Border Environment Cooperation Commission
Wastewater Treatment
Facility and Recycling Paper Facility in
Región Cinco Manantiales,
Coahuila
Financial Feasibility and Project Management
1.
Type of Project. A
Recycling Paper Facility (RPF) and Wastewater Treatment Plant (WWTP). The
integrated project encompasses the construction and operation of a paper and
cardboard recycling facility for the fabrication of paper liners for cardboard
boxes; and the construction and operation of a WWTP. Grupo Solar presents this project, a private Mexican corporation
engaged in the business of recycling paper.
Additionally, the project contemplates an in-kind contribution toward
the construction of a sanitary landfill or other related public facilities.
This project fits within the BECC's definition of category 1 of the Private
Sector Projects as a Public/Private Partnerships, where the project benefits the
community-at-large.
2.
Project Location. The project components identified above
will be located in Region Cinco Manantiales, in Morelos and Allende, Coahuila,
and the respective site is within the 100 km border region.
3. Project
Description and Work Tasks. The project is described in the following
sections. It is important to mention
that the Master Plans funded by the BECC (water and wastewater, and solid
waste) were instrumental in developing a regional solution for this particular
project.
The municipalities of Allende, Morelos, Nava, Villa Union, and
Zaragoza, in Coahuila, Mexico comprise region Cinco Manantiales. It is located in the northeast quadrant of
the state. Region Cinco Manantiales has
an estimated population of about 71,500 people, which is expected to increase
to over 117,000 people by the year 2020. However, the plan is to serve Morelos
and Allende first, then connect the rest of the communities at a later date,
the current population for Allende and Morelos is approximately 22,949 and
8,196 respectively. Presently, the needs of the residents in terms of sanitary
sewer, wastewater treatment, and collection and disposal of municipal solid
waste (MSW) are not being met. Thus,
the integrated project as presented, will contribute to the strengthening of
the environmental infrastructure and the economy of the region. The components
of the project are described below.
·
The RPF will consist of an operation with the capacity to process
140 metric tons per day and to generate 43,200 metric tons/yr of liner paper
during the first phase. The second
phase will increase the capacity to 225 metric tons/day and is expected to
generate 66,000 metric tons/yr of liner paper. The raw material will come from
both the US and Mexico, in approximately equal shares of 50% each. The paper recycling process requires a water
supply of up to 0.571 mgd (25 lps).
This water will be extracted from wells or irrigation canals, treated
(if necessary), used in the process, treated again, and subsequently discharged
back into irrigation canals or into a proposed green belt. The raw material coming from the U.S. will
be hauled by railroad. This project
component will help extend the area's landfill capacity, reduce consumption of
live trees, recycle wastewater and non-potable water. Additionally, the project will create 140 direct jobs and 260
indirect jobs, which are needed in the region.
·
The wastewater treatment plant will have a mixed technology with
the use of a clarifier and aerated and facultative lagoons, and will have a
capacity to treat up to 2.283 mgd (100 lps). The WWTP is being proposed to be
constructed in Morelos, adjacent to Allende's city limits. Currently, the
region has no wastewater treatment facilities other than unlined lagoons and
cesspools. Approximately 53.64 mgd (235
lps) of wastewater could be generated in the region, Morelos and Allende
currently can generate about 0.571 mgd (25 lps), and it would go up to about
1.712 mgd (75 lps) once both cities have all residents hooked-up to the system.
By constructing this facility, coverage of sewage treatment would increase by
35% for the entire region, and 100 % for Morelos and Allende.
·
Grupo Solar is considering an in-kind contribution for the
construction of a regional sanitary landfill or other related public
facilities. The recycling plant is mandated by federal law to dispose of its
solid waste at a permitted sanitary landfill.
The process will generate about 20 metric tons per day of solid waste. Although
this portion of the project is a very important component, is not being
considered part of the project for certification.
4. Compliance
with International Treaties and Agreements. The project will have positive
international impacts, because it will help reduce the wastepaper and cardboard
delivered to region landfills.
Additionally, the air emissions generated by paper and cardboard trucks
will be reduced since the bulk of the raw material will be transported by
railroad. In addition, it will reduce the threat of contamination of the regional
aquifer by treating the wastewater for the communities of Morelos and Allende,
which are currently being discharged into open lagoons, this project eventually
could be a pilot project for the rest of the communities in the region.
II. Human Health and Environment
1. Human
Health/Environmental Need. The project will address human health and environmental concerns
by reclaiming paper, cardboard, non-potable water, and wastewater. The recycling project presented herewith
provides built-in benefits to the region.
Some of these benefits are described below:
·
Treatment of up to 2.283 mgd (100 lps) of raw sewage from the
region. About 1.94 mgd (85 lps) will be
used to irrigate a proposed 500 acres (200-hectare) green belt, as part of a
reforestation/buffer zone program within the RPF property, the other portion
could be recycled through the plant.
·
The reuse of waste paper and cardboard will extend the landfill
capacity, and will help reduce the consumption of live trees.
·
Private participation (through funding) in the construction of the
regional landfill, or other related public facilities.
