Products 

When reaching full design capacity in 2029, the following annual sales volumes are planned:ferrous metal scrap - 2,700 tons, non-ferrous metal scrap -675 tons, waste paper -6,075 tons, cullet - 5,400 tons, PET bottles -2,025 tons, PE granules -8,750 tons, strapping tape -2,000 tons, compost -100,000 tons, RDF fuel – 108,000 tons.

All products are planned to be sold in the domestic market.

Project

This investment project (hereinafter referred to as the "Project") provides for the creation of a techno–ecological park for the reception and processing of solid household waste (MSW) with a capacity of 250 thousand tons per year in Ust-Kamenogorsk, East Kazakhstan region. The techno-ecological park will include a waste recycling plant with sorting lines, waste recycling zones, production lines for creating alternative fuels, as well as 3 stations between the nearby settlements of Altaysky, Glubokovsky, Ulansky districts for garbage transshipment.

Leading European companies were selected as suppliers of equipment for the techno-ecological park and waste transfer stations: the Spanish company IMABE IBERICA S.L., the German companies HERBOLD, NAUE and STARLINGER, as well as the Italian company SOREMA & PREVIERO and the Austrian company EREMA.In cooperation with the local executive body, a search is underway for a land plot for the construction of the plant.

The initiator of the project

Recyclemanagementcompany LLP was founded in 2020 to implement a project to create a techno-ecological park. Under the leadership of the Chairman of the Supervisory Board, 3 waste recycling plants were built in Kazakhstan.

Market

At the end of 2022, in Ust-Kamenogorsk and the East Kazakhstan region, the volume of solid waste generation amounted to 220 thousand tons and 200 thousand tons, respectively. The level of solid waste recycling and recycling reached 7% in Ust-Kamenogorsk, 1% in the East Kazakhstan region. According to the Ust-Kamenogorsk Development Program until 2025 and medium-term prospects until 2030, it is planned to increase the share of solid waste recycling to 32% in 2026 and to 80% in 2030, and reduce waste generation at sources to 10% by 2030.

Investment attractiveness of the project: 

The amount of investments is 25 812 mln. tenge;

 NPV –9,630 mln. tenge; 

IRR -21.4%; 

Payback period of the Project -6.7 years; 

Discounted payback period -11.6 years.

What is the attractiveness of the project? 

• Advantageous location. The placement of a techno-ecological park in Ust-Kamenogorsk will allow covering the consumer markets of Eastern Kazakhstan, where more than 5 large and 15 medium-sized enterprises are engaged in the production of paper and pulp products, glass containers, plastic products and non-ferrous metal building structures. The location of the Project also provides access to raw materials. In 2022, the volume of solid waste generation in Ust-Kamenogorsk amounted to more than 200 thousand tons. Such a volume of solid waste generation will provide sufficient reserves to fully load the capacity of the garbage processing plant. 
• Environmental aspects. Currently, there is a low (25.4%) level of solid waste recycling in the country, and most of the solid waste (about 74%) is sent to landfills. In 2022, the volume of disposed and buried waste in the Republic of Kazakhstan amounted to 2.6 million tons, including 408 thousand tons of waste in the Almaty region. Effective implementation of the MSW recycling project will prevent the ingress of mixed waste into landfills and unauthorized landfills, reduce the volume and area of solid waste disposal at the landfill, thereby reducing environmental risks.

Investment proposal

The Project requires financing in the amount of 25 812 mln. tenge, of which:

• 80% (20,660 mln. tenge) – debt financing from JSC "Zhasyldamu";
• 20% (5,165 mln. tenge) – investor participation.

The proposed financing structure and government support measures are indicative, the final structure of financing and participation in the Project will be determined based on the results of joint negotiations with the investor.