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Key terms used in the Document

CDGL City District Government Lahore

CDM Clean Development Mechanism

USWM Urban solid waste management

SWM Solid waste management

MSWM Municipal solid waste management

LCL Lahore compost Pvt limited

TPD Tons per day

UC Union Council

ROI Return on Investment

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Urban Solid Waste Management in Lahore

Pakistan is one of the most urbanized countries in South Asia region with the 35% of its

population living in urban area as compared to the 29% regional average. In the same way,

the annual urban growth rate is 3.5% as compared to the average of 2.4%. With a growing

population like other cities, Lahore city faces the urban problem of inadequate SWMS. The

basic problems with the SWMS can be broadly categorized as

a) Insufficient official garbage collection points

b) Insufficient waste collection equipment

c) Non-availability of a final disposal site

d) Lack of funds, for equipment, operations, maintenance and personnel

e) Community reluctance to pay for the solid waste collection fees

f) Hygiene issues

The Lahore city Government (LCG) (“Implementation Agency”), comprising an area of

approximately 1.772 square kilometers and a population of approximately 6.5 million (1998

census) divided into 8 townships (Union Councils) intends to rectify the above situation

through the private sector participation in an integrated SWMS implemented under the PPP

modality.

Objectives of the Project

A typical solid waste management system in a country displays an array of problems, including low

collection coverage and irregular collection services, crude open dumping and burning without air

and water pollution control, the breeding of flies and vermin, and the handling and control of

informal waste picking or scavenging activities. These public health, environmental, and

management problems are caused by various factors which constrain the development of effective

solid waste management systems. It is envisaged that the proposed SWMS will address the above

issues and comprise of the following salient features:

1) Labor intensive system, so as to assist in job creation

2) Low cost system, as residents are not prepared to pay for the alternative

3) Low technology equipment, as high technology equipment would be difficult to maintain

4) System that makes collection points readily available to a majority of residents.

The Project also includes improvements to the existing Solid Waste Management system by

incorporating better mechanisms of waste management. It is envisaged that the proposed system

would be built under the Public-Private Partnership modality. The development of infrastructure for

this would also provide a commercial opportunity in the form of advertising, and thus pay for

themselves for their construction.

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SWMS Planning

Inadequate collection and disposal of solid waste continues to pose a serious health risk to

Pakistan’s population of approximately 160 million people and is an obvious cause of

environmental degradation in most cities as well as well as smaller towns. Mixed municipal

solid waste is dumped either indiscriminately in the neighborhoods or, if collected by a

waste collection service, disposed of in uncontrolled dumpsites.

Sources of Waste

There are various sources of pressure on solid waste management techniques in Pakistan.

Some of these are associated with sources of waste generation and treatment at

generational stages while other pressures relate to lack of available technology in managing

the huge volumes of solid waste. There are two main sources of solid waste discharge in

Pakistan.

Municipal waste - Consisting of organic and inorganic waste (plastics, paper, glass, metal,

polythene bags etc).

Industrial or hospital waste - Industrial hazardous waste generated in most Pakistani cities

is not separated at the source of generation and requires special methods for collection,

treatment and disposal. Hazardous medical waste is a problem in every city of Pakistan.

Approximately 250,000 tons of medical waste is annually produced from all sorts of health

care facilities. Mixing of most of the hospital waste with municipal solid waste worsens the

problem. Some hospitals and municipalities burn their wastes, which results in the

production of large amount of highly toxic gases.

The present condition of collection and disposal services

Based on a survey conducted in 2004, Pakistan generated 54,888 tons of solid waste per

day—25,780 tons from urban areas and 29,108 tons from rural areas. This amounts to a

total of 20 million tons per year. It is projected that the population of Pakistan in 2014 will

be 197.77 million and based on the current annual population growth rate of 2.61 percent it

is estimated that the country’s solid waste will go up to 71,000 tons per day, which amounts

to 25 million tons per year.

