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:
- https://biz.liga.net/ekonomika/all/novosti/klichko-anonsiroval-dlitelnoe-zakrytie-krupneyshego-musornogo-poligona-ukrainy
- https://rubryka.com/ru/article/poligon-5-kyiv
- https://kievvlast.com.ua/news/kievspetstrans-prodolzhaet-rekultivatsiyu-uchastka-1-poligona-bytovyh-othodov-v-podgortsah
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:
- 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)
- 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
