1. Project Background

Hefei city, the capital of Anhui Province, is an important scientific and educational base in China and the hygienic and garden city as well, with a population about 1.2 million and built area of 89 square kilometers. At present, the amount of daily garbage amounts to 800 tons per day in the whole city, and is increased by 10% annually. Anhui Provincial Party Committee and People's Government attach great importance to the harmless disposal of daily urban waste and put forward an objective of 100 percent rate of harmless disposal. Qingxi Road Urban Waste Disposal Plant, the only one of its kind now, has already been saturated and is hard to meet the development of the city, so to build a new refuse disposal plant is extremely urgent.

2. Project Progress

Since March 1997, the Party Committee of Hefei City has attached great importance to setting up a new refuse disposal plant. Leaders at different levels from Provincial and Municipal Government are concerned with the construction of this project and had on-the-spot investigation many times.

The plant is located in the place where Hefei suburb and Changfeng county meet, 12 kilometers away from the city downtown, with a programmed plant area 33.35 hectares. The combination of burning and artificial manure technology is applied, with hygienic burying as a supplement under special situation. Designed processing scale is 800 t/d urban waste, in which, 400 tons of refuse is made into artificial manure, 300 tons burnt, and 100 tons buried hygienically. Phase-I includes the content that 400 tons of refuse is made into artificial manure, 100 tons buried hygienically, requisition of 26.013 hectares of land, with investment of RMB 95.00 million. Phase-II includes 300 tons of refuse burnt, with an investment of RMB 49.00 million. Phase-I has already started on 11 July 1998, with accumulated investment of about RMB 90 million and will be put into operation soon. Hefei Municipal City Appearance Commission, the legal person of the project, is in charge of the daily works.

3. Construction of Phase-II

Phase-II of the project mainly includes daily refuse burning, with a processing scale of 300 tons of fresh refuse burnt and 100 tons of sieved-out refuse during the high temperature artificial manure making process, with the total investment of RMB 49.00 million.

4.Technology Applied

Three vertical burning furnaces are used including two 150-ton burning furnaces and one 100-ton sieved-out refuse burning furnace; and wet filler dust catcher is applied for the gas treatment (gas emitted should be in accord with the second grade standard regulated by the State); the sewage is treated by processes of precipitation, separation, filtering; and the waste residue will be made into prefabricate components with a certain number of cement.

To buy three burning furnaces

(1) Two 150t/d fresh refuse burnt furnaces

(2) One 100t/d sieved-out refuse burnt furnace

(3) 2 hectares of land will be occupied, 2/3 of which for combustion of 300 tons of waste per day and 1/3 of which for combustion of 100 tons of sieved-out waste

5. Benefit Analysis

Along with the social development, the waste disposal work has been given more and more attention from the governments of various levels. The successful operation of the plant with the combustion technique can bring a huge market for the waste disposal industry. The after-heat can be used for power generating, civil heating supply, and also the residue, mixed with cement can be made into new-fashion building material .

In this project, an income of 3 million RMB will be gained annually from 7 million KWh of power generating, 4.6 million RMB from 57000 tons of external steam supply and 6 million RMB from 6 million bricks produced annually. After deducting the operating costs, the annual profit will be 6 million RMB, and the total investment can be recouped in 8 years.

Meanwhile, certain proportion of the waste disposal fee, which is to be approved in the near future, will be collected as part of investment returns.

6. Funds Raising

95 million RMB of the investment for Phase I of the project has been in place. Now it is expected that 49 million RMB of the investment for Phase II of the project will be collected through Investment Conference.

7. Cooperation Mode

Joint venture: Chinese party will supply the land while the overseas investor invests by capital, two sides operate jointly and share profit.

Solely foreign-funded: The land will be arranged, in certain period, for the overseas investors free of charge, who will be fully responsible for the construction, management of the plant. And, after a period of time, the plant will be transferred to the Chinese partner. The investor may decide how to use the after-heat from the combustion, Chinese side can assist investors in seeking supporting policies in management. Details can be further negotiated.

Project Unit: Hefei City Appearance Commission

Person to contact: Wang Kelin

Tel: 0551-2679674