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In cities such as Lahore and Karachi, waste disposal typically accounts for 20-25% of

municipal expenditures. Solid waste collection by government owned and operated services

in Pakistan’s cities currently averages only 50% of waste quantities generated. About 12,500

tons per day waste remains uncollected. Demand for services will grow by about 4% per

year as urban populations grow. Demand will also grow as per capita waste generation rates

grow at the anticipated rate of one to three percent per year based on increased domestic

production and income.

Disposal of Waste

Public compliance with municipal laws is poor. Littering and clandestine dumping is evident.

Solid waste collection services are also hampered by the improper discharge of household

wastes. All residential, industrial, institutional, and commercial solid waste streams are

mixed. Only construction and demolition debris is kept separate during the collection and

transportation stages, although they are co-disposed with the other solid wastes. Disposal is

by open dumping, primarily on flood plains and into ponds, at sites that typically have less

than one year of capacity. Few official disposal sites are used on a long-term basis.

Alternatives available for Disposal

Most of the cities have no system of recording all the loads of refuse as they are delivered to

the disposal site, so clandestine dumping on open lots or paid landfill of privately owned

land is substantial.

Alternative 1: Organic waste composting

Methane production would be avoided by breaking down organic matter through aerobic

processes. Composting activity includes processes of municipal waste classification,

composting and automation monitoring, which require high technology. It demands high

initial capital investment and operational & maintenance costs. The sales of generated

compost faces marketing risks and the ROI (return on investment) cannot reach the

minimum hurdle rate expectations. Considering the financial barrier sand market risks

composting without CDM support is not feasible.

Alternative 2: Waste incineration

Waste incineration is suitable for low humidity and high caloric value wastes. A study was

carried out on the municipal solid waste of Lahore metropolitan to ascertain whether the

waste of Lahore municipality is suitable for incineration or not. The study reviled no

installation of incinerator at any landfill site in Lahore due to higher moisture content

varying from 50% to 70%, high ash content ranging between 15% to 25% and volatile

combustible content of only 15% to 20% in the Lahore MSW. This NESPAK study was

conducted under the orders of the Honorable Lahore high Court where the residents

challenged the project. Moreover installation of incinerators at landfill site would be an

expensive option, technically more challenging to operate and environmentally undesirable.

Thus, incineration at present is not a viable option for waste disposal in Lahore.

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Alternative 3: Disposal of the waste on a landfill with electricity generation

Sanitary landfill or the controlled tipping involves the disposal of the waste in the prepared

trenches or cells. It is a biological process in which number of microorganism generates

different products. Vents are kept for the escape of gasses like Carbon Dioxide and

Methane. An extensive investment is required for landfill gas collection system for possible

generation of electricity. High investment, technical challenges and lack of capacity in the

local market renders this option unfeasible at present.

Alternative 4: Composting (Break down) of Organic Material

It is most feasible process for the waste disposal as in this method organic matter is broken

down through uncontrolled anaerobic processes, releasing all produced methane into the

atmosphere. There are no technical and investment barriers to this option. It is a feasible

option but with severe environmental consequences. Stated alternatives 2 and 3 are not

acceptable owing to the technological and financial reasons.

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Composting of Organic Content of Municipal Solid Waste in Lahore

The Solid Waste Management Department (SWMD) of City District Government Lahore

(CDGL) is the sole authority responsible for the management of Solid Waste generated in

the city. The responsibility of the SWMD consists of the whole process of collection of waste

to its satisfactory disposal. However, due to high population growth and the lack of

resources, the waste management has become a challenge for CDGL. Accordingly, SWMD

prioritized the need to address this issue including the possibility of private sector

participation through which waste can be managed and used in an economically beneficial

manner. This arrangement would address the need to dispose of solid waste in economically

beneficial ways without putting extra burden on the Lahore SWMD.

