Quito targets PPP to build solid waste management complex

Quito’s municipal solid waste management company EMGIRS suspended the process to form a strategic partnership to build an environmental solid waste management complex for Ecuador’s capital.

The project should now be carried out through a public-private partnership, EMGIRS said in a statement sent to companies that had expressed interest in the process, inviting them to submit proposals.

EMGIRS sources told BNamericas that the change is intended to provide more legal and financial guarantees for the structuring of the project.

In December, EMGIRS received seven expressions of interest from Lonko Internacional, Cyvawill, Consorcio Siglocorp (formed by Blue Arroq and Promotora Inmobiliaria Majahual), Satarem America, Acciona Servicios Urbanos SL, Setec and Veolia.

According to a technical committee created to analyze the issue, the last three of those companies met the requirements and Acciona was the one that obtained the highest score by presenting a combination of technologies for the project.

According to experts, the PPP model provides greater legal security for both the companies and the country.

According to information provided to BNamericas by EMGIRS's legal department, although the schedule will have to be adapted to the PPP model, it is expected that the plant will be opened in 2027, as originally planned.

The department added that the cost of the new plant, based on the interest received, is preliminarily estimated at US$180mn.

THE PROJECT

The project consists of the design, financing, construction, operation and maintenance of the environmental complex, which is planned to be built in the parishes of Pintag and Pifo in an industrial zone where the current El Inga sanitary landfill is located.

The complex is expected to include a composting plant with treatment capacity of at least 50t/d, as well as one to three recyclable material separation plants, depending on the bids.

The municipality of Quito hopes that the new complex will be able to convert around 60% of the waste collected into compost, for use in parks and electricity generation.

Quito generates around 2,200t/d of waste, of which 63% is organic, according to municipal figures.