Proposal Project Lingkungan - DOC by onx12605

VIEWS: 198 PAGES: 12

More Info
									Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                 Community Development Carbon Fund
                                   Project Idea Note (PIN)

Description of size and quality expected of a PIN

Basically a PIN will consist of approximately 5 pages providing indicative information on:
          the type and size of the project
          its location
          the anticipated total amount of greenhouse gas (GHG) emission reductions
             compared to the “business-as-usual” scenario (which will be elaborated in the
             baseline later on at Project Design Document [PDD] level)
          the suggested crediting life time
          the suggested Certified Emission Reductions (CER) price in US$/ton CO2-equivalent
             reduced from the clean development mechanism (CDM) project
          the financial structuring (indicating which parties are expected to provide the
             project’s financing)
          a description of how the project will improve the welfare of the community or
             communities involved in it

While every effort should be made to provide as complete and extensive information as
possible, it is recognised that full information on every item listed in the template will not
be available at all times for every project.

                          Community Development Carbon Fund (CDCF)

                                    Key Project Eligibility Criteria

 CDCF projects need to comply with a number of eligibility criteria, including the following two:

 1. The CDCF will facilitate almost exclusively projects that are compatible with the definition
 of “small-scale CDM project activities” in accordance with decision UNFCCC 17/CP.7 (see This decision defines small projects as: a) renewable energy project
 activities with a maximum output capacity equivalent of up to 15 megawatts (or an appropriate
 equivalent); b) energy efficiency improvement project activities which reduce energy consumption,
 on the supply and/or demand side, by up to the equivalent of 15 gigawatthours per year; or, c) other
 project activities that both reduce anthropogenic emissions by sources and that directly emit less
 than 15 kilotonnes of carbon dioxide equivalent annually. Decision 17/CP.7 also creates a non-
 exclusive list of 14 small-scale project categories and specifies simplified baseline and monitoring
 methodologies for each category. Proposed projects that do not conform to one of these categories,
 as well as a revision of the existing methodologies, may be proposed for consideration by the
 Executive Board.

 2. Each project must lead to improvements in the material welfare of the community or
 communities involved in it. Where there is no identifiable community integral to the Project, the
 CDCF allocates a portion of the payments for the emission reductions to the acquisition and
 provision of goods and/or services designed to benefit the local community or communities which
 have geographical, cultural or historical associations with the project site or project-utilized
 resources. Examples of the types of goods and services which may be provided include electricity
 for schools, health clinics, workshops, potable water, teaching or medical services. In most cases,
 the project sponsor will provide the benefits either directly or through contracting a third-party

236e2568-7575-4d7f-9517-c0264e695c9c.doc        dc                                                  1
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
Template for PINs

                                    PROJECT IDEA NOTE

A. Project description, type, location and schedule

Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction

Technical summary of the project          Date submitted:

   Objective of the project        Avoidance of present and future methane emission from the City of
                               Bekasi landfill through; 1. Methane gas flaring and small scale electricity
                               generation, and 2. Removal of decomposing organics from the landfill for
                               sales as compost. Recycling the existing landfill to provide sustainable
                               solid waste disposal, protecting the local environment and health impacts
                               on the local community and improved collection services in the city.
   Project description and         OVERVIEW
proposed activities (including      The City of Bekasi is situated on the eastern boundary of DKI Jakarta
a technical description of the in West Java, Indonesia. Its residential population is approximately 1.9
project)                       million people and due to commercial activities its experience a daily
                               increase in population of around 15 to 20%. The city suffers from an
                               inability to cope with waste generation and disposal similar to many cities
                               in Indonesia. In addition to it’s own MSW problems the final disposal site
                               for DKI Jakarta’s MSW, LPA Bantargebang 104 hectare landfill, is
                               located within the city boundaries. Waste disposal is therefore of major
                               concern for the residents and government of the city.
                                   In 2002 Bekasi established it’s own final disposal site, TPA Sumur
                               Batu. This 10 hectare landfill is located on the north-east boundary of LPA
                               Bantargebang and has a design capacity of approximately 2 million m3.
                                   The city per capita waste generation rate is estimated at 0.95kg/capita,
                               which takes into account the daily influx of workers. This is equivalent to
                               an estimated 6,000 m3 / day or 1,800 tonne/day (at 0.3 tonne / m 3). The
                               current waste collection service is estimated at only 35%, giving a daily
                               disposal volume of 2,100m3 or 631 tonne.
                                   Based upon forecast population growth and improvement in collection
                               services this landfill has a waste receiving life of only 7 to 8 years. Once
                               capacity is reach additional land must be located for another landfill.
                                   To provide an appropriate and sustainable solution to these problems
                               this project proposes the implementation a new landfill management
                               system incorporating methane gas destruction (flaring and electricity
                               production) and organic removal for compost product sales. This
                               combination of landfill management techniques will enable long-term
                               recycling of the landfill area and improved environmental management
                                   Organic Recovery
                                   The process of landfill recovery is the removal of the portion of
                               decomposed organic from landfills for reuse as compost/soil
                               conditioner/fortified organic fertiliser. Based upon research and landfill
                               recovery activities in Indonesia recovered organic for compost purposes
                               are classified as organic material that passes through a 3mm screen.
                               Organic material larger than this (non degraded) are classified as suitable
                               for processing as mulch or returned to landfill for further anaerobic

236e2568-7575-4d7f-9517-c0264e695c9c.doc         dc                                                 2
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                                  As organic waste decomposes under anaerobic conditions in landfills
                              methane gas is produced and emitted to the atmosphere. The pathway of
                              decomposition of organic waste in landfills and the resultant formation of
                              methane gas is well documented as a microbial mediated process of four
                              distinct stages requiring several trophic groups of bacteria. The principal
                              biodegradable chemical constituents of organic waste responsible for this
                              methane production are cellulose, hemicellulose and protein (Barlaz et al.,
                              1989). Laboratory studies have verified that cellulose and hemicellulose
                              content (dry weight) contributes to 91% of methane generation within
                              landfills (Barlaz et al., 1989). Daniel ed. (1993) calculated the methane
                              potential of cellulose and hemicellulose, as 415 and 424 litres of methane
                              at Standard Temperature Pressure (S.T.P) for every kilogram of cellulose
                              and hemicellulose degraded, respectively based up the Mass Balance
                              Equation (Parkin and Owen, 1986).
                                  The timeframe for organic degradation under anaerobic conditions is
                              normally classified as; Readily (putrecibles, garden waste), Moderate
                              (paper) and Slowly (wood) Degradable and is dependant on the cellulose/
                              lignin ratio (Bookter et. al. 1982). Boda (2002) determined that free
                              cellulose is the primary degraded material in the initial rapid stage of
                              degradation and once cellulose is reduced to a range of 15 –20% of the
                              waste, degradation occurs for the remaining cellulose along with lignin
                              and hemicellulose.
                                  From research undertaken on Indonesian landfills organic recovery for
                              compost material can commence from 4 to 5 years after disposal and
                              closure of a cell. During this time period all of the readily degradable
                              organic waste has decomposed and sterilization achieved due to long term
                              exposure to temperature in the thermophilic range. For time periods
                              greater than this, decomposition of other slowly degradable organic waste
                              (sized timber, coconut shells, rattan, branches, plant fibre, textiles etc)
                              continues. The process of sterilization continues under thermophilic
                              conditions and then within the mesophilic temperature range as the process
                              of decomposition slows over time. Full decomposition of waste within
                              landfill will span many decades.
                                  Analysis of the chemical composition of recovered organics provides
                              an accurate estimate of the organic resources remaining in the landfill cell,
                              their state of decomposition and the remaining reserves of degradable
                              material that would be available for methane production. This then allows
                              for an estimate of the future potential methane that may be produced if
                              these organics were to remain in the anaerobic environment of the landfill.
                                   As an example, the chemical composition analysis of the two fractions
                              of organics recovered a cell in the Makassar landfill, which commenced
                              receiving MSW in 1994 and was closed in 1997, has determined that the
                              remaining cellulose and hemicellulose is; Compost Fines – cellulose
                              16.5%, hemicellulose 0.44% and Oversized Degradable Organics –
                              cellulose 42.4% and hemicellulose 10.1% (Butler 2005).
                                  Using this approach to estimate methane avoidance from recovering the
                              organic content of municipal landfills in Indonesia provides an opportunity
                              for methane emissions reductions and assist in improving municipal solid
                              waste management.
                                  Methane Capture and Destruction
                                  As outlined previously, the rate of methane production is related to the
                              amount of degradable cellulose, hemicellulose and lignin available, their