Lahore Compost (Pvt) Limited (LCL)

LCL, a group company of Saif Group, is a private limited company under the laws of Pakistan

especially set up to operate composting facilities in Pakistan. The company started

developing the composting project back in 2001. The company has set up its first

composting plant at Mahmood Booti under an agreement with the City District Government

Lahore (CDGL). The project has been setup on Build-Operate-Transfer basis, whereby the

project will be transferred to CDGL after a period of 25 years. This is the first public-private

project in Pakistan on such a large scale in the area of Municipal Solid Waste (MSW)

recycling.

SHL defines and reviews business and investment activities of the Saif Group and provides

consultancy and other related services to associated companies in addition to provide local

support and other representative services to leading transnational corporations. SHL is also

the primary implementation authority of the Saif Group for programs in Human Resource

Development and Administrative Support. SHL is tasked with:

Building networks with project partners and achieving shared objectives through the

utilization of synergies.

Managing network and alliance development

Nurturing an enterprise culture throughout the organization

Establishing the benchmark for recruitment and human resource development

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MSW project allocation

Lahore Compost (Pvt) Limited (LCL) has received the concession from the City District

Government, Lahore (CDGL) to process up to a 1,000 ton per day (TPD) of municipal solid

waste (MSW). This will be achieved in incremental phases over time until 1,000 tons per day

is achieved. Available statistics suggest that around 1,900 tons of solid waste per days is

generated in Aziz Bhatti Town, Ravi Town and Shalimar Town every working day; out of

which around 1,200 tones is collected and dumped at the Mahmood Booti Open Dumping

Site. All of this solid waste is available for processing and composting. Various studies

conducted in the past on the quality and composition of the solid waste suggests that the

waste delivered to the project company includes over 55% organicmaterials.

Composting, in scientifically designed plants, would improve the local environment by

reducing health hazards created by the present practice of dumping of waste in open dump

sites and also sequester the emission of methane generated in the process of anaerobic

decomposition of biodegradable matter. The Project will also result in the production of

compost, which will be used as a soil conditioner/ fertilizer for improving the quality of soil

in and around Lahore.

There are various forms of composting, e.g., aerobic windrow type, anaerobic trench type,

in-vessel high rate composting, vermi-composting etc. LCL has been operating and plans to

extend capacity of an aerobic windrow type composting technology. The capital investment

in this composting plant is primarily for the

Civil structures and equipment for material handling

Turning and screening the composting material at different stages

The composting technology is relatively simple but in absolute terms the capital investment

is still high. Additionally, the operation and maintenance cost including the cost of debt

servicing is fairly high compared to the low market price of compost. Therefore, additional

support is necessary to make the urban waste based compost plant viable and sustainable.

It also requires specific technical knowledge to manage the biological composting process,

which was introduced for the first time in Pakistan as a result of this project.

Due to a number of reasons, it is very difficult to make waste management projects

commercially viable in Pakistan. As in many other countries, available resources from the

Government of Pakistan and revenue accrual in terms of municipal taxation are not

adequate. In Pakistan, there is little experience with the use of compost on a large scale and

it is challenging to make commercially viable a composting project such as the likes of

Lahore Compost. The concept of commercial soil conditioner is still not widely known

amongst the farmers, the largest client/ user group. This coupled with the low levels of

certain plant nutrients on a per tonnage basis in comparison to the chemical fertilizers leads

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to a relatively low market price of compost. CDM revenues could make a very positive

impact in making such projects sustainable and would also open up possibilities for private

sector participation.

Benefits of Composting

The LCL project is first of its kind under Public Private Partnership and is contributing

towards sustainable development of the municipality. The following are the environmental,

economic and social benefits of implementing the project in the area:

1. Environmental Benefit

The project would prevent uncontrolled GHG generation and emission from waste that

would have been disposed off at the open dumping site. Additionally it would reduce the

amount of waste going into the open dumping site thus increasing the lifespan of the waste

dumping site.

