 thousand tons of carbon dioxideannually.
The capacity of resisting natural disasters such as flood, geologic hazard has been considered in the project design.
During the construction and operation of the project, many jobs have been created. The SPV pay attention to the issue such as occupational health and safety, capacity building, etc.
China has established a comprehensive legal framework for PPP, including PPP regulations, policies, guidelines, standard contract etc. PPP units have been set up both at central and local level. PPP project information have been disclosed on the national PPP platform to ensure transparency.
Expected and realised benefits
- Three subprojects are placed in one zone to achieve the co-processing of urban waste.
- Reduce 340 thousand tons of carbon dioxide annually.
- Turn waste into wealth such as electricity, biogas, biodiesel.
Conduct performance monitoring report, mid-term performance evaluation and post-value-for-money evaluation to ensure the project outputs meet the standards agreed in the PPP contract.
Name of Institute
China Public Private Partnerships Center, Ministry of Finance, China ?Based on the project information input by local government, private partners and SPV onto the National Comprehensive PPP Information System.?