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The Preliminary Feasibility Analysis of Constructing Regional Material Recovery Facilities within Kaohsiung City

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The Environmental Protection Bureau of Kaohsiung City, in order to improve the classification efficiency of recyclables and reduce the resource recycling workload of cleaning squad, and to overcome the shortage of existing space and other problems, it carried out the "The Preliminary Feasibility Analysis of Regional Material Recovery Constructing Facilities within Kaohsiung City" ( This project). In accordance with the EPA’s “Environmental Protection Agency’s subsidizes municipal, county (city) environmental protection bureau to handle resource recovery storage sites construction plans", the resource recycling plant should subdivide resource into 56 types of resource recycling materials (or secondary materials) in order to raise their reuse value. This project is based on its relevant specifications, considering the potential scale, and according to the conclusions of discussions with the cleaning squad in each district, This project planned cleaning squad will has only to divide resource recycling into 3 categories and deliver to the material recovery facility for sub-categorization. They are glass, comprehensive (including plastic and paper), and those non-necessary to be reclassified (about 36 types of materials). The glass category is planned to be manually selected and stored in different colors after magnetic separators; the comprehensive category is manually selected by magnetic separators, eddy current, near infrared (NIR) optical separators, and compressed and stored after classification; no further classification is required sorted manually and stored. After evaluating totally of 8 sites, this project selected 2 potential sites, namely the Renmei Resource Recovery and Storage Plant and the land used by the Southern Division of the Marine Patrol Administration. Considering the economic scale of resource plant and land use related laws and regulations, the Renmei Resource Recovery and Storage Plant will be the priority promote site. Its area is about 12,909 square meters, and the potential processing capacity is about 2,800 metric tons per month. The entire facility will have 66 staff. The initial construction cost of Renmei Material Rssource Recovery Facility is about NT$180 million. This program is planned by private participation in BOT. The cost of private investors’ own capital cost rate (ie, the "shareholder expected rate of return") is 10.0% , And the royalties are 0.60 NT$/kg, when the sales price of the secondary materials reaches 2.60 NT$ per kg, it is financially feasible for private investors. In the case of not included royalties, the sales price of secondary materials is 2.00 NT$ per kg, which is financially feasible for private investors. After feasibility analysis of relevant technology, market, land, law, and finance , this project has completed the pre-evaluation of private participation in public construction. It is suggested that the further feasibility study and advance planning should be continued to promote the material recovery plan smoothly.
Keyword
Recycle、Material Recovery Facilities、BOT plan
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