Introduction > Develop Project Plan > Assess Feasibility > Identify and Select Finance Source/Instrument > Mitigate Risks > Secure Permits and Approvals > Seek Project Funding/Finance > Structure and Close Financing > Case Studies > Ningbo, China > Acknowledgements
Mixed Financing Sources Successfully Fund Organic Waste Management for Households in Ningbo, China
The city of Ningbo is a key port city on China's southeastern coast. In 2009, the city's urban areas generated 1.19 million tons of municipal solid waste, all of which was either landfilled or incinerated, with minimal informal source separation. Aiming to lead in municipal solid waste management, Ningbo committed to becoming a model city and was selected as one of 46 Chinese cities to implement mandatory sorting of residential waste. In partnership with the World Bank since 2013, Ningbo worked to increase waste collection infrastructure and accessibility, developed an anaerobic digester for segregated organic waste, and promoted waste separation and treatment best practices at both the household and institutional levels.
In line with the comprehensive approach to organic waste management, the project used diversified, mixed financing sources and implementation pathways to meet its financial needs. The Ningbo Municipality allocated $172 million in financing and adopted a regulatory framework creating an enabling environment for the collection of household food waste to provide sufficient feedstock for the household food waste treatment facility. The World Bank provided a loan of $80 million and technical waste management support, including on financial aspects. In addition to these two primary funding sources, a Public-Private Partnership (PPP) with a private investor supported the organic waste treatment facility’s development and operations. The private investor was responsible for $24.8 million toward the facility, as well as technology procurement and operations.
The project successfully ran from 2013 to 2020 and achieved source separation participation of 905,000 households and all institutional waste generators, resulting in a 17.5 percent separation rate for household organic waste. The PPP-financed treatment facility’s use of organic waste for biogas production is estimated to have mitigated 50,000 tons of carbon dioxide (CO2)-equivalent per year (i.e., equivalent to the greenhouse gas (GHG) emissions of 11,900 gasoline-powered vehicles1). The success of this project inspired a follow-up World Bank collaboration to support Ningbo’s efforts to reduce plastic waste.
1 Find other GHG equivalencies here.
Source
World Bank Group, 2021, Improving Waste Management and Resource Efficiency: the Ningbo Experience.