Frequently Asked Questions
How does the project align with waste reduction program from the Tangerang City Municipal Government?
The Project is in line with environmental programs from the Municipal Government. The waste treatment capacity in the Project is designed to handle the waste projection of Tangerang City, which takes conservative estimate that 100% of waste reduction programs are achieved.
The national waste reduction policy specified in Perpres No.97/2017 calls all for a minimum of 30% reduction of waste generation by 2025. Based on the growing number of population and industry in Tangerang City, there is still a large amount of waste that needs to be managed by the Tangerang City Government, even if the waste reduction target is met.
Conventional methods such as landfilling proves to be environmentally damaging and costly. The Project helps creates landfill diversion and reduces the landfilling need immensely, thus creating a sustainable and environmentally sound waste management.
Who is Oligo and what is Oligo’s experience in such projects?
Oligo is formed by a regional infrastructure fund with expertise in project finance with mandate to focus in sustainable investment. Our expertise is complimented technically by partners with technical track records and expertise in the relevant industries, including waste to energy. For this Project, the selected partners have strong implementation track records in Australia, Germany, and South East Asia. Additionally, Oligo engages international experts with even wider experience to assists us in delivering the project in the best possible manner.
Through collaboration with international experts, Oligo-Infra develops local team with knowledge, experiences, and good corporate governance to spearhead the Indonesian waste management sector which currently is still at its infancy.
How does the project impact the environment?
Oligo’s commitment to sustainable investment is reflected in our project design. Each project will be designed and constructed abiding to national and international environmental standards, while applying best practices.
This project is the first-integrated Mechanical Biological Treatment with Thermal Power Plant in Indonesia, encompassing the most holistic waste management treatment technologies in the market. Waste will be segregated in accordance to its characteristics and be treated with technologies that is best suited to that character, and thus minimize pollutant due to ineffective treatment.
Thermal power plant which is an important component to the project will be specifically designed to minimize pollutants that are formed during combustion and be equipped with air pollution control equipments that prevents harmful substances be released to the environment.
For Tangerang community, the best value of the projects is realized from its ability to reduce significantly landfill requirement for City of Tangerang. We expect no more than 15% of the original waste treated will need landfilling, and hence assisting City of Tangerang to save cost for land expansion and its future environmental liabilities. Without the project, Tangerang is expected to add additional 77 hectares worth of landfill in the next 25 years, or 50% the size of Bantargebang Landfill today.
What methods are used to prevent manipulation/fraud in the project?
Our weighbridges will be equipped with anti-fraud methods to protect from fraudulent transactions. A constant monitoring of the weighbridge and weighing results will also help lower the risk of manipulation.
Transparent reporting will also be a priority to ensure accountability of the City of Tangerang and the Project operator, through robust truck and driver identifications.Will the increase in waste continues to burden the City of Tangerang financially?
Yes. It is thus important that residents achieved its waste reduction target sets by the City Government. Without adhering to such targets, this new facility will be inundated with waste and Tangerang will be once again needing additional processing or landfilling capacity.
Does the Project benefits the City financially?
Yes, the project creates significant cost saving to the community due to its ability to avoid landfill by reducing 85% of the incoming waste.
Without the Project, the City will need to continually expanding its landfill, and within 25 years the landfill will expand to more than half the size of Bantargebang landfill in Bekasi. This creates additional financial burden to the City’s budget for landfill acquisition, landfill construction, landfill operation, landfill closure etc., which is approximated to costs Rp 21,7trillion.
This amount is much higher than the tipping fee payment, and power subsidy paid to PLN, which amounts for Rp14 trillion for the same period, as depicted in the graph below.
Will the facility gain more from selling electricity if there is more waste coming to the facility?
No. The thermal power plant functions as a base load power plant and supplies a fix range of electricity to the PLN grid annually with fixed tariff. In terms of electricity production, the annual increment of waste will not increase the burden to the City of Tangerang/PLN.
What is the basis of the tipping fee?
The tipping fee or now officially termed as “Biaya Layanan Pengolahan Sampah” is the fee that is paid to the developer as compensation for its waste management service. The fee covers for costs of building the facility, its operation and maintenance including its workers, rehabilitating existing landfill, and managing its environmental outcome.
In reality, this paid fee is not sufficient to cover this entire costs, so some aspects of the costs are subsidized by the sales of renewable electricity generated by the project. So, PLN is also in important stakeholder for the continuation of this Project, besides the Government of the City of Tangerang.
What measures will be taken to facilitate waste pickers in the Project?
The Project implementation will not hindered the already ongoing activities of the existing waste pickers. In fact, the project design accommodates these independent workers to be a part of its operation, providing that they are willing to adheres to its corporate Operation and Health and Safety Procedure.
For community benefit, the project features a Recycling and Nursery Center and Community Canteen. The Recycling and Nursery Center is created to allow these independent workers to benefit from by-products of waste-processing whereas the Community Canteen are food center created to cater for workers and visitors to the Recycling and Nursery Center.
These allowsHow many manpower does the project needs? What percentage of the manpower are local?
The Project with it’s labor-intensive Material Recycling Facilities will add additional 400+ job openings for professional, skilled operators, and workers. These are generally skilled individuals of various level, and must meet standard academics and trainings.
This helps to snow-ball the economy in this industrial city. The Project is expected to become a new economic center for City of Tangerang and sets a new precedent for waste management in Indonesia.What benefits will the local population gain from the Project?
Healthier Environment for Local Community
The project is expected to gradually improves the sanitation condition of the Neglasari District where this landfill is located. Despite its location within proximity of Indonesia’s busiest airport, the limited waste-water management and open landfill have for a long time contributed to the poor health conditions and low productivity of the residents and farmers due to various water-borne and air-borne diseases. This includes high cases of typhoid and diarrhea.
The Project is expected to control and counter these negative environmental impacts, and gradually cements foundation for a healthier community.
New Economic Center
New economic center will be created due to presence of project workers and will create demand for food and accommodation.When will the project starts to operate?
Following signing of cooperation agreement with the City Government which is expected by end of 2020. The developer is given one year to prepare for construction, including permit applications and detail engineering design. The project should achieve ground breaking by end of 2021.
Following two years of construction (2022/2023), the Project shall operate commercially in 2024.How does the plant work?
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What’s the power generation capacity of the power plant?
The project has a total net power generation capacity of 36 MW. 23 MW will be generated from the thermal power plant and up to 13 MW will be generated by the biogas engine.
Is the technology/system used in the project proven? Has it been implemented in other cities?
The Project combines 3 (three) major proven waste-treatment technologies, the Material Recycling Facility, Anaerobic Digester and Thermal Power Plant. Each of them are very well known technology and has been applied worldwide in the developed world, including South East Asia.
How is the project funded?
Project funding is sourced from both Oligo’s private equity fund and bank syndicates. Once the project enters into commercial operation, City of Tangerang will pay the developer on pay-per-use basis.
How will the project receive income?
The project will receive its income from two major source:
- The main source of income in the project is Tipping Fee or Gate Fee which is the pay-per-use fee payable by the Municipal Government of Tangerang. This fund,
- A second source of income in the project is the sales of electricity generated in the Biogas Engine and Thermal Power Plant to the National Utilities Company (PLN).