ADB Helping Da Nang City Develop Waste Treatment Solutions Using PPPs

DA NANG, VIET NAM � The Asian Development Bank (ADB) and the Da Nang City People's Committee today signed a transaction advisory services agreement to develop a new land fill and waste treatment facility.

ADB has been a key development partner to Da Nang City, said Norio Saito, ADB Deputy Country Director in Viet Nam. This transaction advisory support to Da Nang for the solid waste treatment facility will complement the work we are doing in the urban sector in Viet Nam, and create a template for delivering waste treatment solutions via Public-Private Partnerships (PPP) for other cities across the country.

Da Nang, a rapidly growing industrial and tourism hub in central Viet Nam with a population of over 1 million, collects about 700-750 tons of solid waste per day. Waste is disposed of in the city's existing landfill, but the remaining capacity will be fully utilized by 2020. Development of a new site and waste treatment facility is an urgent task for the city to make the city's solid waste management more sustainable and environmentally friendly.

The project will use a PPP scheme in which the private sector will design, build, finance, operate, and maintain the waste disposal and treatment facilities. These facilities will meet the city's requirements beyond 2020 by applying appropriate technologies for treating waste. The concession period and other parameters including the technologies to be used will be determined based on the feasibility study. The project will complement the city's initiatives to improve waste collection.

ADB's assistance to Viet Nam to identify and develop PPPs, including in the waste sector, is a key priority in ADB's 2016-2020 Country Partnership Strategy for Viet Nam that supports Viet Nam's environmentally sustainable growth. The project will be ADB's second PPP transaction advisory engagement in Viet Nam and its first in the solid waste sector. As a transaction advisor for the project, ADB will work with the city to explore the most appropriate technology for the project, attract private sector investors to the project, create document and contact templates that may be used for future PPPs in the sector and region, and build local expertise in PPP management and execution.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members�48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

Source: Asian Development Bank

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