Investor in the construction of a sorting line in Mykolaiv explains why the city needs this project

A similar waste sorting project is already operating in Zhytomyr, photo by Dmytro Honcharov

Mykolaiv plans to build a modern sorting line for processing mixed household waste. The company «West Tu Energy Niko», which won the investment tender organised by the city council, assures that such a system will not only reduce the load on the city's landfill but will also allow the city to save money, create new jobs and gain access to international «green» financing.

The company's director, Dmytro Honcharov, told NikVesti about this in a commentary.

According to him, the project to create a sorting complex is based on the requirements of the Law of Ukraine «On Waste Management» and meets modern environmental approaches to household waste management. Its implementation will allow Mykolaiv to become one of the first cities in Ukraine to implement such a system on a public-private partnership basis.

«Every community will definitely have such sorting lines, and this investment project will allow our community to be among the leaders, which means access to international grants and programmes «green» financing, improving the investment attractiveness of the community,» said Dmytro Honcharov.

Dmytro Honcharov noted that Ukraine already has a successful experience of implementing a similar project in the city of Zhytomyr. A sorting line was introduced there as part of a pilot programme, which proved to be effective: the share of recyclables collected increased, the load on the landfill decreased, and the groundwork for the development of an alternative fuel system (SRF) was laid.

Sorting station in Zhytomyr, photo by Dmytro Honcharov

Sorting station in Zhytomyr, photo by Dmytro Honcharov

We asked him about concerns among city council members about the terms of the agreement, which envisage a 25-year period of cooperation. There were warnings in the city council that this was too long and could limit community's flexibility. At the initiative of the head of the city council's planning and budget commission, Fedir Panchenko, an alternative draft decision has already been developed to refuse to sign an agreement with «West Tu Energy Nico» for waste sorting.

However, the investor insists that such projects require a long-term planning horizon.

«These concerns are based on emotions rather than facts. The agreement provides for a standard public-private partnership model for infrastructure projects. The 25-year term is a typical period for return on investment in the waste management sector. It corresponds to the depreciation period of the equipment and the entire technological infrastructure. Without such a planning horizon, such projects are simply not viable. In addition, it was the Mykolaiv City Council that approved the terms of the tender, which provided for the possibility of setting such a period. As an investor, we acted within these rules. It is difficult for me to imagine implementing such a project for 5 or even 10 years — this creates instability and uncertainty for both the community and the investor. A logical question arises: what will happen after the end of the short-term agreement? What about equipment, staff, logistics, and established processes? A long-term agreement allows us to guarantee the quality of services, tariff stability and community control throughout the entire period of the contract,» said Dmytro Honcharov.

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"The project will involve the construction of a modern waste treatment centre. The main goal is to extract valuable recyclables (plastic, glass, paper, metals, organics) from the mixed waste stream before it is disposed of. This will significantly reduce the amount of waste going to landfill and return resources to the economy.

«Low-calorie waste that cannot be recycled but has a high calorific value can be processed into SRF fuel, which can be used in heat and power systems, for example, in cooperation with «Mykolaivoblteploenergo», which can reduce heating tariffs for the population,» said Dmytro Honcharov.

The company estimates that the complex will initially reduce the amount of waste disposed of at the landfill by 15-20%, and in the long term — up to 60-70%. This will extend the life of the current landfill, reduce the community's environmental tax costs and reduce environmental risks.

The project is expected to create up to 200 new jobs. These will include sorting line operators, logisticians, IT specialists, maintenance workers and administrative staff. The company also expects new revenues to the city budget in the form of taxes.

As a reminder, on 20 May, Mykolaiv selected a company to build a sorting line for solid waste treatment. The winner of the tender was Waste To Energy Niko.

In September 2-24, the procedure for the operation of the household waste sorting line and the terms of the tender were agreed upon. It was reported that the sorting line will be able to process up to 70% of waste, and the remaining 30% will be buried. The project stipulates that the company that wins the tender will transfer at least 10% of its profits to the maintenance of the landfill.

Landfill near Mykolaiv

Back in 2020, in a commentary to NikVesti, the mayor of Mykolaiv said that the city's existing landfill would last for another 10 years, i.e. until 2030.

It is located on the territory of Vesnianske village council in Mykolaiv district. The landfill was put into operation in 1972 with a 50-year lifespan, i.e. until 2022. It is designed to dispose of 50 million cubic metres of waste.

The report on the strategic environmental assessment of the draft master plan for Mykolaiv, published in 2018, stated that the city's landfill capacity was 98% exhausted. Therefore, it added, it is imperative to build new modern waste sorting and recycling facilities, introduce separate waste collection, and increase the use of recycled materials.