236e2568-7575-4d7f-9517-c0264e695c9c.doc         dc                                                 3
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                              degradation behaviour and the environmental conditions inside and outside
                              of a landfill. Methane generation generally follows two phases, initial
                              rapid degradation with a peak of methane production within approximately
                              4 to 5 years and a slower or decelerated rate of methane production that
                              can last many decades.
                                  Organic recovery abatements/avoids future methane production in this
                              slower stage by removing all organic carbon sources from a landfill cell.
                              The second component of this project, methane capture and destruction,
                              deals with methane production as it occurs. Landfill gas collection systems
                              and small-scale electricity generation for use on site by the organic
                              recovery facility are to be established. A combination of these two
                              approaches will therefore maximise the abatement of methane produced by
                              MSW within the landfill.
                                  This cycling of the landfill cells will be a continuous process. Allowing
                              for maximum abatement/avoidance of methane gas and a continuous
                              income stream from compost sales.
                                  Criteria for Small Scale CDM project activities
                                  The decision of UNFCCC 17/CP.7 defining “small-scale CDM project
                              activities” as those with direct project emissions less than 15 kilotonnes of
                              carbon dioxide equivalent annually is appropriate for this project.

                                       1.   Methane gas formation in landfills is through the biochemical
                                            decomposition of biogenic carbon (refer Mass Balance Equation

                                                  Mass Balance Equation (Parkin and Owen, 1986)

                                                  CnHaObNc + (n – a/4 – b/2 – 3c/4)H2O →
                                                         (n/2 – a/8 + b/4 + 3c/8)CO2 + (n/2 + a/8 - b/4 -
                                                  3c/8)CH4 + cNH3

                                                                 Cellulose (C6H10O5), and
                                                                 Hemicellulose (C5H8O4)

                                            The IPCC methodology makes reference to biogenic carbon (A &
                                            B citied below) and that CO2 emissions from this source should
                                            not be considered net anthropogenic CO2.

                                            The combustion of landfill gas produces CO2 emission. As this
                                            CO2 emission is of biogenic carbon origin they are therefore not
                                            considered as direct project emissions.

                                            (A) Extract from; Revised 1996 IPCC Guidelines for National
                                            Greenhouse Gas Inventories: Reference Manual,

                                            Chapter 6 Waste, 6.1 Overview;

                                                 “Decomposition of organic material derived from biomass sources (e.g.,
                                                 crops, forests) which are regrown on an annual basis is the primary source
                                                 of CO2 released from waste. Hence, these CO2 emissions are not treated as
                                                 net emissions from waste in the IPCC Methodology.”

                                            Chapter 6 Waste, 6.5 Emissions from Waste Incineration

236e2568-7575-4d7f-9517-c0264e695c9c.doc          dc                                                                4
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                                               “A large fraction of the carbon in waste combusted (e.g., paper, food waste)
                                               is derived from biomass raw materials which are replaced by regrowth on
                                               an annual basis. These emissions should not be considered net
                                               anthropogenic CO2 emissions in the IPCC Methodology”

                                         (B) Extract from; Appendix B of the simplified modalities and
                                         procedures for small-scale CDM project activities

                                         Type III Other Activities, IIID Methane Recovery

                                               1. This project category comprises methane recovery from coalmines, agro-
                                               industries, landfills, wastewater treatment facilities and other sources.
                                               Measures shall both reduce anthropogenic emissions by sources and directly
                                               emit less than 15 kilotonnes of carbon dioxide equivalent annually.

                                    2.   The project utilises two energy source; (i) Electricity for the
                                         Organic Recovery Facility and the LFG extraction/destruction
                                         system and (ii).Diesel fuel for earth moving equipment.

                                         i.         This project proposes that electricity for the Organic
                                               Recovery Facility will be generated onsite from the LFG as
                                               well as for the extraction/destruction system. Therefore there
                                               will be only minimal emissions from the LFG generator and
                                               flaring system.
                                         ii.        Direct project emissions will occur due to the use of earth
                                               moving equipment for landfill mining and rehabilitation of the
                                               landfill cell structures. As a guide to emissions from diesel
                                               fuel use for project activities the emission value of 2.7 kg of
                                               CO2equivalent / litre (Energy Strategies 2000) multiplied by
                                               the expect diesel fuel consumption of 60,000 litres per year
                                               equates to 162 tonne CO2equivalent per year. Although these
                                               emissions are small the project will investigate other cleaner
                                               fuel sources.

