The Ministry of Planning and Investment (MPI) has licensed a US$90 million foreign direct investment (FDI) project, the biggest of the year in HCM City, a HCM City Service of Planning and Investment source said on December 29.
This newly licensed project has sent the city’s 2005 FDI approvals leaping to nearly US$950 billion, up about US$200 million against last year.
US-based California Waste Solution Inc. will develop and operate the Da Phuoc Solid Waste Treatment Complex under the license granted by the ministry on Wednesday, just four days before the new year.
With a licensed period of 50 years, the waste treatment complex will cover 128 hectares in Da Phuoc Ward in the outlying district of Binh Chanh, the source said.
The project includes a plant to classify and treat waste for recycling with a daily capacity of 2,500â€“3,000 tonnes, a fertiliser factory that uses organic waste as feedstock, and a dumpsite.
The total project cost is over US$426 million, with US$90 million to be disbursed in the initial period. Da Phuoc is due to receive garbage by late 2006.
Da Phuoc will replace Go Cat garbage dumpsite. Da Phuoc and Tay Bac Cu Chi garbage dumpsites will take all garbage in the city, about 6,000 tonnes a day.
The complex upon completion is expected to treat more 24 million tonnes of waste in the first 22 years, at a fee of US$16.4 per tonne. After closing the dumpsite, California Waste Solution will continue operating the fertiliser factory, which uses organic waste to manufacture compost.
According to the company’s plan, 30% to 50% of the city’s solid waste will be dumped, 20% to 30% will be burnt, and 20 to 30% will be used to produce compost and the remainder will be recycled into paper, glass or plastic.
From 2010 to 2020, the project developer will invest more in waste treatment technology and diversify the forms of waste treatment.
In July, the company started building a bridge crossing the treatment complex, also the first construction work in the first phase of the project. After finishing the first phase, costing some US$107 million, the complex can that 3,040 tonnes of solid waste per day.
In the long-term environment protection strategy, HCM City needs at least two waste treatment facilities of Da Phuoc complex’s size.