·
Reduce air emissions from trucks transporting cardboard back and
forth across the US - Mexico border. By
using the railroad system, the distances covered by truck traffic within the
border region will be reduced, thus generating less pollution from trucks.
Furthermore, by designating a contribution
toward the construction of a landfill, the communities will benefit by
improving the collection and management of municipal solid waste (MSW). The
inefficient handling of MSW triggers several impacts to the environment. For instance, continuous fires in the open
dumps pose a threat to human health, or not having restricted access to
landfill facilities promoting disposing of hazardous substances or bio-medical
waste at the dumps and open fields. In
some instances, leachate represents a threat to the regional aquifer. With a
sanitary landfill these problems tend to decrease gradually, due to the reason
that it would be a regulated facility.
The construction of the WWTP, will reduce
dramatically the potential to pollute the regional aquifer, by reducing the
number of cesspools and latrines. Additionally it will eliminate the use of
open pits to discharge wastewater, and will reduce the risk of contamination to
the regional aquifer.
2. Environmental
Assessment.
The environmental
studies for the recycling plant and the treatment plant have been finished and
being reviewed by BECC, the National
Institute of Ecology (INE) and by the State of Coahuila. The study did not reveal negative
transboundary impacts from the selected site.
The preliminary environmental assessment
studies contained in the Master Plan for the Improvements of the Water,
Sanitary Sewer, and Wastewater Treatment Services for Cinco Manantiales,
sponsored by the BECC, indicated that the WWTP location proposed by Grupo
Solar, fits within the Master Plan will not have negative impacts on the site's
flora, fauna, environment, or the ecosystem.
3. Compliance with
Environmental and Cultural Resource Laws and Regulations.
No impacts to cultural resources are
expected, as the proposed paper recycling plant and the wastewater treatment
plant will be located in a previously developed tract of land, which is near a
railroad spur and associated appurtenances.
Nonetheless, this issue will be further discussed during the development
of the appropriate cultural and environmental assessment by the consultant, and
at the time the final designs are completed for both plants (RPF and WWTP). The
sponsor will be required to provide all the required permits before starting
operations.
1. Appropriate
Technology. Recycling Plant. The paper
recycling facility will produce 43,200 metric tons per year, and up to 66,000
metric tons/year during the second phase. The technology to be implemented in
this process is currently utilized in two other sites in Mexico. NADB has indicated
that they will coordinate an independent evaluation of the production
process. This evaluation will also
include a technical review of the experience and expertise of Grupo Solar. This facility has an estimated cost of about
USD $16.2 million.
Wastewater Treatment Plant. Grupo Solar considered two different
alternatives for treating the sanitary sewer for Morelos and Allende.
The first alternative consists of
constructing a WWTP using the wetlands technology. This technology is currently
used in an industrial facility with similar wastewater characteristics. The process will include one digestor, two
plantation trains, and one storage pond.
The estimated cost of this WWTP is USD $1.0 million. Although this
alternative is the most economical, does not provide the adequate treatment and
quantity for the water to be reused in the RPF.
The second alternative considers the
construction of a WWTP using the stabilization lagoons technology. This scheme includes a pretreatment lagoon
(clarifier), an anaerobic lagoon, a facultative lagoon, and a stabilization
lagoon. The estimated cost for this
alternative is USD $1.3 millions. This is the preferred alternative.
Mexican legislation requires the paper
industry to treat their industrial wastewater when is being reused, and to
dispose of their solid waste at a sanitary landfill. Thus, it is imperative that Grupo Solar finds the means to
accomplish this. Grupo Solar has the
option to build their own landfill or send their solid waste to an approved sanitary
landfill.
2. Operation and Maintenance Plan. Grupo Solar
will provide the operation and maintenance manuals for both the paper recycling
plant (PRF) and the WWTP as part of the final design.
3. Compliance with Applicable Design
Standards and Regulations. Grupo Solar has designed the paper recycling facility with modern
leading technology and pursuant to the industry standards. If a landfill is
constructed, it will be designed in general accordance with NOM-ECOL96-083. The
WWTP has been conceptually designed following proven leading technology, and in
accordance with State and Federal regulations.
IV.
Financial Feasibility and Project Management
1. Financial
Feasibility.
The construction of the project (RPF and
WWTP) will have an approximate total cost of $17.5 million, as described in the
table below.
Grupo Solar is seeking a NADB loan for up
to USD $6.5 millions. This amount
includes USD $1.3 million for the construction of a WWTP, USD $5.0 million for
the construction of the recycling plant and a $200,000 in-kind contribution
that Grupo Solar is considering toward the construction of a regional landfill
or other related public facilities. Grupo Solar is seeking a 25-year loan from
NADB.
ESTIMATED TOTAL PROJECT COSTS
|
ITEM |
AMOUNT IN USD |
|
Land |
$ 200,000 |
|
Construction
Activities |
$ 2,000,000 |
|
Machinery and Equipment
* |
$14,000,000 |
|
Office and computing
equipment |
$ 30,000 |
|
Transportation
equipment |
$ 220,000 |
|
Engineering (both RPF
& WWTP) |
$ 250,000 |
|
Working Capital |
$ 800,000 |
|
Total
investment |
$ 17,500,000 |
|
|
|
|
TOTAL COST $
17,500,000 |
|
* Includes WWTP and in-kind
contribution toward landfill or public improvements.
