Municipal Solid Waste Sustainable Management of the Historical City of Cusco
and Surroundings –»RETAMA» Project

The project involves the treatment of 400 tons of Municipal Solid Waste (MSW) of the historical areas of Cusco city and surroundings areas that belong to the Vilcanota Valley, and the closure of the Landfill of Cusco and open dumps. Currently, 180 tons of MSW are disposed on rivers and open landfills, the remaining; around 220 tons of MSW are disposed in adequate sanitary landfills which 60% of the waste is organic. The project comprises not only the treatment of the organic part of the MSW through a composting and humus plant but also the recycling of the inorganic waste. However, it is estimated that between 15-20% of the MSW is nor usable for commercial purposes. For this, residual waste, it is planed for a second stage of the project to develop a incinerator with a power capacity of 6 MW. Nowadays a small pilot program is running producing 4 tones of compost per day. The definitive project and the MSW collection system is planed to be given in concession or privatization.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
Methane emissions from the landfill and opens dumps of Cuzco will be displaced through:
1. A composting and humus system and an incinerator. Through this process methane (CH4) emissions are avoided leaving only the emission of CO2.
2. Methane emission will be destroyed through a collection and flare system, to be placed in the landfill of Cusco once it is closed. Through this process the methane turns in CO2, producing a reduction in the Global Warming Power (GWP) since CO2 has 21 times less GWP than CH4.
What would the future look like without the proposed CDM project?
According to legislation, poverty conditions, and business as usual Practices, the landfill of Cusco will still in operation together with open dumps. The landfill not has a gas collection system, which is not required by law. It has only some wells for security reasons and a small portion is flared with little supervision and control. Due to lack of resources and poverty open dump will still also in operation.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
It has been estimated that the project would reduce around 2,078,320 tCO2e in a period of 21 years.

Current Status

Earliest project start date
The construction of the project is planned to begin on July 2005. The operation is assumed to start in January 2006.
Estimate of time required before becoming operational
1 year and a half
What is the project lifetime?
50 years
Current status or phase of the project eg: which of the following phases have been completed:
• A pilot project is currently under operation.
• Financing of the composting and recycling stage are closed. For the incinerator no yet.
• Pre – feasibility study is done.
• It is one of the main components of the municipality strategy for the development of Cusco city
• A letter communicating the intention to develop a CDM projects has been already sent to the Designated National Authority on CDM

Estimated Emission Reductions

• Up to and including 2012: 520,132 tCO2e
• Up to a period of 10 years: 807,262 tCO2e
• Up to a period of 7 years: 520,132 tCO2e
• Up to a period of 14 years: 1,235,204 tCO2e
• Up to a period of 21 years: 2,078,320 tCO2e

Project Benefits

• The principal effect of the project is to provide a final solution for the problem of final MSW disposition management for an area considered as on of the main cultural heritage site worldwide.
• The project will move the final destination of MSW outside of natural sanctuaries.
• The creation of employment for 400 people activities related to composting, recycling and gathering.
• To serve as a platform for training and research.
• Provide a source of fertilizers to the crops of the area and inputs for the industry
• Avoid pollution of rivers and improvement of the citizens health.
• The revenues from CER’s will contribute to the company to make sustainable the operation and maintenance for an adequate management of the collection, transfer and final disposition of Municipal Solid Waste.

Project Participant and Financing

Total project cost estimate:
• Costs for the implementation of the recycling and composting: US$ 1,500,000
• Cost for the renewal of the MSW trucks fleet US$ 5,000,000
• Incinerator with electrical power plant: US$ 15,000,000
• Total project costs: Minimum: US$ 1,500,000 Maximum: US$ 21,500,000

Sources of finance to be sought or already identified:
• Equity: US$ 500,000 Municipality of Cusco
• Debt: US$ 1,500,000 World Bank loan
• Carbon finance contribution sought: As much as the project can have in advance.

Contact Information: