The loan will support the construction of nine plants with a total capacity to convert around 6,300 tons of municipal solid waste daily into electricity. These plants are expected to generate around 610GWh of electricity annually, using clean technologies, by the end of 2018.
Dynagreen will develop and operate the proposed facilities, under public-private partnership arrangements.
Of the $200m, ADB is providing $100m as a direct loan from its ordinary capital resources while the remaining amount is provided as a local currency complementary loan of about $100m.
In addition, the bank has allocated technical assistance grant of about $500,000 to enhance Dynagreen’s corporate governance system.
ADB Private Sector Operations Department principal investment specialist Hisaka Kimura said that smaller municipal governments possess large amounts of untreated waste leading to harmful gas emissions and soil and groundwater contamination, as they face problems in attracting private sector interest unlike large cities.
