Determination of Waste Treatment Fee Pricing Mechanism for Municipal Solid Waste by Mechanical Biological Treatment Method utilizing the Public Private Partnership Model in Thailand

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Published: Mar 5, 2019
Keywords:
Solid Waste Management Municipal Solid Waste Waste Treatment Fee Mechanical Biological Treatment Pricing Mechanism Infrastructure Sector

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Adrian Paul Raj
Parames Chutima

Abstract

The participation of the private sector in equity investment and operation of municipal solid waste treatment facilities through the Public-Private Partnership (PPP) model promotes the implementation of sustainable solid waste treatment technologies without creating excessive financial burden in governmental infrastructure investment. The introduction of preset pricing mechanism to regulate potential waste treatment fee structure based on pre-determined project internal rate-of return mitigates multi-party risks, such as the potential developer project losses or the opportunity to profiteer. Research encompasses technical assessment of project requirements for implementation of required technologies, commercial analysis of project capital expenditure (CAPEX), operational expenditure (OPEX) and assessment of revenue streams of the facility. Computer simulation of commercial data computes the case study of a 600 tonne per day MBT facility’s first-year waste treatment fee of THB 546.00, THB 709.00 and THB 890.00 based on pre-determined project internal rate of returns of 8.00%, 10.00% and 12.00% respectively. Macroeconomic data influences within pricing mechanism determines long-term effects to facility pricing fee structure to further mitigate project commercial risks.

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Raj, A. P., & Chutima, P. (2019). Determination of Waste Treatment Fee Pricing Mechanism for Municipal Solid Waste by Mechanical Biological Treatment Method utilizing the Public Private Partnership Model in Thailand. INTERNATIONAL SCIENTIFIC JOURNAL OF ENGINEERING AND TECHNOLOGY (ISJET), 2(1), 11–19. Retrieved from https://ph02.tci-thaijo.org/index.php/isjet/article/view/175901
Issue
Vol. 2 No. 1 (2018): January-June
Section
Research Article

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