Waste

to energy Project executive summary

Content
1.
2.
3.
4.
5.
6.

Project Objective -
Project Background -
Project Indirect economic benefits -
Project Operating structure requirements and responsibilities -
Project analysis of developing the project
Project Appendix - references

1
One Asia Group Pte Ltd
Reg 201220295E


#1 Objective
This business plan sets out to define the waste to energy situation and the project structure our
Group have mapped out for development.
We have sourced funding for one hundred million US$. The funds are for the development of a
50 MW waste to energy plant in Phnom Penh Cambodia.
Our group will take management control of the Phnom Penh city land fill. The solid waste will be
used for fuel and conversion to energy that will be sold into the Citys central power grid. We
estimate being able to generate up to 50 MW of power from the steady waste stream.
The project is sponsored directly by the City and would be a direct obligation of the Sovereign host
Country. The project is fully insurable with commercial insurance from construction through to turn
key with added protection added through political risk coverage.

#2 Project background - Why the need for the better management of waste
As populations grow around the world and economic growth fuels stronger economic consumption,
waste is only going to grow. Waste management companies, contracted to provide waste solutions
on behalf of waste producers, regularly deal with the following challenges:
Handling multiple waste types efficiently and effectively
Adhering to strict Service Level Agreements
Ensuring that carbon and environmental footprint reductions are addressed
Meeting Landfill Avoidance targets
Creating a sustainable, long term solution to waste management
Forecasting and managing future business operating costs
Choosing the right technology to assist in all these challenges
In order to meet these challenges, waste management companies need to recover as much value
from their service contracts by recycling materials and recovering energy and/or products from the
residual material.
Emissions
Estimates suggest up to 49% of wasted heads to the landfill. Non-CO2 emissions from waste are
mainly methane from landfills (over 90%). There are a range of measures that could reduce these
emissions:

Reduce amounts sent to landfill

Increase capture of methane at landfill sites
Divert waste from landfill for thermal treatmet
2
One Asia Group Pte Ltd
Reg 201220295E


#3 Indirect economic benefits

An inferred benefit from this project, is to be found in maximizing the states opportunity cost
from the project, which is specifically, the cheaper source of fuel that is derived locally, which could
ultimately provide a significant saving of foreign currency and extra income to the local
communities. Consequently, the following are other economic benefits when this project is
implemented:

The ultimate amount of diesel used can be reduced by introducing extra power market
contributions via bio energy plants; this hopefully, will lead to the decrease of the ultimate
cost of power generation and transportation.

The reliable and cheap supply of energy can surely facilitate the industrial development in
the state.

Job opportunity for local workers is expected in the whole supply chain of BDF production
stage.

The technology transfer is expected through the construction, and it is possible to contribute
to the technology improvement of the state

Landfill is a provider of greenhouse gas emissions to air which are proven to be a major
contributor to the global climate change zero waste to landfill reduces these effects.
















3
One Asia Group Pte Ltd
Reg 201220295E


#4 Operating Structure requirements and responsibilities

The operating company defined roles and responsibilities:

To Finance bank instrument(s) issued by the JV partner, using all proceeds for subsequent
project development. ( issued from a top 25 Global Bank ).
Using high level relationships and contacts the operating company will secure the PPA and
management rites of the Phnom Penh City waste land fill area.
The Operating Company will be required to hold the land concession for the project under a
30 year lease arrangement. (land fill and development site adjacent to the land fill ).
To negotiate terms and effective pricing for appropriate hardware for the project and to
arrange for product delivery to site.
The local operating company will be responsible for sourcing and managing risk mitigation
products that will manage arising project commercial and political risks.
Continued day to day management of day to day operations, to include general staffing
management.

The investor defined role and responsibility:

To provide access to financial instrument(s) that will be specifically used for the purpose of
effecting finance for the said project. (issued from a top 25 Global Bank ).
To use the group engineering strengths to conduct preliminary tests on the landfill area and
adjacent land for subsequent civil works to commence.
To manage all installation and subsequent maintenance of hardware for the project

Repayment:

The investor will be a debt investor and will be paid out on all subsequent cash flows after costs /
repayments are met in priority. Once the original investment is returned, all subsequent profits will
be jointly shared 50 / 50 % between the members of the JV Company.





















4
One Asia Group Pte Ltd
Reg 201220295E


#5 Financial and Economic Analysis of the Project

The following financial analysis is carried out based on the cost and revenue incurred.

The project cost estimation is carried out on the following premises; the following costs are not
incurred:
Environmental Impact Assessment (EIA)
License application fee for project implementation
Compensation for relocation on any related project sites
Import tax of related consumable materials and equipment
Utility service fee during plant construction (electricity and water)
Fuel and electricity for trial operating period

Forecast Data
* Investor Data:
- Capital Investment: Per 50MW generator plant USD $ 100,000,000.00
- Bio Power Capacity: 50 MW power generation
- Waste Consumption: 1,500 MT per day of solid waste (estimate to reach 2,000MT within 5years)
- Cost of fuel
* Local Data:
- PPA Period: 30 years
- Daily Period: 22 hrs
- Electricity Price: $0.12/kwh (Guaranteed from the PPA )











5
One Asia Group Pte Ltd
Reg 201220295E


We have estimated the construction costs of the plant:

Construction
Costs
Purchase of Land ( license one time)

$400,000.00
$400,000.00
$360,000.00
$900,000.00
$2,060,000.00

Engineering Costs installation etc.

Engineering Service civil works
Commercial / political Insurance / shipping
Total

REVENUE:
Calculation 1: based on local data consumption.

