The Asian Development Bank (ADB) on Friday signed a $100 million loan facility agreement with China Everbright International Limited (CEIL) to help a series of municipal waste-to-energy (WTE) plants in primary and secondary cities in the Mekong Delta, Vietnam.
This initiative will be the first municipal WTE public-private partnership (PPP) project in the country, ADB said in a statement.
As part of the initiative, CEIL will develop and invest in WTE subprojects in Vietnam to facilitate the harmless treatment, reduction, and reuse of household waste in the cities and produce clean electricity.
“The agreement signed today will be a new model to improve solid waste management in cities, and also mitigate climate change by reducing methane and increasing energy generation from renewable sources,” said Christopher Thieme, Deputy Director General of the Private Sector Operations Department at ADB.
Vietnam generates more than 27.8 million tons of waste annually. Most of the waste collected is disposed of in landfills in an unhygienic manner. This poses a significant health threat to nearby communities, mostly the urban poor.
One of the most effective ways to treat and manage this increasing quantity of municipal solid waste is through WTE, which can reduce waste volume by 90% and eliminate greenhouse gas emissions, while also producing energy from the heat of the waste during incineration, the statement said.
ADB’s assistance will support the construction and operation of a series of WTE plants with advanced clean technologies in multiple municipalities in Vietnam. Each WTE plant will treat municipal solid waste and supply electricity to the local electricity grid, it said.
CEIL operates environmental protection projects spanning 18 provinces and municipalities in the People’s Republic of China. As of the end of 2017, CEIL had 43 WTE projects in operation with a combined processing capacity of 39,100 tons per day and generation capacity of about 4,300 gigawatt-hours per year.
Earlier last year, ADB also signed agreements with 10 commercial banks to support Dynagreen Environmental Protection Group (Dynagreen) in WTE projects. It also signed a $100 million onshore local currency complementary loan agreement.