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Recycling plant

City’s new PPP scheme is a clean winner

The Municipality of Curitiba faces ongoing challenges related to waste generation and management: dependency on a single landfill for the disposal of its waste located 30km from the city centre and with a forecasted lifespan of less than ten years, inefficiencies in the collection and transfer logistical arrangements, high levels of contamination of recyclables, and lack of residual waste treatment facilities.

Client
International Finance Corporation (IFC)
Expertise
Technical advisory services

Opportunity

The Municipality’s objective is to introduce a more sustainable waste collection, transfer and treatment system that will reduce the amount of waste going to landfill, increase materials being recycled and, at the same time, function as a catalyst for social integration.

Solution

We are supporting the IFC, its partners in the project – the Brazilian Development Bank and the Inter-American Development Bank, and the Curitiba Municipality to procure a private sector partner who will design, build, finance and operate a new waste collection, transport and disposal service through a PPP scheme. The contract comprises the development of transfer stations to maximise waste transportation efficiencies, a significant emphasis on improving recycling through the integration of the informal sector into the scheme, and a focus on public engagement through an annual programme of communication and education activities.

Outcome

Once in place, the new waste collection, transfer and disposal PPP contract, scheduled to start in April 2017 and last for 15 years, will ensure that the Municipality of Curitiba and its more than 2M residents receive a waste management service that makes sustainability one of its guiding principles. It also incorporates a performance-based payment mechanism to ensure the contractor delivers value for money. Looking ahead, the contract is also structured so that, from an operational point of view, it can easily interface with a new waste treatment contract which the Municipality is looking to procure at a later stage, ensuring that a fully integrated approach to waste management can be achieved.

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