  Technology        to      be       Describe in less than 5 lines. Please note that support can only
employed                         be provided to projects that employ commercially available
                                 technology. It would be useful to provide a few examples of where
                                 the proposed technology has been employed.
                                     Organic Recovery
                                     The primary processing technology employed is mechanical separation
                                 through trommel screens of various screen hole diameters. Non-organic
                                 and non-degraded organics are separated out from the compost fines. This
                                 technique has been adapted from various material separation operations
                                 and has been developed and used in Indonesian on the Makassar landfill
                                 since 2000.
                                     Methane Capture and Destruction
                                     The project will employ proven technology and engineering approach
                                 to landfill gas extraction, flaring and small-scale electricity generation.
                                 These systems have been established on many landfills around the world
                                 but this will be the first to be established in the Province of West Java,
  Small-scale                    Please indicate to which of the categories below the project belongs
                                 (see details in If you have marked
                                 category “N”, please provide brief information that, in your view,
                                 may be useful to propose a new project category or a revised

236e2568-7575-4d7f-9517-c0264e695c9c.doc         dc                                                                5
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                              methodology for consideration by the Executive Board.

                                       This project proposal is bundled, having two components,

                                       Project Component 1 – Methane Capture and Destruction
                                       This component utilises Type III Other Project Activities Category D
                                    Methane Recovery of Appendix B1 of the simplified modalities and
                                    procedures for small-scale CDM project activities

                                       Project Component 2 – Landfill Organic Recovery

                                                        Type III - Other Project activities
                                        Type III. E. Methane avoidance of Appendix B of the simplified
                                    modalities and procedures for small-scale CDM project activities.
                                        This category is applicable to this proposal in that it deals with organic
                                    matter that would have otherwise been left to decay as a result of
                                    anthropogenic activities. This would fit the description of organic waste
                                    disposed of in municipal landfill.
                                        The criteria/method/means/measures of methane avoidance differs in
                                    that this proposal achieves this through the removal of the organics from
                                    the landfill and recycling as compost whilst Appendix B stipulates the
                                    following; “decay is prevented through controlled combustion and less
                                    methane is produced and emitted to the atmosphere”
                                        The view is held that a revision of Type III. E. be considered allowing
                                    for methane avoidance through recover and reuse of the decaying
                                    landfilled organics as compost or that a new project category is accepted

   Project developer                   The City of Bekasi proposes to enter into commercial cooperation with
                                   a private sector investment partner for this project
   Name      of    the     project     To Be Advised
   Organizational category             Private Company

   Other function(s) of the            Operational entity / Technical Provider / Management
project developer in the project
   Summary of the relevant
experience of the project
   Contact person                      Ken Butler
   Telephone / fax                     (62 411) 858669
                                       mobile (62) 81342460151
   E-mail and web address, if
   Project sponsors
   (List and provide the following information for all project sponsors)
   Name of the project sponsor         Municipal Government of the City of Bekasi
   Organizational category             Government
   Address       (include     web      Jalan Ir H Juanda no 100, Kota Bekasi, Jawa Barat,Indonesia
address, if any)
   Main activities                     Municipal government

236e2568-7575-4d7f-9517-c0264e695c9c.doc           dc                                                     6
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
   Summary of the financials     Summarize the financials (total assets, revenues, profit, etc.) in
                              less than 5 lines.
   Type of the project           Abatement
   Greenhouse gases targeted     CH4
   Type of activities            Abatement / Avoidance
   Field of activities
     d. Waste management         Capture of landfill methane emissions / utilization of waste
   Location of the project
   Region                        South East Asia

   Country                          Indonesia
   City                             Bekasi, West Java Province
   Brief description    of   the    The project will be located at the City of Bekasi landfill, TPA Sumur
location of the plant            Batu which is situated in Kecamatan Bantargebang,

   Expected schedule
   Earliest project start date       1st quarter 2006
   Estimate of time required         Time required for financial commitments: 2 months
before becoming operational          Time required for legal matters: 1 months
after approval of the PIN            Time required for negotiations: 1 months
                                     Time required for construction: 3 months
   Expected first year of CER        2006
   Project lifetime              Continuous / Indefinite
   Current status or phase of    Pre Feasibility Study completed in draft form. Feasibility and
the project                   Environmental Impact Studies are planned

