1. Socially Acceptable Costs for Municipal Solid Waste Management Services Vojtěch Doležal, SEWACO s.r.o 24 June 2015 ISWA Study Tour WASTE-TO-ENERGY

2. Project documentations

3. Waste service fee

4. EU guides http://ec.europa.eu/regional_policy/sources /docgener/studies/pdf/cba_guide.pdf

5. DETERMINATION OF THE GRANT Regulatory framework Article 55(2) maintains the funding-gap method as the basis for the calculation of EU grant in revenue-generating projects, stipulating that the eligible expenditure cannot exceed the current value of the investment cost less the current value of the net revenue from the investment over a specific reference period appropriate to the category of investment concerned.

7. Polluter Pays Principle The Polluter Pays Principle is one of the principles of Community environmental policy (Art. 174 EC Treaty) and applies throughout the European territory. Specific Community legislative provisions exist for waste. Under Directive 2006/12/EC of the European Parliament and of the Council on waste, in accordance with the polluter pays principle, the cost of disposing of waste must be borne by the holder who has waste handled by a waste collector or by an undertaking and/or by the previous holders or the producer from which the waste came (Art. 15).

8. Polluter Pays Principle Ideally, the charging system should be based on the real consumption of resources, and tariffs should at least cover operating and maintenance costs as well as a significant part of the assets’ depreciation. An adequate tariff structure should be envisaged attempting to maximise the project’s revenues before public subsidies, while taking affordability into account. For instance, a commonly accepted affordability ratio for water supply and sanitation is 4%. The Commission encourages the Member States to provide information in their guidance documents about the affordability ratios (for average and/or low-income groups) which may be taken as a benchmark for the projects that will be submitted for co-financing.

9. Waste management priorities

10. Waste management Brno

11. Waste incom (2013) Others 12 000 tun South Moravian region 125 740 tun City Brno 74 879 tun Olomouc Region 26 000 tun Miscelenius 9 336 tun

12. Waste calorific value

13. Financial analysis

15. Economic analysis When the methodologies proposed are controversial, or data are lacking, then a qualitative analysis of the externalities can be conducted. However, in such a case, results cannot be used in the monetary analysis and must be inserted in a multi-criteria analysis.

16. Risk assessment

19. Environmental analysis The main elements of an EIA are the following: emissions into the atmosphere, especially greenhouse gas emissions (impacts relevant for incineration); waste water discharges and soil contamination (impact relevant for land-filling and incineration); impacts on biodiversity (impact relevant for major projects built near protected areas); impacts on human health, linked to pollutant emissions and contamination of the environment (impact relevant for any waste treatment facility); noises and odours (impacts relevant for many waste treatment plants); aesthetic impact on landscape (impact relevant for landfill and incineration); impacts, which may negatively affect mobility, existing infrastructures and so on, due to the increase in local traffic due to waste transportation to the landfill or treatment plant; risk management of the site such as fire and explosions (impact relevant for some specific waste treatment plants such as oil waste treatment plants and incinerators); in urban areas, disruptions can also occur during the construction phase, while, in management phase, in addition to those listed above, disturbances are likely to be linked to the collection of waste.

20. Residual value of the investment Assumed that the technological part of the investment is completely worn out at the final year, the Residual value is computed on the construction elements of the Project having the estimated useful life of 30 years and coefficient of obsoleteness 0.6 using the formula: where: Ca = Cost of Acquisition Dp = Depreciation period T = Years of use Io = coefficient of obsoleteness

21. Operating Revenues

22. Heat output to Brno (2012)

23. Operating Costs

24. CBA – unit prices

25. Calculation of the Financial Internal Rate of Return without Subsidy

26. Calculation of the Financial Internal Rate of Return with Subsidy

27. SENSITIVITY ANALYSIS Each revenue and cost item has been tested to assess its impact on the FNPV/C of the investment. Sensitivity indicator (SI) has been used as benchmark for the numerical method. SI compares percentage change in FNPV with percentage change in variable or combination of variables. Each variable has been tested in a range of 10% deviation from the base value.

28. Sensitivity Analysis of costs and revenues - numerical

29. Impact of Variables in descending order (SI)

30. Overview of damage caused by the emissions from incineration, illustrated as dose-response relations.

31. Emission Study NOx without Project

32. Emission Study NOx with Project

33. NO 2 pollutions in city Brno

34. Waste service fee

35. Waste incinerater in 1905

36. Waste incinerater in 1989

37. Waste incinerater in 2010

38. Discussion Vojtěch Doležal, SEWACO s.r.o ISWA Study Tour WASTE-TO-ENERGY