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Urban solid waste treatment and recovery plant – Pacific Region

The project aims to install a municipal solid waste treatment and recovery plant in the Pacific Region, with a view to reducing the disposal of organic waste in landfills.

Summary


Total Investment: To be defined (prefeasibility phase)

This project aims to install a treatment and recovery plant for urban solid waste in the Pacific Region, focused on reducing the disposal of organic waste in landfills through the generation of renewable energy (biogas) and the production of organic fertilizers. Its implementation directly contributes to national decarbonization goals and the transition toward a circular economy.
 

Objective

To install a treatment and recovery plant for urban solid waste in the Pacific Region that generates sustainable income from the sale of renewable energy and organic fertilizers.

Key Goals

  • Reduce the disposal of organic waste in landfills.
  • Generate renewable energy (biogas) and produce organic fertilizers.
  • Design long-term energy supply and waste disposal contracts that ensure project viability.
  • Align the project with public policies such as PGIRS and POT.
 

Market Opportunity

The inefficient management of waste in Colombia presents a significant opportunity: only 14% of urban solid waste is recycled, while the majority ends up in landfills. This project addresses that gap through a model that transforms organic waste into biogas and fertilizers, reducing municipal costs and generating value-added products for agriculture and the energy sector.

ESG Considerations

Environmental: Reduction of landfill waste, production of clean energy, and sustainable fertilizers.
Social: Community inclusion, creation of green jobs, and improved urban quality of life.
Governance: Interinstitutional coordination, risk management, and strengthening of the environmental regulatory framework.

Financial Indicators


Total Investment

To be defined (prefeasibility phase)

VPN

N/A (los valores de proyección aún no se encuentran disponibles, pendientes de estudios de factibilidad)

Structure

Private capital with institutional support (BID Invest, Cali City Hall, Ministry of Environment)

Revenue Model

Sale of energy, sale of fertilizers, and waste management premiums

Key Partners

BID Invest, Cali City Hall, and Invest Pacific

OPEX

Collection, processing, storage, and transportation costs for biogas and fertilizers

Project Schedule


Prefeasibility studies

Predecessor: Letter of intent

Milestone: Prefeasibility study

Feasibility studies

Predecessor: Prefeasibility

Milestone: Feasibility studies

Policy alignment (PGIRS and POT)

Predecessor: Feasibility

Milestone: Policies and POT defined

Plant construction

Predecessor: Policy alignment

Milestone: Completed plant

Start-up and continuous operation

Predecessor: Commissioning

Milestone: Start of operations

Business Model


Key Partners

  • Invest Pacific
  • BID Invest
  • Santiago de Cali City Hall
  • Ministry of Environment and Sustainable Development

Key Activities

  • Prefeasibility and feasibility studies.
  • Alignment with public policies.
  • Construction, commissioning, and operation of the plant.

Value Proposition

  • Conversion of organic waste into renewable energy and fertilizers, driving the circular economy and contributing to national sustainability objectives.

Customer Segments

  • Municipalities (as waste suppliers and energy consumers).
  • Agricultural producers (fertilizer users).

Revenue Streams

  • Sale of energy.
  • Sale of fertilizers.
  • Urban waste management premium.

Cost Structure

  • Waste collection and transportation systems.
  • Bioreactor maintenance.
  • Biogas and fertilizer storage.

Risk Plan


Event Probability Impact Rating Mitigation Contingency
Lack of coordination among public entities High High High Establish interinstitutional teams and permanent communication channels Seek mediation or higher-level intervention
Insufficient regulatory support frameworks Medium High High Collaborate with public entities and BID Invest Seek support from the National Government
Business stability and viability Medium High High Long-term supply contracts Establish financial contingency mechanisms
Amount to be determined following pre-feasibility studies

STATE: In progress
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In progress Amount to be determined following pre-feasibility studies