ID: 24590

15.11.21

Investment projects and startups in Ukraine

Landfill for municipal solid waste (MSW) neighbouring with Kiev

The project of organizing a landfill for municipal solid waste (MSW) neighbouring with Kiev on the basis of an existing waste disposal plant

Location:

Киевская область, Украина

  • Sector: Water supply and waste treatment
  • Business activity: Collection, treatment and disposal of waste
  • Stage: Growth or Expansion
  • Project cost: $2 000 000
  • Type of investment: Equity

 

Problem

Kiev is on the verge of a "garbage collapse" due to the expected closure in 2023 of the largest “No. 5” landfill in Ukraine located in the village of Pidhirtsi (Kyiv region), which annually receives 450,000 tons of waste. Nowadays, there is a lack of waste processing facilities near Kyiv, and is unlikely to appear in the near future.

The media also raised the problem, for example:

It is not possible to organize a new landfill in the vicinity of Kiev due to the lack of sites with the appropriate land purpose and the necessity of approval from the local communities.

Solution

One of the few solutions to the problem might be a project to launch a new landfill with a disposal capacity of more than 1 000 000 tons on the basis of an existing landfill facility, which is designed to dispose of 400 000 tons of waste with a further prospect of implementation on the basis of a waste processing plant site.

About the company

The landfill is located 35 km away from Kyiv.

Today, the enterprise accepts solid household waste from residential and public buildings, institutions, enterprises, as well as street, garden and park waste.

Industrial waste of the 4th hazard class can be used at the solid waste landfill as an insulating layer of soil.

The main code and type of waste disposal operations is: D1 - storage (dumping) on ​​the ground or underground. The current condition of the waste disposal site is “operating”. The main activity code is: 38.21 Treatment and disposal of non-hazardous waste.

The passport of the waste disposal site has been developed, approved and agreed upon.

The current design volume of waste disposal is 200,000 m3. Boundaries were established along the perimeter of the landfill and observation wells were placed. Drinking water tests are carried out twice a year. There is no deviation from the norms according to the research protocols. Investigations of air samples at the border of the SPZ are also carried out. According to the results of the study of the air in populated areas, the excess of the norms was not established. Studies of soil samples are being carried out, according to the results of which, the results of the studies correspond to the hygienic standard.

At the moment the landfill is loaded at 25%.

The company operates and generates profit.

Number of employees: 20 people.

The enterprise has transport on its balance sheet: YUMZ excavator, 35-63 garbage truck, DT-75 bulldozer, GAZ car, 35-62 flusher truck and 60-35 flusher truck.

Land plot: 11.5 hectares (permanent use certificate), including:

10.6 ha – the garbage dump (permanent use certificate). Purpose of land: 11.02 For placement and operation of the main and auxiliary buildings and constructions of the enterprises of processing, machine-building and other industry for municipal needs.

0.9 ha – the base (warehouses, garage complex). Purpose of the land: 03.12 For the construction and maintenance of communal buildings for communal needs.

Investment project

There are several scenarios for the development of the landfill:

  1. To increasing the volume of landfills on the basis of the current waste landfill to 400 000 m3 of waste (according to a simplified model)
  2. Capital investments in the landfill project with a volume of 1 000 000 m3 of waste on the basis of a landfill with construction works (pit, organization of drainage system, etc.).

Project 1 scenario:

Name

Unit

Q-ty

Landfill area

m2

106 000

Price for m2

UAH

496

Tariff

UAH

444

Costs per 1 m3

UAH

172,26

Total capacity

m3

400 000

Garbage disposal area per year

m3

100 000

Financial model

 

2021

2022

2023

2024

2025

Revenue, USD

 

1 772 624

1 861 255

1 954 317

2 052 033

Operational expenses, USD

 

687 730

722 117

758 222

796 133

CAPEX, USD

-2 000 000

 

 

 

 

Investor’s Cash Flow, USD

-2 000 000

1 084 894

1 139 138

1 196 095

1 255 900

Cumulative Cash Flow, USD

-2 000 000

- 915 106

224 032

1 420 127

2 676 027

Project efficiency indicators:

  • NPV - 1 767 421 USD
  • IRR - 44%
  • Payback Period, years - 1,8

Contacts

Алексей Олейников

[email protected] +380677136571

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