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How to get Your Project Financed

Are you looking for an incinerator that fits your waste tonnage? Just get a quote, ask for supplier credit or an investor to finance, fill in some forms and your project is financed, right? 

  

Wow. BIG Misunderstanding!

Even city admins and local brokers seem to believe in it. But in reality, with a waste concession and a supplier quote, your project might still be lightyears away from being investment-ready.

Overseas suppliers - don't get involved in Your waste management. Because nobody will take responsibility for Your waste and other local conditions.

Local suppliers - are usually sales agents or equipment brokers with good local networks - but with no prior experience or completed projects in the past.

Investors - want to see a short rate of return, with low investment risk and high profitability. All that must be proven by hard facts - not ideas and wishes.

A Word on Feasibility Studies

We see many feasibility studies that appear like academic copy & paste jobs or simply supplier marketing brochures. 

Feasibility Study Red Flags

  • discussing one technology only

  • no info on waste data source and/or methodology used

  • referring to non-transferable generalities not relevant local specifics

  • providing no case-specific project basic concept & design ​  

Such 'studies' are completely worthless. Even dangerous. Because they might base your 'business model' on supporting a pre-set fantasy.

Do this instead 

But to be successful, Asian Waste Projects need more local planning and engineering than in Japan, USA, or Europe - not less. 

What you need first is an experienced Developer able to drive your project. Set project basics like basic concept and design, performance and output targets, business model, and investment plan.

Key Questions to answer

  • which technologies are available for projects like mine?

  • which is the best to solve my specific local case, how and why?

  • how my project must be designed to be efficient, profitable, and clean?

Your To-Do List

1. Waste Composition, Sources & Dynamics

  • Waste is the raw material of all waste-related projects. Yet few waste owners or project developers have exact data on composition, moisture, heat value and hazards. Most data available come from unknown sources, generated with unknown methodologies more often than not based on too small or non-representative samples. Often figures that appear as factual and calculated turn out to be mere assumptions. We use ASTM Standard D5231 - 92 (2016).

 

2. Waste Logistics & Supply Security

  • Logistics are the traditional handover point between public and private sector. Yet being most important for private sector project profitability, they are taken for granted and remain unchecked. Does the supply side have what is required to reliably supply the contracted waste volumes to the project in the dedicated time window? Dumping whatever tonnage of waste collected at a landfill after arriving anytime chosen, is a very different type of operation than the reliable supply of a minimum tonnage of waste to a project in a fixed time frame. Vehicle fleet, collection routs, loads, rotations, central dispatch for operations and maintenance are some of the issues looked at.

 

3. Project Site & Local Resources

  • Projects often start with a site in mind, assuming that this one is suitable and the best. Often this is not the case and the project collapses later on. We make sure that available but unsuitable sites are excluded early on.  Look at the fundamentals such as general geological, hydro and topographical suitability,  availability and quality of vital infrastructure and resources needed such as water, power, discharge of water and solid residue, traffic considerations.

 

4. Plant Design & Technology Benchmark

  • Asian waste projects markets are supply-driven, start with a vendor's proposal. Is the technology offered the right one for the purpose, is it the best value for money, what are the pro's and con's that come with it. What does it not provide and guarantee? 

 

5. True Revenue Streams & Markets

  • You need to analyze markets and realistic revenues from products such as refuse-derived fuels, RDF, glass, metal, plastics, paper and cardboard, steam and electric power. Knowing future sales potentials and revenues is key for any project.

 

6. Emissions, Downstream Infra & Liabilities

  • Emission Control, Safe Residue Management & Final Disposal are costly and most sensitive for any waste project. Local communities are very concerned and critical about pollution of air, soil, water and food sources such as fish, farm animals and produce. While legal disposal options for hazardous residues often don't exist. Which kind of emission limits are achievable, how can they be reduced, final and safe disposal of hazardous materials be secured.

 

7. Financial Performance & Models

  • Waste is notoriously inconsistent, variable in almost any parameter. The material doesn't behave as documented on paper. Many waste projects underestimate the unique dynamics of waste cost and revenue and fail. Inside 248 successful projects in 30 years, we understand waste like none else. Our calculations are more accurate and realistic than anywhere else. Get realistic figures on profitability, payback period, present and future value, cost and risks to support your project decision.

 

8. Local Interests & Objections

  • Local people, communities are not experts in waste management nor technology. But they are the ones directly affected if,

  • unfeasible projects are pushed forward 

  • a design does not fit local waste

  • technology is ineffective and polluting

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