Low collection and gate fees for waste and a lack of standardized Power Purchasing Agreements (PPAs) and Feed-in-Tariffs (FIT) currently prevent investment in traditional Waste to Energy (WtE) infrastructure to manage mixed wastes in Cambodia. Traditional WtE infrastructure, such as a standalone incinerator, requires relatively high investments and standardized offtake arrangements.  This project proposes a Waste to Fuel (WtF) intervention that overcomes these bankability hurdles, by facilitating investment in a Refuse Derived Fuel (RDF) plant in Phnom Penh and subsequent use of the RDF at the cement kilns. This approach requires relatively low CAPEX and no PPA as fuel is sold directly to the cement kilns. 

The project will support government counterparts in assessing technical feasibility of the RDF plant, and in designing a suitable procurement and contractual set-up for a PPP through an auction mechanism for a Build-Own-Operate-Transfer (BOOT) contract. 

As the biggest city in Cambodia, Phnom Penh is the ideal candidate for such a project as it generates enough volume of municipal and industrial solid waste, within a relatively small area. There is no large-scale recycling facility in Phnom Penh and no source segregation of waste, apart from informal collection of some recyclables. Therefore, WtE represents a suitable option to deal with such mixed waste streams in large scale. The model is potentially replicable in larger cities in GGGI member countries. 

The project objective is to facilitate investment in a Refuse Derived Fuel (RDF) plant in Phnom Penh and subsequently replace coal with RDF at the cement manufacturing in Cambodia and this project is aligned with IO2. Increased green growth investment flows which enable partner governments to implement green growth policies. 

Impact: Reduction in solid waste dumping and a consequential reduction in coal use for energy generation, resulting in environment, public health and economic benefits. 

Outcome: N/A 

Project Outputs completed in 2019: 

i. Green Growth Policies: N/A

ii. Green Investments: 

• GGGI has successfully completed a pre-feasibility study on setting up a centralized RDF facility in Phnom Penh to demonstrate the viability of such plant. Legal assessment of procurement options and regulatory requirements was completed. GGGI received written support from Phnom Penh Governor and the Cambodia Cement Manufacturing Association for the project.  

iii. Capacity Building and Knowledge Products 

• One workshop and multiple detailed briefings to government officials.  

Project Manager: Tero Tapio Raassina 

Jerome Fakhry, Karolien Casaer, Putheary Kuy, Sut Samedy