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Sustainable management of construction and demolition by-products – Pacific Region

This project seeks to implement the first Construction and Demolition Waste (CDW) recycling plant in the city of Cali, through a Public-Private Partnership (PPP) scheme that guarantees efficient, sustainable and profitable management of such waste, transforming it into reusable eco-materials for the construction sector.

Summary


This project seeks to implement the first Construction and Demolition Waste (CDW) recovery plant in the city of Cali, under a Public-Private Partnership (PPP) scheme that ensures efficient, sustainable, and profitable management of such waste, transforming it into reusable eco-materials for the construction sector.
 

Objective

To generate returns on investment through the start-up and efficient operation of the first CDW recovery plant in Cali, ensuring a constant income flow under a PPP contract.
 

Key Goals

  • Award and sign the PPP contract within 18 months.
  • Reach 100% of installed operational capacity by the second year.
  • Maximize cash flow and plant utilization.
  • Consolidate commercial alliances for CDW supply and eco-material sales.
 

Market Opportunity

Cali lacks an integrated and legal system for CDW management, which generates high logistical costs and environmental problems. The project already has zoning, environmental approval, and validated prefeasibility studies, reducing risk. There is a captive supply of waste and guaranteed demand for eco-materials driven by regulation and the commitment of construction associations (e.g., CAMACOL). It is the first project of its kind in the city, ensuring a leadership position with low regulatory risk and stable long-term returns.
 

ESG Considerations

Environmental: Reduction in raw material extraction, lower carbon footprint, and improved resource efficiency.
Social: Enhances urban sustainability and quality of life for Cali’s citizens.
Governance: PPP structure supported by Cali City Hall and BID Invest, ensuring transparency, public bidding, and regulatory stability.

Financial Indicators


Total Investment

$23,404,603.65 (2022)

Structure

100% private

Revenue Model

Dual (eco-material sales + processing fee)

Income Flow

Guaranteed income flow through the PPP contract

Guarantors

BID Invest and local entities act as financial guarantors

Project Schedule


Initial identification and structuring

Duration: 9 months

Milestone: Project launch

Technical, legal, financial, and risk feasibility studies

Duration: 6 months

Milestone: Feasibility concept issued

Contracting process

Duration: 6 months

Milestone: PPP contract awarded

Execution and construction

Duration: 18 months

Milestone: Contract closure

Start of commercial operation

Duration: —

Milestone: Guaranteed income flow

Business Model


Key Partners

  • Invest Pacific
  • BID Invest
  • Santiago de Cali City Hall (U.A.E.S.P.)

Key Activities

  • Efficient plant operation (certified crushing and sorting).
  • PPP contract management.
  • B2B commercialization of eco-aggregates.

Value Proposition

  • Legal and integrated solution for CDW management in Cali with governmental and environmental backing.
  • Transforms an urban problem into a sustainable and profitable asset based on Circular Economy principles.

Customer Segments

  • Construction companies.
  • Developers.
  • Local government for public works.

Revenue Streams

  • Eco-material sales.
  • Disposal/processing fees.

Cost Structure

  • Operating expenses (energy, maintenance, labor, logistics).
  • CAPEX for construction and industrial technology.

Risk Plan


Event Probability Impact Rating Mitigation Contingency
Non-award of PPP contract Medium High High Solid technical and financial proposal Project diversification
Insufficient CDW volume Low Medium Medium Off-take contracts with key builders Regulatory pressure on the City Hall
Cost increase (OPEX/CAPEX) Medium Medium Medium Fixed-price EPC contract Use of contingency reserves
Regulatory/political risk Low High Medium PPP structure supported by BID Invest and City Hall Execution of guarantees and compensation clauses
USD $ 23.404.603

STATE: In progress
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In progress USD $ 23.404.603