2. Economical Benefits

Production of soil improver (compost) to battle soil degradation, boost the farm crop

production, thus promoting farmers’ income and contributing to economic sustainable

development of the region.

3. Social Benefits

This project will help to Creation of around 80 jobs for locals and staff training to improve

skills of the local residents. The project would also promote sustainable development of

Lahore Municipality by improving the environment quality and demonstrate the

commercialized practice of composting that could assist Pakistan’s central and southern

regions and other countries in meeting the objectives regarding re-use of waste.

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Technical Description of the Project

Lahore compost Pvt limited is responsible for the overall implementation of the composting

project in Lahore. The project will be implemented in incremental phases until 1,000 tons

per day is achieved.

Location Mahmood Booti, Bund Road, Lahore

Region Lahore city district, Punjab

City Lahore city

The composting plant is located within the boundaries of Lahore city. The site is adjacent to

Mahmood Booti MSW dumping site. The latitudes and longitudes of the project site are

Latitude: 31.610o N, Longitude: 74.382o E. The map below describes the exact location of

the site:

Project Location

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Technology to be employed

Aerobic windrow type composting is considered to be the most suitable technology. The

project involves the production of compost from the organic solid waste using European

Technology from Belgium. This is a sophisticated method of composting which complies

with the EU regulations and is being introduced for the first time in Pakistan.

In the aerobic windrow type composting, the incoming garbage is weighed, inspected and

then subjected to preliminary sorting of large non-compostable items followed by crushing

to harmonize the input for composting. Next is stacking in windrows (100-120 m long piles

with a base width of about 4m and height of 2m). These windrows are turned mechanically

at consistent intervals. At the end of about 6 weeks of windrowing, the material is fairly

stabilized and is ready for screening through a train of rotary sieves having increasingly

smaller openings. Additional equipment is also applied for removing small stone and grit.

Smaller pieces of plastics, glass, rags etc. are removed during this process. At each stage,

some rejects are screened out, which are either picked up by recyclers or more commonly,

sent to an open dumping site.

Compost is dark brown, free-flowing, rich in humus and has a faint musty odor. The humus

content makes it a healthy soil conditioner. Additionally, compost contains a small

percentage of plant nutrients – macro (nitrogen, phosphorus and potash) as well as micro.

Finished compost is classified as a 100% organic fertilizer containing primary nutrients as

well as trace minerals, humus and humic acids, in a slow release form.

Process flow diagram below further clarifies the processes involved and technology

employed.

Source- Lahore composting Pvt ltd, 2004

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The Figure below shows the waste dumping site along with the existing composting facility

and proposed expansion of windrow pad.

Estimation Reduction in CO2

Over the credit period of 7 years, this plant will help to reduce the carbon emission about

760,801 tons.

Source- clean development mechanism, 28 July 2006

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Compliance with the applicable laws and regulations

The most relevant parts of the legal framework for disposal of waste in Pakistan include:

The Pakistan Environmental Protection Ordinance, 1983

National Conservation Strategy (NCS), 1992;

National Environmental Quality Standards (NEQS), 1993; and

Pakistan Environmental Protection Act, 1997 (PEPA, 1997)

Punjab Solid Waste Management Guidelines, 2007

The Ministry of Environment deals with environment and wildlife issues at the federal level.

Two organizations, the Pakistan Environmental Protection Council (PEPC) and the Pak- EPA,

are primarily responsible for administering the provisions of the PEPA 1997. The provincial

environmental protection agencies (EPAs) are the provincial arms of the federal EPA, which

is authorized to delegate powers to its provincial counterparts.

There is no article enforcing landfill gas extraction, organic waste composting or what-so-ever in Environmental Protection Law of the Islamic Republic of Pakistan. While the governing laws do not regulate waste disposal practices, there is no prohibition against composting either. The SOPs of LCL are in full compliance with the guidelines of Punjab Solid Waste Management Guidelines, 2007 and to the best international practices of composting across the board.

