CHAPTER 2: LITERATURE REVIEW
6. INSTITUTIONAL FRAMEWORK FOR WASTE MANAGEMENT AT MUNICIPALITIES IN SOUTH AFRICA . 145
6.10 Role players in the Project Structure
169 6.7.6 Technical Pre-Feasibility
To assess the viability of any project it is important to firstly understand the specific nature and characteristics of the energy resource which will determin the basis for the project. The organic fraction of waste into the landfill is the by-product for LFG project in the waste management system. The project activity should have with the waste management system that generates the resource. This also means that some pre-knowledge and understanding of the overall waste management system is a prerequisite for developing a successful LFG management facility at a specific site and managing the economic risks associated with the project. The landfill gas resource should be seen in its ability to supply to other parties. It should not be viewed as a utility service such as a natural gas fuel supply. It is also important to understand the associated risk as resource.
170 6.10.1 Project Development Plan
A sound understanding is required for financial goals and objectives, together with at least an appreciation of all of the technical elements of a successful project. It is important to identify a team that includes people with practical experience of the various aspects of WTE implementation.
6.10.2 LFG Resource Expertise
Economic projections and market access arrangements will rely heavily on the ability to assess and quantify the LFG that is available; obtain the LFG fuel that is available; and continuously provide the LFG fuel over the term of any agreement that is negotiated. The entire project team must have confidence in these projections and be willing to base project success on the expertise of this team member.
6.10.3 Financial and Market Access Expertise
The ability to assess and manage the financial aspects of the project and to understand the risk aspects of this type of project are critical in decision making with respect to approval to proceed with a project based on the market value negotiated for the energy products and CERs. The ability to secure long term contracts for the sale of energy is fundamental to the success and risk management of a project. LFG management calculates cost per tonnes equivalent carbon dioxide reductions. The global objective of GHG emissions reduction benefit is most simply achieved through encouraging and supporting the development of LFG management projects that can be managed viably now and in the future. There are many development approaches that could be successful.
6.11 Performance Measurement of Sustainable Waste to Energy Projects
Figure 6-5 highlights the steps that should be followed to ensure a sustainable waste to energy project. It includes proposed indicators and targets that municipalities should include in measuring a project’s performance.
Figure 6-5 was not only measured in terms of proposed indicators and targets but was also measured against institutional, environmental, social , economic and technical levels of priority in respect of project sustainability at the local sphere of government. Each step was measured on a rating of 5, with 5 being a high level priority and 1 a low level of priority. Generally, waste-to-energy projects at municipal level have taken the back seat in terms of IDP priorities, although there legislation and national strategies provides guidance to local municipalities. If grant funding is not received for these projects, it is impossible for municipalities to fund them with internal funding and no municipality will opt to take loans due to the financial and economic risks discussed earlier.
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Figure 6- 14 Matrix assessment of the Project Activity steps on levels of priority and sustainability
StepsProposed IndicatorsTarget 5432154321543215432154321 Prefeasibility Study on Technical DeliverablesWaste CompositionDetailed waste stream analysis Landfill gas Modelling and Sensitivity AnalysisLandfill Gas assessment Determine the Proposed ActivityLong term projects/ PPP Obtain written confirmation of funding proof from the host country Short term projectsSolicit comments from the Municipality on the Proposed activity Establishment of Project Management PanelA team comprising of expertise as municipality's do not have skilled expertise Experienced individuals selected with WTE background Detailed Environmental Impact AssessmentAn approved EIA with all the relevant studies conductedEnvironmental Authorisation from DEA Create a Project Design DocumentMethodology and Detailed deisgn to Project Mangement PanelAn approved final design and methodology Recommendations from Expert Reports The appropriate technology that will be determined for the project activityAppropriate technology and project viability study Appointment of an independent entity to evaluate project activityCriteria to determine the appointment of the independent entity100% potential of the accepted technology Project presented to an Executive Board of WTE projectsAn approved appropriate technology for the Project ActivitySelect the appropriate Technology for the Project Implement and Commission the Project ActivityProject implementation100% of the Activity is being implemented and monitored Reporting on SAWIS on Emission ReductionData reporting and analysis on emission reductionCertification Report on Emission Reduction Certification to the Executive Board to acquire ValidationAn approved criteria for an assessment of Project Validity Executive Board to determine Project ContinuityAn assesment report of Project ValidityFinances and Economic report to determine Project viability WTE Registry confirms issue of CER's to the Executive BoardTo register the project as a WTE and confirm registry of CER'sCertification Report on Emission Reduction Executive Board to review shortcomings of the Project and make recommendationsReview project reportRevise the Project based on the recommendations Revise and Resubmit the Certification ReportRevised Cerification ReportImplement the recommendations and resubmit the ceritfication report Quantify the merits of the Project Activity in terms of Emissions ReductionsMeasure the Emission Reduction20% emission reduction achieved Balance of CER's deposited to the Project Participant Account in terms of a Service Level AgreementMeasure the Emission Reduction in terms of the benchmarks100% of the agreed CER's deposited Level of Priority 5High Priority 4 3 2 1Low priority
Institutional SustainabilityEnvironmental SustainabilitySocial SustainabilityEconomic SustainbilityTechnical Sustainbility
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