Public-Private Concession and Partnership Structuring Project for Solid Waste Management in the Municipality of Teresina, State of Piaui

N/A

Amount Raised

N/A

Total Investors

Project Overview

The project aims to structure the urban solid waste management service in the municipality of Teresina, state of Piaui, through concession or public-private partnerships. Counting with Brazilian Federal Government resources, the Ministry of Regional Development, together with Fund to Support the Structuring and Development of Concession Projects and PPP are working to structure environmentally, socially and economically viable solutions related to Solid Waste management.

Sectors

  • Waste Management
US$61,740,000
Funding Goal
Brazil
Country
Latin America and the Caribbean
Region

Objectives

A preliminary project evaluation form was prepared considering the particularities of the city of Teresina. The main objective of the project is to structure a solid waste management service that goes beyond the disposal of tailings in landfills. If we want to structure services by recycling the maximum solid waste that can be diverted from the landfill, from an innovative technological route, thus increasing the useful life of the landfills.

Progress Tracker

Phases

  • Phase 1

    Phase 1 – Performing Preliminary Studies

  • Phase 2

    Phase 2 – Preparation of Technical Feasibility Studies.

  • Phase 3

    Phase 3 – External Validation

  • Phase 4

    Phase 4 – Bidding and Contracting

Current Stage

Concept Stage: Specific projects are identified and conceptualized. There exists a basic economic model.

Timeline

No timeline.

Project Milestones

N/A.

ESG Impact

The project aims to structure the urban solid waste management service in the municipality of Teresina, state of Piaui, through concession or public-private partnerships. Although urban solid waste management services have good national coverage, the final disposal of tailings is still a major challenge. According to SNIS data, in 2017 about 39% of municipalities dispose of their solid waste in an environmentally inappropriate manner and the percentage of recycled waste is less than 2%. In Teresina, the household collection coverage rate for the urban population is 95.70%, out of a total of 578.63 t / day, of which 99.89% is destined for the municipal controlled landfill. Of the total collected per day, 0.11% (1.28t / day) corresponds to the material from the selective collection, which is destined to the Emaús Trapeiros de Teresina Entity.

There is currently no composting treatment or slurry treatment (it is being recirculated to the controlled landfill). The management/supervision of services related to solid waste collection and disposal is the responsibility of the Municipal Secretariat for Urban Development and Housing – SEMDUH, through the Public Cleaning Coordination, and the Urban Development Superintendencies, which are responsible for the management/supervision. of urban conservation services. Conventional home collection is done three times a week on alternate days. In the Center and popular housing estates, the conventional collection is daily, while selective collection occurs through Voluntary Delivery Points – ENP. The final disposal of the waste occurs in a municipal controlled public landfill located within the urban perimeter, where more than one hundred collectors are present, indicating a serious social problem.

The city of Teresina does not have a “door to door” recyclable waste collection. Since 2011, the systematic collection of material has been implemented at the Voluntary Delivery Points – PEV, for dry waste and the Waste Collection Points (container). Significant Waste Pickers work within the controlled landfill, and wagons work to collect solid waste from both the general population and hard-to-reach places. The Sorting Unit built in the landfill area is not being used by any cooperative and material from the ENPs, according to the City Hall, which is being passed on to a single organization. Autonomous collectors, cooperatives, and recycling companies are part of the intricate economic cycle of recycling materials, and generally, without direct interference from the public entity.

Therefore, solid waste management in the municipality of Teresina is quite incipient, with the possibility that the project that is in the process of structuring enables a concession with the collection of services through tariffs, directly from citizens, together with water bill. The technological route designed intends to implement sorting units in the municipality, in addition to a mechanical biological treatment plant and the final landfill for disposal of tailings. It is expected that with the new technology route to be implemented in the future concession, which should be structured for a period of 20 to 30 years, divert approximately 35% of the waste that is currently disposed of in controlled landfill.

Beneficiaries

The urban population of the city of Teresina, located in the state of Piaui. The urban population is approximately 767 thousand inhabitants, as determined in the 2010 Census.

SDG Goals

SDG 1: No PovertySDG 2: Zero HungerSDG 3: Good Health and Well-beingSDG 4: Quality EducationSDG 5: Gender EqualitySDG 6: Clean Water and SanitationSDG 7: Affordable and Clean EnergySDG 8: Decent Work and Economic GrowthSDG 9: Industry, Innovation and InfrastructureSDG 10: Reduced InequalitySDG 11: Sustainable Cities and CommunitiesSDG 12: Responsible Consumption and ProductionSDG 13: Climate ActionSDG 14: Life Below WaterSDG 15: Life on LandSDG 16: Peace and Justice Strong InstitutionsSDG 17: Partnerships to achieve the Goals

Rationale

SDG 6 & SDG 13

The project contributes significantly to SDGs 6 and 13 while contributing to the efficient and sustainable management of urban solid waste, minimizing the risk of soil and water contamination, as well as acting on the optimization of solid waste management, directly contributing to reducing greenhouse gas emissions.

Risks and Limitations

What are the key risks, constraints and dependencies related to the project?

Demands from interested parties in the bidding process and lawsuits

Risk mitigation and continuity

The project aims to establish a methodology for charging tariffs on the provision of services to be made directly by the user. In addition, performance indicators will be constantly checked to adjust for any issues.

Financing

Type of Investment

Equity

Financing Structure

Public Private Partnership

Secured Investment

$270,000.00, Brazilian Federal Government

Committed Government Funding

No.

National and Subnational Investors

No.

Committed Private Funding

Yes. Potential private partner, estimated in $61,000,000.00

Support

Technical Support Required

The constant involvement of municipal administrative units related to solid waste management is essential to the success of the project. The Teresina Regulatory Agency – ARSETE will be the regulator of the services to be granted. The exchange of experiences and the technological exchange are fundamental for the qualification and updating of the agencies involved in the structuring of the project, especially the city hall and the regulatory agency.

The support of international partners with expertise in the subject can be of great value in this process. However, the success of the project will only be guaranteed by the wide and prior disclosure of its objectives, informing and clarifying about its benefits and the opportunities involved with the implementation of the concession. In particular, disclosure to international partners and investors interested in participating in the bidding process for the concession. In addition, the need for support for constant dissemination after its implementation is paramount to ensure the sustainability of the enterprise, ensuring the effective involvement of all bodies concerned with the theme, the population and the entire municipality.

Stakeholders

Governmental Buy-in

Yes. National Level, Subnational/regional level.

Other Forms of Governmental Support

Technical advice to be provided by the government and specialized technical consultancy for the feasibility studies and development of the necessary documents for the bidding of the Concession Agreement.

National Ministries Involved

Ministry of Regional Development - Silvano Silverio da Costa and Sergio Cotrim.
Fund to Support the Structuring and Development of Concession Projects and PPP - Manoel Renato Machado Filho.

SubNational Ministries Involved

Municipal Secretariat of Concessions and Partnerships (Teresina)- Monique Menezes.

Other Entities Involved

Technical advice to be provided by the government and specialized technical consultancy for the feasibility studies and development of the necessary documents for the bidding of the Concession Agreement.

Licenses and Permits

No

Updates

  • 10th February 2020

    Cities Investment Platform in progress - updates pending

  • 10th February 2020

    Project featured on the Cities Investment Platform, which was launched at the Tenth Session of the World Urban Forum (WUF10)

Supporting Documents

No supporting documents included.

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