Waste to energy facility in Germany; Waste to energy facility in Germany;

Asian Development Bank, Da Nang

Funding a sustainable waste solution

The central Vietnamese city of Da Nang has a growing population with increasing levels of wealth. These successes have led to increased per capita waste generation and government studies show that Da Nang could run out of landfill space for its waste as early as 2020.

Arup has been working with the Asian Development Bank (ADB) to develop a feasible waste-to-energy project, one that can draw on private sector capability and financing under a Public Private Partnership (PPP) structure. A key challenge has been the limited precedent of both successful PPP transactions, and waste-to-energy projects, in the local market. As ever, our service combined forward-looking business insights with deep technical knowledge of the infrastructure being created.

Project Summary

2020 estimated year that Da Nang could run out of landfill space

6, 9, 11Sustainable Development Goals supported by our work

1,000tonnesproposed starting capacity of the facility

A waste opportunity

Our feasibility study combined technical and commercial advice, demonstrating a detailed understanding of Da Nang’s current and future waste generation and needs, and recommended incineration as a suitable technology. Our recommendations sought to ensure minimal environmental and social impact to the project site and nearby communities.

We gauged local and international bidder interest to help put the scheme on an attractive commercial footing from the outset. Our work also analysed the project’s financial viability and provided a Value for Money (VfM) assessment to ensure a PPP solution that would generate financial and economic benefits to the city. Finally, we offered advice on a suitable PPP deal structure.

Commercial, sustainable energy

The new waste-to-energy facility will provide Da Nang with a sustainable, long-term and scalable solution, one that aligns with US Sustainable Development Goals 6, 9 and 11.

Our work applied international best practice and involved significant market engagement, in turn shaping a transaction structure that maximises investor appeal. Our work also highlighted the need for a refresh of certain local regulations to reflect current market practice and facilitate the use of PPP. We are now exploring ways to support ADB and the Vietnam Government work through these issues as a next step.