   Current   status    of   the    Letter of No Objection is available / Letter of Endorsement is
acceptance of the Host Country under discussion or available / Letter of Approval is under
                                discussion or available / Host Country Agreement is under
                                discussion or signed / Memorandum of Understanding is under
                                discussion or available / etc.
                                   (mention what is applicable)
   The position of the Host        The Host Country
Country with regard to the          a. Signed and ratified to the Kyoto Protocol
Kyoto Protocol

B. Expected environmental and social benefits

   Estimate of Greenhouse           Annual:
Gases abated (in metric tons        Up to and including 2012: xx tCO2-equivalent
of CO2-equivalent)                  Up to a period of 10 years: xx tCO2-equivalent
                                    Up to a period of 7 years: xx tCO2-equivalent
                                    Up to a period of 14 years:
                                       3,100,000 tCO2-equivalent from Organic Mining
                                       5,100,000 tCO2-equivalent from Methane Destruction
                                       8,200,000 tCO2-equivalent Project Total
  Baseline scenario                 CDM projects must result in GHG emissions being lower than
                                 “business-as-usual” in the Host Country. At the PIN stage questions
                                 to be answered are at least:

                                          What is the proposed Clean Development Mechanism
                                           (CDM) project displacing?

236e2568-7575-4d7f-9517-c0264e695c9c.doc       dc                                                 7
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:

                                       The organic content in municipal waste disposed of in landfills
                                   produces methane gas as a bi-product of anaerobic decomposition. This
                                   process of anaerobic decomposition will continue for many decades until
                                   all available organic carbon is degraded.
                                       Since receiving MSW in 2002 it is estimated that approximately
                                   558,000 tonne of Organic Waste has been deposited in the landfill. Based
                                   upon the forecast population growth and improvements in collection
                                   services in the City of Bekasi it is expected that approximately 7,400,000
                                   tonne of Organic Waste will be generated and disposed of during the 14-
                                   year period of this proposal (2006 to 2019)1.
                                        The organic waste disposed of during the period 2002 to 2019 will
                                   generate and emit methane gas until all available organic carbon resources
                                   are degraded. Calculations using the First Order Decay Model, forecast
                                   these future emissions at approximately 1,200 x 10 6 m3 methane,
                                   equivalent to approximately 15.0 x 106 tonne CO2equivalent2.
                                       Through the combination of methane destruction during generation and
                                   avoidance of future methane generation through organic mining this
                                   proposal estimates that a minimum of 8.2 x 10 6 tonne CO2equivalent will
                                   be abated during the 14-year period (2006 to 2019) of this proposal.

                                           What would the future look like without the proposed CDM

                                      Indonesian environmental regulations with regard to municipal landfills
                                   are limited in their guidelines for reducing the environmental impacts of
                                   methane production and emissions. Without the financial means to
                                   improve landfill management municipal government will be forced to
                                   continue the current practice of “controlled open dumping”
                                      The existing barriers of the compost market, especially pricing, cannot
                                   be overcome without some form of price subsidy. The market barriers
                                   impact on the productions levels and therefore the timeframe for landfill
                                   rehabilitation and emissions reductions.

                                      The relevant Indonesian environmental regulations are;

                                           1. Decree Concerning Types Of Businesses Or Activities
                                              Required To Prepare An Environmental Impact Assessment,
                                              Minister Of State For The Environment, Decree No. Kep-
                                     This regulation stipulates that an Environmental Impact Assessment
                                   must be undertaken for the following activities;
                                               Garbage disposal using controlled landfill or sanitary
                                                   landfill systems >=800 ton/ha
                                               Garbage disposal using open dumping systems >=80
                                           2. Regulation Regarding Environmental Impact Assessment,
                                                Government Regulation Number 51 of 1993

      refer. Bekasi PIN_CDCF Attachments.doc
      refer. Bekasi PIN_CDCF Attachments.doc