Costing of the Project

The total project cost has been deduced by surveying the market and by keeping in view the

financial budget. The costing method which has been used in this project is top to down

costing.

Serial Number

Description Amount in US $

1 Plant & machinery 2,791,000.590

2 Civil work & land development 2,481,000.228

3 Furniture & fittings 64,000.956

4 Others 186,000.501

Grand Total 5,522,002.275

Source- Briefing of Composting of Organic Content of Municipal Solid Waste in Lahore, Pakistan, July, 7th 2008

Approximately, it leads to the investment of US $5.52 which is one of the major investments

in composting in Pakistan. The risk involvement in this project is also quite high but the

Lahore composting Pvt limited has several alternatives plan in order to avoid the risk which

can be caused by this project to safe group.

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Estimating benefits of the Project

The estimating financial benefits which can be gained through the Lahore composting

project are based on the figures provides by the safe group as well as from the feasibility

study of World Bank.

Activity Revenue US $million

Sale of Carbon Credits (@ US$ 11/tons of CO2) 0.858

Sale of 5591 Metric tons Compost /Year (@ Rs.250 per 50 kg bag)

0.940

Total Estimating annual Revenue 1.798 Source- Briefing of Composting of Organic Content of Municipal Solid Waste in Lahore, Pakistan, July, 7th 2008

Beside these financial benefits, there are several other benefits which surely contribute

much in overall development of the country as well as the concerned stakeholders. Few of

them are

The project Produces cheap organic fertilizer which improves per hectare yield. Thus

promoting farmers’ income and contributing to economic sustainable development

of the region.

The Project will help in transfer of modern technology (state of art Minaret

technology) and increases skilled labor opportunities and created about 80 full-time

jobs at the project plant.

The project would also promote sustainable development of Lahore Municipality by

improving the environment quality and demonstrate the commercialized practice of

composting that could assist Pakistan’s central and southern regions and other

countries in meeting the objectives regarding re-use of waste.

The project has created new economic activities for everyone involved in the value

chain.

The project activity helps in reducing GHG (methane) emission levels in the

environment. Additionally it would reduce the amount of waste going into the

landfill thus increasing the lifespan of the waste landfill.

The organic fertilizer of Lahore Compost is a substitute of expensive chemical

fertilizer. While reducing the expenditure incurred on chemical fertilizer, it affords

small farm owners same level of crop yield.

The compost produced by Lahore Compost is far less expensive than locally

manufactured as well as imported fertilizer (urea, DAP, etc) and compost. It

complements as well as substitutes chemical fertilizer.

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References

[1]. Syeda Adila Batool and Muhammad Nawaz Ch, Municipal solid waste

management in Lahore City District, Pakistan , Science Direct Journal, 20 January,

2009

[2]. Composting of organic content of solid municipal waste in Lahore, June 12, 2009,

Clean Development Mechanism Authority, Pakistan

[3]. Municipal solid waste management program, united nation environment

program, division of technology, industry and economics, 2009

[4]. Pakistan Country Paper, SACOSAN III, November, 14 2008, Ministry of

Environment-Government of Pakistan

[5]. Lahore Composting, June 3, 2008, Project Information Document- World Bank

[6]. Ata Ul Haq, Disposal of Municipal Solid Waste through Composting, October 29,

2007, Lahore Compost Private Limited

[7]. Briefing of Composting of Organic Content of Municipal Solid Waste in Lahore,

Pakistan, July, 7th 2008

[8]. Clean development mechanism, Estimation of the carbon reduction, 28 July 2006

[9]. LUDP / Solid Waste Disposal Plan 1991and Environment Impact Assessment of

Mahmood Booti Municipal Solid Waste Dumping Site, Lahore by NESPAK in

March 2004

[10]. Solid waste generation in Pakistan, Ministry of Environment Pakistan, 2004