In cooperation with its long-term partner, OAK, WTEI has completed a feasibility study for the first waste-to-energy (WTE) plant in Egypt. Previously, we reported that WTEI entered a consortium for waste-to-energy projects. Later in August 2020, the feasibility study started to prepare the project for funding.
With a particular focus on the development of Concession Agreement (CA), Power Purchase Agreement (PPA), and Financial Model, such documentation represents an intellectual platform for current and future opportunities.
Content of the feasibility study for the first WTE plant in Egypt
Feasibility study development involves preparing the Request for Information (RFI), which typically contains 60-70 questions. These questions are related to the location of the plant, geology, seismic data, underground water resources, city grid connections, and other relevant factors. Ecology-related questions have a special focus in RFI: distance to nearest civil houses, allowed chimney height, and climatic conditions. Local developer to answer this comprehensive RFI, in close cooperation with governmental authorities. Additionally, RFI focuses on the involvement of local men and entities in the project.
Later, with RFI answers in hand, we start communications with a technology provider(s). The goal is to confirm the applicability of the technology for the particular project, reach a mutual understanding of CAPEX and OPEX, and provide data for the final financial model. A Technical Proposal from a technology provider is a crucial component of the feasibility study process. Therefore, the final financial model of the project uses data represented in the Technical Proposal.
For the first WTE plant in Egypt, OAK and WTEI developed two independent financial models. The final cross-checking of models and implementation of the last fixes in the feasibility study necessitated a special meeting. Founders of WTEI and OAK met in London at the beginning of December to accomplish the feasibility study analysis and discuss more than 15 projects in the cooperation pipeline. As a result, the feasibility study for the first waste-to-energy (WTE) plant in Egypt was deemed accomplished. OAK plans to reach financial closure in January and commence project funding.