Assumption 1
Local consumption
$ per Kwh
0.12
Kw total
50,000
days
360
hours
22
Total
$47,520,000.00
Note - If 18hrs/day consumption then revenue: $38,880,000.00
EXPENSES:
Calculation1:
Expenses

Totals

Manpower $ 300 per * 100 pax

$360,000.00

Maintenance

$600,000.00

P /a cost
of construction costs

On-going insurance costs

$220,000.00

Total

$1,180,000.00

MARGIN:
Calculation1.
Margin

20hr day

Revenue

$47,520,000.00

Expenses

$1,180,000.00

Total

$46,340,000.00

6
One Asia Group Pte Ltd
Reg 201220295E


Calculation2.
Margin

18 hr day

Revenue

$38,880,000.00

Expenses

$1,180,000.00
$ 37,620,000.00
$37,700,000.00

Total

NET MARGIN:
Net Margin

22 hr day

Revenue

$47,520,000.00

Sunk costs (100M / 3y )

$33,333,333.00

Total

$14,186,666.67

Calculation 2 .
Net Margin
Revenue
Sunk costs ( 100M / 4y )
Total

18 hr day
$38,800,000.00
$25,000,000.00
$13,800,000.00

Cash Flows:
Under scenario 1 - 14.19$M for the first 3 years until repayment of principal investment is made.
Under Scenario 2 13.8M $ per year for 4 years until repayment of principal investment is made.
Forecasts have been made using a 25 year Fixed PPA rate of 12 cents. Subsequent cash flows after
repayments are made and prevailing costs met indicate IRR of above 21% with positive NPV levels
at $30,631,998.23 ( discounted at 10% over 5 years )

References

1. All capital expenditure data has been sourced from similar such Bio energy projects such as
the Pepsi cola sponsored Bio energy development in the Philippines.
2. Forecasts have been based upon known power purchase levels within Cambodia.
3. Background data has been gathered from ADB alternative power development research
papers.



7
One Asia Group Pte Ltd
Reg 201220295E


#6 Appendix
#1 MANILA, Philippines - The Asian Development Bank (ADB) and Procter & Gamble Co. (P&G) are
studying building 'waste-to-energy' plants in the Philippines.

In a statement today, Manila-based multilateral development bank said the plants aim to generate
two megawatts of power through solid waste collected from homes and businesses.

ADB has approved a $385,000 technical assistance plan, equivalent to 60% of the total cost. This will
help determine the viability and sustainability of waste-to-energy projects.

If the project is deemed viable and sustainable, the waste-to-energy plant will be piloted in the
Philippines by 2016.

"This is the kind of innovative project that brings the public and private sectors together to tackle a
problem seen throughout the developing world. Piloting an integrated solid waste management
system means it could be replicated in other parts of the world," ADB Investment Specialist Jose
Manuel Limjap said.

Tons of waste

The ADB said around 6,700 tons of solid waste is generated everyday in Metro Manila but only 720
tons are recycled or composted.

The unrecycled or composted waste is hauled to dump sites, openly burned, or dumped illegally on
private land, in rivers, creeks, or Manila Bay.

ADB said this has led to serious environmental problems, such as air pollution and soil and
groundwater contamination. Inefficient solid waste management practices have also been touted as
a major contributor to recent flooding in various areas of Metro Manila.

"The project aims to eliminate the need for landfill, as less than 1% of the waste is expected to
remain after processing, and this will mostly be material that may be recycled for use in products like
asphalt," the ADB said. Source Rappler.com







8
One Asia Group Pte Ltd
Reg 201220295E

#2 Siemens to deliver steam turbine generator for a waste-to-energy plant in Great Britain

Erlangen, Germany, 2012-Feb-22

Siemens Energy has received an order for a steam turbine generator to be used in a waste-to-energy
plant equipped with combined power and heat generation in Plymouth, England. The customer is
Imtech Deutschland GmbH & Co. KG, a leading provider of technical building services equipment,
based in Planegg near Munich. As the general contractor for the Water-Steam-Cycle, Imtech will
construct the plant for the Mannheim-based EfW specialist MVV Umwelt. Once commissioned in
2014, the power plant with an electrical capacity of up to 25 megawatts (MW) is designed to
cover the heat demand of Plymouth's Naval Base, cost-effectively and with low CO2 emissions.

The compact, single-casing SST-400: a cost-effective solution for individual requirements of industrial
customers.The waste-to-energy plant in Plymouth is expected to use 245,000 metric tonnes of
household, business, and industrial waste to generate electricity and heat by means of combined
heat and power generation to ensure a reliable heat supply for Plymouth's Naval Base. Construction
of the power plant, with an installed electrical capacity of 25 MW and a maximum process steam
extraction of up to 30 tonnes per hour, is scheduled to begin in the spring of 2012, with
commissioning scheduled for 2014. Siemens is responsible for the delivery, installation, and
commissioning of the SST-400 steam turbine, including gearboxes and oil system as well as the
electrical generator and auxiliary systems. The steam generator installed in the plant produces
steam that drives the turbine to ultimately produce electricity. The plant is being built adjacent to
the Naval Base in Plymouth in south west England. It will provide the base with a reliable and
economical heat supply. Additionally, most of the electrical energy produced will be used at the
Naval Base. The British Defense Ministry's Devonport Naval Base, located on the west side of the
city, is the biggest naval port in Western Europe and also Plymouth's biggest employer. "The SST-400
is one of our most versatile industrial steam turbines," said Markus Tacke, CEO of the Industrial
Power Business Unit within Siemens Energy. "With an installed capacity of up to 65 MW, the flexible
steam turbine has proven itself to be a cost-effective and environmentally friendly solution in a wide
variety of applications." Source http://www.siemens.com/energy

9
One Asia Group Pte Ltd
Reg 201220295E