The following table indicates the
funding sources for the paper recycling plant.
Available Funding
|
Amount ($, millions) |
% of Total |
Grupo Solar
|
$10.0 |
57 |
NADB
|
$ 6.5 |
37 |
Voith (machinery supplier)
|
$ 1.0 |
6 |
Total
|
$17.5 |
100 |
The following table indicates the
funding sources for the WWTP.
Available Funding
|
Amount ($, millions) |
% of Total |
Grupo Solar (NADB loan)
|
$1.3 |
100 |
Other sources
|
|
|
Total
|
$1.3 |
100 |
1-Comprehensive Public Participation
Plan.
The objectives of the comprehensive public participation plan (the
"Plan") are to ensure that the community understands and supports the
environmental, health, social and financial benefits and costs of the
project. Grupo Solar submitted a public
participation plan for BECC's evaluation and approval. The Plan comprises the following activities:
gather information documenting public support for the project, develop a
steering committee, identify and meet with local groups and organizations, and
hold a minimum of two public meetings.
2. Steering Committee: Steering
Committees were formed by Grupo Solar emphasizing a regional approach (Allende
and Morelos). The Steering Committees
were responsible for distributing public information and for scheduling a
minimum of two public meetings. The members of the Steering Committee also met
as necessary to develop the process for distributing information to the public
and will help educate the public about the project by providing informational
fact sheets.
3. Local Organizations: One or more
members of the Steering Committee met with representatives of local
organizations to make presentations to ensure the public understands the
project.
4. Public Information: Information
about the project was be provided to the public by members of the Steering
Committees, local organizations and by making the draft Step II document
available at City Halls and schools.
Additionally, the Steering Committee met with the public to inform them
about the project.
5. Public Meetings: Two public
meetings were coordinated between BECC, the Steering Committees and Grupo
Solar. The first public meeting took
place in October 6, 1999, and the second public meeting was scheduled for May
5, 2000. During the second meeting, the
financial aspects of the project were presented to the public. The project will have no negative impacts on
solid waste or wastewater user fees, due to the reason that the sponsor is
purchasing the wastewater from the communities.
1. Definition and
Principles
The project contemplates the integration
of a commercial process that will use waste paper and cardboard as raw
material, avoiding using virgin wood, to generate liner paper. Additionally, the project includes the
implementation of wastewater treatment infrastructure, with the purpose of
replacing the non-potable water and well water consumed during the
process. Furthermore, the project will
also include an in-kind contribution for the construction of a regional
landfill or related public facilities, to dispose of the byproduct waste in an
acceptable manner.
The project promotes improving the quality
of life of the residents of Region Cinco Manantiales, as it will generate
employment opportunities, will ameliorate the impacts on water resources and
potential disease vectors.
2. Institutional and
Capacity Building
The project includes the construction and
operation of a WWTP (total capacity of 2.283 mgd)(100 lps) without any cost to
the communities. The municipalities
will receive a payment of USD $0.04/m3 of wastewater sent and treated by Grupo
Solar. The project will also include
paying up to $70/ton for cardboard collected from the area landfill and
delivered to the RPF. These revenues
will benefit the municipalities and can be used to strengthen the communities'
public utility budget.
The project may also encourage municipal
authorities to institute either new or expanded paper and cardboard recycling
programs in the community. This new or
expanded institutional capacity will provide additional ancillary employment as
well as increased institutional capacity.
3.
Conformance with Applicable Local and Regional Conservation and
Development Plans
The project incorporates results and
information obtained in the following studies:
* Master Plan for the Improvements of
Water, Sewer, and Wastewater Treatment Services in Region Cinco Manantiales.
* Master Plan and Final Design for
Municipal Solid Waste of Region Cinco Manantiales.
These Master Plans were developed prior to
the conception of Grupo Solar's project.
4. Natural Resource
Conservation
The project promotes the protection of the
environment through the following actions:
* The recycling plant will use 100% used
raw material.
* Up to one metric ton will be reclaimed
from the area's landfill per day.
* 140 metric tons/day will be collected
from sources in both the US and Mexico.
* The wastewater used in the recycling
plant will be treated and reused (irrigation of 500 acres (200 hectares) for a
green belt/buffer zone area for reforestation only).
* The wastewater treated from the
communities will promote good health by reducing the use of cesspools and
latrines, and possible contamination of the regional aquifer.
5. Community
development.
The project will promote the creation of
employment (direct and indirect). The
availability of environmental infrastructure will provide wastewater treatment,
and will reduce the amount of solid waste (paper, cardboard) sent to
landfills. The project will also
improve the economic and health conditions of the residents of Region Cinco
Manantiales.
1. Step
II Document
2. Information
regarding the Financial Analysis
3. Agreement between
the communities of Allende and Morelos and Grupo Solar about the sale of the
wastewater