The project is structured centrally in a planned manner. GUDC estimated the cost of project as 384.16 crores and the provision of funds is only 215 crores from 11th finance commission grants and other related state funds. The viability gap is almost 169 crores.
Also the Municipalities are lacking in technical know how and financial capacity to run this kind of facilities, once created.
Various options have been considered for alternate funding as well as the technology including the sale of Carbon Credits.
The datas for waste characterization and waste quantities for each Ulbs have already been gathered through the state level consultants. Also the clusterization for simplify the facilities and avoid creation of junk assets is under assessment. It was felt that individual facilities can not be handled by municipalities and the capital cost would be much high.
Initially 51 clusters were identified throughout the state, but after a long assessment and study it was derived that the whole state can be managed in only 20 to 25 regional landfill sites, by using the large parcel of waste land available.
The same may also attract the private developers as the general market survey tells that the private developer require minimum of 100 TPD waste to run the facility on sustainable mode. As a result of this exercise initially if a ton of waste to be processed by a municipality than the estimated cost for processing a ton of waste is estimated around Rs.1200 and if we do the cluster approach than it would come down to around Rs. 450.
GUDC received proposals from private developers and best option to fill the viability gap as well as the sustainable solution is to take the project to the PPP mode probably on BOT (Build Own Transfer).
Meanwhile it is also experiencing for the other suitable technologies if it can be adopted for minimizing the waste to be landfilled.
GUDC is an infrastructure company and is to implement the projects but it can not run the O & M so for sustainability of this kind of projects is depends upon the effective operation and maintenance and for that GUDC has submitted a proposal to Government for establishing a company like GWMC (Gujarat Waste Management Company).
The share holding in this company may be as under
GUDC 26%
GMFB 11%
Paricipating ULbs 22%
Private developer 41%
This company will work in this format and will not only look after the O & M but also enhance the capacities of ulbs time to time and explore the various technologies. Out of above 26% share of GUDC it may assign 15% share to government entity over a period of time.
If this kind of arrangements can happen than the chances of sustainable project is very high though very few expertise is available in this field so its better to play this project on assured chances.
GUDC had approached the World Bank also to give consultation for potential purchase of Carbon Credit.130 ULBs of Gujarat State generate 1520 TPD of MSW, i.e. 547200 Mt of MSW is generated per annum. If we process all the MSW then 179613.08 MT compost will be produced. As per the World Bank Calculation & considering US$10.00 (ten United States dollars) per ton as the realizable value for a ton of Carbon Credit, GUDC can approximately earn carbon credits for 165000 MT & get revenue of US$1,650,000.00 (Rs. 7,42,50,000.00) per year till the period of agreement.
|