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Reports of CDM/JI Feasibility Studies: FY2007

Title of Feasibility Study (FS)Municipal Solid Waste 3R Promotion & Stabilization in Viet Nam
FYFY 2007
Main Implementing EntityKAJIMA Corporation
FS Partner(s)-
Location of Project ActivityViet Nam (Da Nang City, Hai Phong City, and Bac Ninh City)
Summary of FS ReportPDF (158KB)
Description of Project ActivityThis project aims to introduce the Mechanical sorting and Biological Treatment (MBT) for the waste which is currently disposed at landfill site in the three target cities, namely, Da Nang city, Hai Phong city, and Bac Ninh city. Mechanical sorting is to collect recyclables efficiently and to promote 3R of waste, while “biological treatment process” is to stabilize the waste through high-speed aerobic digestion of organic matters. The aerobic digestion prevents waste from being degraded under the anaerobic condition which generates methane gas, and thus contribute to the GHG emission reduction.
Targeted GHGCH4, CO2
Category of Project ActivityWaste Management
CDM/JICDM
Duration of Project Activity/ Crediting Period2009-2015 (7 years)/2009-2015 (7 years)
Baseline Methodology/ AdditionalityBaseline Methodology
This project applies the approved methodology AM0025 ”Avoided emissions from organic waste through alternative waste treatment processes (version 10)”.
The following scenario was identified as baseline scenario for this project:
- Disposal of waste at a landfill without the capture of landfill gas (Continuation of current situation)
Demonstration of Additionality
Additionality of the project was demonstrated and assessed in accordance with the “Tool for the demonstration and assessment of additionality”. The investment analysis using the bench mark analysis method revealed that the project IRR is negative, and thus the project is economically unattractive, without the income from CER sales. Common practice analysis also discovered that the proposed project is unlikely implemented without CDM scheme.
Hence, the proposed project activity is additional.
Estimation of GHG Emission ReductionsBased on the assumption obtained through the survey, the GHG emission reduction throughout the crediting period (7 years) was estimated as follows;
Da Nang City: 460,720 tCO2e,
Hai Phong City: 252,360 tCO2e, and
Bac Ninh City: 96,440 tCO2e
Monitoring MethodologyMonitoring methodology, AM0025 ”Avoided emissions from organic waste through alternative waste treatment processes will be applied in the project. Major data and parameters to be monitored are as follows;
  • The amount of electricity consumed from the grid in the project activity
  • The fusil fuel consumption by vehicles in the project activity
  • Quantity of compost produced
  • Total amount and composition of organic waste prevented from disposal
  • The number of samples taken with an oxygen deficiency in composting process, etc.
Environmental Impact AnalysisAccording to the Vietnamese laws on Environmental Impact Analysis (EIA) system, the proposed project falls under the “reprocessing and treatment facility for municipal solid waste” which is covered by the EIA system, hence, the project is obligated to conduct EIA and prepare EIA Report in accordance with the law.
Negative impacts on environment that may occur during construction and operation include as follows;
<Construction>
  • Air pollution, through the use of fossil fuel on vehicles required for transportation of construction materials, and machinery required for construction.
  • Generation of noise to some extent, due to material transportation, number of worker increase, installing of facilities, etc.
  • Generation of the waste due to the construction work
<Operation>
  • Generation of noise due to facility operation
  • Generation of unpleasant smells, due to the storage and treatment of organic wastes.
  • Generation of wastes (or residue) through the sorting and treatment process
Issues and Tasks for Project RealisationAs a result of financial analysis, it was concluded that the only the project in Da Nang City can be financially viable and economically attractive. The project in Hai Phong and in Bac Ninh, on the other hand, has very low potential to be feasible under the current condition.
Therefore, the next step will be the further preparation to implement the project in Da Nang City, including the establishment of SPC. It is also needed to proceed the CDM procedures, including validation, getting approval from the government, and registration by the CDM Executive Board of UN.

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