DETERMINATION OF WASTE TREATMENT FEE PRICING MECHANISM FOR MUNICIPAL SOLID WASTE BY MECHANICAL BIOLOGICAL TREATMENT METHOD UTILISING THE PUBLIC PRIVATE PARTNERSHIP MODEL IN THAILAND

Abstract

Private participation in the development of municipal solid waste treatment projects through public-private partnership models accelerate the implementation of sustainable treatment technologies such as Mechanical Biological Treatment (MBT) facilities within developing countries without creating excessive burden to government 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.