Local municipalities in the Eden District Municipality (EDM) face greater financial and institutional pressure, due to the separate solid waste collection and disposal approaches. This threatens their ability to deliver on their mandates. We were tasked with assisting the formulation of a request for proposal (RFP) by Eden DM, to construct and operate a district landfill site, and innovative waste treatment options on that site. The RFP addressed a regional approach to the integration of the solid waste disposal and management practices in five of the District’s local municipalities. A key element of the RFP, was that bidders were required to provide alternative waste management technologies as part of their bids.
Financial advisory typically follows a predetermined method, but in the case of alternative waste treatment, this is rarely effective. Our advisory approach transcends ‘normal’, as we seek to understand and build key relationships that ultimately champion these projects. As the financial advisor to one of the largest waste management companies in South Africa on this public-private partnership (PPP) project, we developed a bid model, including the financial structuring of the PPP bid and associated off-take agreements, and investigating debt raising options. We used innovative approaches to enable the delivery of alternative waste treatment options – a new concept in Africa – thereby improving the projects affordability and financial sustainability.
EDEN District Municipality