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City’s new P3 project is a clean winner

A new contract promises to provide the Municipality of Curitiba and its 2 million people.

Client
International Finance Corporation (IFC)
Expertise
Technical advisory services

Opportunity

The Municipality of Curitiba faces ongoing challenges related to waste generation and management. Curitiba depends on a single landfill for waste disposal that is 18 miles (30 kilometers) from the city center and has a forecast lifespan of less than ten years. The city faces inefficiencies in logistical arrangements for collection and transfer, high levels of contamination of recyclables, and lack of waste treatment facilities for residuals.

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 function as a catalyst for social integration.

Solution

We are supporting the International Finance Corporation and its partners in the project (Brazilian Development Bank, Inter-American Development Bank, and 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 P3 project.

The contract comprises the development of transfer stations to maximize waste transportation efficiencies, a significant emphasis on improving recycling through the integration of the informal sector into the project, and a focus on public engagement through an annual program of communication and education activities.

Outcome

Once in place, the new waste collection, transfer, and disposal P3 contract, scheduled to start in April 2017 and last for 15 years, will ensure that the Municipality of Curitiba and its more than 2 million 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. The contract is also structured so that, from an operational point of view, it can easily interface with a new waste treatment contract that 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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