Vietnam’s first waste-to-energy PPP project receives ADB support

The $100 million ADB loan will be used to construct WTE plants in the Mekong Delta

A series of municipal waste-to-energy (WTE) plants in primary and secondary cities in the Mekong Delta will be built from the ADB loan. This initiative will be the first municipal WTE public-private partnership (PPP) project in the country.

“The agreement signed today will be a new model to improve solid waste management in cities and mitigate climate change by reducing methane and increasing energy generation from renewable sources,” said Christopher Thieme, deputy director general of the Private Sector Operations Department at ADB.

Vietnam generates more than 27.8 million tonnes of waste annually. Most of the waste collected is disposed in landfills, leading to poor hygienic conditions and pollution. This poses a significant health threat to nearby communities, mostly the urban poor.

One of the most effective ways to treat and manage this increasing quantity of municipal solid waste is through WTE, which can reduce waste volume by 90 per cent and eliminate greenhouse gas emissions, while also producing energy from the heat during incineration.

ADB will support the construction and operation of a series of WTE plants with advanced clean technologies in multiple municipalities in Vietnam. Each WTE plant will treat municipal solid waste and supply electricity to the local electricity grid. CEIL will develop and invest in WTE subprojects in Vietnam to facilitate the harmless treatment, reduction, and reuse of household waste in the cities and produce clean electricity.

CEIL is one of the world’s leading integrated environmental protection companies with projects spanning 18 cities and provinces in the People’s Republic of China. As of the end of 2017, CEIL had 43 WTE projects in operation with a combined processing capacity of 39,100 tonnes per day and generation capacity of about 4,300GWh per year.

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