236e2568-7575-4d7f-9517-c0264e695c9c.doc         dc                                                   8
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                                        Environmental impact assessment (Analisa Mengenai
                                        Dampak Lingkungan, or AMDAL) is the process of studying
                                        the significant impact of a proposed business or activity on the
                                        environment, which is required as part of the decision-making
                                 An Environmental Impact Assessment must include the following
                                        1. Environmental Impact Statement,
                                        2. Environmental Management Plan, and
                                        3. Environmental Monitoring Plan.
                                          3. Decree             Concerning           Guidelines           For
                                              The        Determination       Of     Significant     Impacts,
                                              Head Of The Environmental Impact Management Agency,
                                              Decree Number Kep-056 Of 1994
                                                    1. A significant impact shall mean any fundamental
                                                        change in the environment caused by a business or
                                                        activity; Article 16 of Law Number 4 of 1982 states
                                                        that any proposed activity which is predicted to have
                                                        a significant impact on the environment is required
                                                        to be subject to the environmental impact assessment
                                           4. Law Concerning Environmental Management, Law No. 23
                                              Of 1997
                                              Article 3
                                              Environmental management which is performed with a
                                              principle of national responsibility, a principle of
                                              sustainability, and a principle of exploitation, aims to create
                                              environmentally sustainable development in the framework of
                                              the holistic development of the Indonesian human and the
                                              development of an Indonesian community in its entirety which
                                              is faithful and devoted to God the Almighty.

                                      Whilst the previously mentioned regulations provide a basis for
                                  environmental management of landfills they do not specifically provide
                                  regulations that, if implemented, would reduce the production and
                                  emissions of methane. In addition it is recognised in the following Decree
                                  that the capability of all levels of government to fully implement the
                                  environmental Laws and regulations is limited.

                                          4.   Decree Concerning General Guidelines For The
                                               Preparation Of Environmental Impact Assessment, Minister
                                               Of State For The Environment, Decree Number Kep-

                                               Chapter VI Evaluation of Significant Impacts
                                               2. Basic Management Studies

                                                d.    The extent of areas which may be potentially affected by
                                                      these significant impacts, whether these impacts will be
                                                      experienced locally, regionally, nationally or even
                                                      internationally in areas beyond the boundaries of
                                                      Indonesian territory. Thus, the proposed effort to

236e2568-7575-4d7f-9517-c0264e695c9c.doc         dc                                                    9
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                                           manage these impacts should be clearly described,
                                           taking into consideration the government's capability,
                                           at district, municipal, provincial, national and
                                           international levels, to deal with the negative impacts
                                           and to enhance the positive impacts.

                                           What would the estimated total GHG reduction be?

                                      During the period 2006 to 2019 (14 year period) the estimated
                                   reduction is 8,200,000 tonne CO2equivalent.

                                   If the project is a “small scale CDM project activity” according to
                                   decision UNFCCC 17/CP7, please provide brief information on
                                   additionality by barrier analysis or cost analysis (see details in
                                       (About ¼ - ½ page)

                                      Institutional Barrier, limited      financial   and   human    resources,
                                   environmental regulations

                                      Compost Market Barriers; Product price, awareness/education (farmers
                                   and government agencies), transportation costs, distribution and sales

                                       Commercial Barriers; Capital cost of processing oversized organic
                                   fraction as opposed to returning to landfill for natural decomposition, No
                                   commercial opportunity for electricity sales due to the capital investment
                                   costs and current buyback rate from the state electricity authority PLN.
                                       The quantity of emission avoidance is restricted mainly due to market
                                   barriers for compost sales; price, availability, eduction, transportation. Of
                                   these, price being the greatest barrier against rapid market develop.
                                       Potential emission reduction (ER) generated from this project would
                                   therefore assist in; (1) Supporting a price subsidy, making the product
                                   more attractive to farmers, (2) Provision of the additional capital
                                   investment required for processing the oversize organic fraction, and (3)
                                   Market development and socialising activities. These mechanisms will
                                   therefore enable increased production volumes, shortening the timeframe
                                   for removing the organics from the landfill and hence significantly
                                   increase future methane emission avoidance.
                                       The means for providing the financial support to achieve sustainable
                                   solid waste management for the city and improve the health and
                                   environmental conditions around the landfill can be achieved.

Specific    global  &     local (In total about ¼ page)
environmental benefits
Which    guidelines  will    be Name and, if possible, the website location
Local benefits                      Improved SWM, reduced environmental impact of landfill, provision
                                of locally produced compost at an affordable price to local agricultural,
                                aquaculture and horticulture sectors.

Global benefits                       Model for sustainable Landfill management for small cities

236e2568-7575-4d7f-9517-c0264e695c9c.doc          dc                                                   10
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
Socio-economic aspects               (In total about ¼ page)
What social and economic                 The overall aim of the project is improvement in MSWM, particularly
effects can be attributed to the final disposal.
project and which would not               A sustainable waste disposal location will significantly reduce the
have occurred in a comparable                environmental and health impacts on the surrounding communities.
situation without that project?           The ability to increase collection service within the city will greatly
Explain the relationship between             improve the living environment of the city’s residents.
the project and the benefiting            Compost sales will provide the municipal government with the
                                             financial ability to self-finance future SWM requirements.
Which      guidelines      will   be Name and, if possible, the website location
What are the possible direct             It is expected that the full operational facility will require a
effects      (e.g.,    employment           workforce of approximately 30 people.
creation,      capital     required,     Local production of organic fertiliser will ensure supply and at an
foreign exchange effects)?                  affordable price due to reduced transportation costs and price
                                            subsidy due to ER’s
What are the possible other               Assist in efforts to socialise the benefits of MSWM to the local
effects? For example:                        community.
 training/education                      Successful implementation will provide a sustainable MSWM
     associated        with      the         model for small cities that could be implemented throughout
     introduction       of      new          Indonesia.
     processes, technologies and          Assistance in developing recycling/processing of non-organic MSW
     products and/or
 the effects of a project on
     other industries
    Environmental          strategy/     A brief description of the relationship of the consistency of the
priorities of the Host Country project with environmental strategy and priorities of the Host
                                     Country (Not more than ¼ page)
                                         The Government of Indonesia is promoting a program of “Go Organics
                                     2010” to assist in increasing the productivity of the agriculture sector and
                                     reducing organic waste. A limiting factor to the success of this program is
                                     the availability, quantity and quality of organic fertilisers to match the
                                     requirement. This project will support this program through the mining of
                                     organics from the landfill and producing an excellent quality compost
                                     product. In addition this project will assist in achieving sustainable solid
                                     waste and environmental management solutions.
C. Finance

  Total project cost estimate
  Development costs                      0.125 US$million
  Installed costs                        Under investigation
  Other costs – Working                  Under investigation
  Total project costs                    To Be Advised
  Sources of finance to be
sought or already identified
  Equity                                 Name of the organizations, status of negotiation and finance (in
                                      xx US$million)

                                         To be determined
   Debt – Long-term                      Name of the organizations, status of negotiation and finance (in
                                      xx US$million)
   Debt - Short term                     Name of the organizations, status of negotiation and finance (in

236e2568-7575-4d7f-9517-c0264e695c9c.doc             dc                                                  11
Project Idea Note
Name of Project: Bekasi Landfill Organic Recovery and Methane Gas Destruction
Date of Submission:
                                   xx US$million)
    Not identified                    xx US$million
    Contribution sought by the        2.0 US$million
CDCF contribution sought in           2.0 US$million and a brief clarification (not more than 5 lines)
upfront payment. (The quantum
of upfront payment will depend         A private sector partner is expected to provide the capital
on the assessed risk of the                investment required for recovery of the Compost Fraction (<
project by the World Bank, and             3mm). Additional capital investment is required for additional
will not exceed 25% of the total           processing facility for the oversized organic fraction of the
ER value purchased by the                  recovered organics,
World Bank for the project. Any        Capital investment required for landfill gas capture and
upfront payment will be                    destruction; flaring and small-scale electricity generation.
discounted by a factor                     The current electricity tariff means that this is not a
considered appropriate by the              commercial activity as the cost per unit for self generation
World Bank for the project.)               from the landfill gas is much greater than that which can be
                                           purchased from the grid.
                                       Working capital required for compost price subsidy in the
                                           first 2 years of operations,
    Sources of carbon finance         Name of carbon financiers other than the CDCF that your are
                                      (if any)
    Indicative     CER      Price     US$5.00
(subject to negotiation and
financial due diligence)
Total Emission Reduction
Purchase Agreement (ERPA)
A period until 2012 (end of the       xxUS$
first budget period)
A period of 10 years                  xx US$
A period of 7 years                   xx US$
A period of 14 years (2 * 7           41.0 US$million
                                      The Financial Analysis is currently being developed and will be
If financial analysis is available
                                   forwarded once finalised.
for the proposed CDM activity,
provide the forecast financial
internal rate of return for the
project with and without the CER
revenues. Provide the financial
rate of return at the expected
CER price above and US$3/
tCO2e. DO NOT assume any
up-front payment from the
CDCF in the financial analysis
that includes CDCF revenue
    Please     provide     a
spreadsheet to support these

236e2568-7575-4d7f-9517-c0264e695c9c.doc        dc                                               12

To top