WASTE TO ENERGY PROJECT – ISLAND IMPACT STUDY -PROPOSAL AUGUST 2020-

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AUTHORS: 1. Ms. Ivan Any Vasilica – Overall Project Manager 2. Mr. Adrian Streinu Cercel – MD, PhD, Physician in Infectious Diseases – Healthcare Specialist, former Secretary of State Ministry of Health 3. Mr. Cristian Ștefănescu – Environment and Financial Specialist

Special thanks: MK Business Consultants LTD – Local Environmental specialists

Special appreciation for the Revolutionary Government of Zanzibar and the Public Administration Experts

This impact study was possible due to the grant awarded by the Romania’s International Development Cooperation Agency – RoAid. The study is funded through the official development assistance granted by Romania as a donor state.

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APPENDIX

EXECUTIVE SUMMARY 4 DISCLAIMER 5 SCOPE OF WORKS 6 SOLID WASTE MANAGEMENT DATA 7 EXISTING SWM INFRASTRUCTURES AND EQUIPMENT 16 FINANCIAL SWM SITUATION 21 POWER MANAGEMENT DATA 25 POSSIBLE SOLUTIONS WASTE DISPOSAL / POSSIBLE SOLUTIONS POWER GENERATION 28 WASTE TO ENERGY TECHNOLOGY DATA 31 INTEGRATED PLAN – SOLID WASTE MANAGEMENT 36 SOLID, LIQUID, MEDICAL AND DANGEROUS WASTE TRANSPORTATION PLAN 38 INTEGRATED PLAN FOR SUPPLYING ALTERNATIVE ELECTRICITY GENERATION - TECHNOLOGY AND PLANT DESCRIPTION 43 LOCATION PROPOSED 53 RISK ANALYSIS PROJECT IMPLEMENTATION 54 APPLICABLE LEGISLATION. LEGAL FRAMEWORK 57 ZECO MAPS / LOCATION MAPS 58

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EXECUTIVE SUMMARY Washing hands with soap and water is the single most efficient measure against COVID-19, but 40 per cent of the global population does not have access to clean water and soap in their homes. The pandemic is making it evident that investments in the provision of basic water, sanitation and waste management and hygiene services must be a key priority in the coming years, not least since the progress that has been made so far is now threatened by climate change and rising poverty levels. According to its Vision 2020, further included in the vision 2050, the government of Zanzibar Archipelago has set up several objectives to be achieved, objectives which are essential for the smooth development of the islands. These objectives are as follows: • ‰ Eradicate abject poverty. • ‰ Developing a strong, diversified, resilient and competitive agriculture, industry, tourism and other productive socioeconomic sectors to cope up with the challenges of the changing market and technological conditions in the world economy. • ‰ Attaining a nation whose way of life reflects the highest level of ingenuity, self-confidence and self-esteem; culture, resource base and aspirations. • ‰ Achieving peace, political stability, good governance, integrity, national unity and social cohesion. • ‰ Modernized production and delivery systems of goods and services to meet the basic needs in the society and attain international competitiveness in the leading sectors. • ‰ Attain higher degree of foreign direct investment that will inject sound capital, create full employment and attain positive balance of trade in the export market. Given this strategy and the underlying actions to be taken in order to achieve the above mentioned objectives, there are several areas to be addressed through various projects, which if and when implemented by the private sector with the support of the public sector, would allow great leaps to be taken towards the successful attainment of the Vision Programme. These areas which can be implemented by the private sector relate mostly to the basic utilities and access to these, namely for the purpose of this study, access to basic waste management services and access (free of any exterior influences) to a steady supply of energy – which represents the basis for a successful development of the archipelago. The current document has been drafted by PREMIUM AUDIT with the support of the Romanian Government through ROAID, with the main purpose of analysing the situation in the waste producing and elimination sector on the islands of Unguja and Pemba as part of the Zanzibar Archipelago and in order to propose a solution to the existing situation, with the secondary purpose of analysing the situation in the energy producing sector in the above mentioned area and proposing a solution to the identified problems, all the while analysing the impact such investments would have over the development of the Zanzibar archipelago within the following 10 years. The study follows a unified environmental approach having in mind the best available technologies and as such all the problems identified will have to be solved as environmentally conscious as possible. The study also has been based on an existing strategy as envisioned by Zanzibar Government, strategy that entails the development of IPP with a total capacity of up to 10 MWh during the following 5 years. There is also an environmental assessment study performed by a local specialized company – MK Business Consultants that has analysed all aspects regarding the potential impact of the implementation of such proposals, study which has been used as a partial basis for the current impact study.

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DISCLAIMER

The current document does not present and does not state that it presents a whole picture of the situation as it stands at this moment. As mentioned throughout the document, the best available information sources have been used in its content, however all the data will have to be proven throughout the following years through localized pinpointed studies. This is especially applicable to the future estimates present throughout the document and any and all other estimates concerning the current situation.

Should any new data arise within the following years, data that will contradict the values and info presented in this document, an update will be drafted and presented to all the involved parties.

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SCOPE OF WORKS

The scope of the present impact study is to analyse the current situation existing in the Zanzibar Archipelago (mainly Unguja and Pemba Islands) in relation to the situation of the waste generated by the islands inhabitants and business and the situation of the supply of electricity in the Zanzibar Archipelago, to identify if there are any underlying issues in the above mentioned areas and if so to propose a solution, which would solve at least a majority of the identified issues if any.

The basis for this impact study are the following documents: - A pre-feasibility drafted during 2018 by Premium Audit SRL with the aid of funds provided by RoAid – the Romanian Agency for International Development Cooperation; - A strategy report drafted in November 2018 by Hydroplan Interconsult LTD - An environmental impact study drafted in August 2020 by MK Business Consultants

As such a detailed situation of the waste sector in Zanzibar islands will be presented, alongside with a proposed solution which would solve almost entirely the presented situation. This study will also present the situation of the electricity generation and distribution in Tanzania in general with applicability to the situation in Zanzibar.

Since this study deals with the most pressing problems currently existing on the Unguja and Pemba Islands in Zanzibar, it will also have to propose solutions to solve these issues and as such a full comprehensive solution will be proposed.

The provision of safe water, sanitation and waste management and hygienic conditions is essential for preventing and for protecting human health during all infectious disease outbreaks, including of coronavirus disease 2019 (COVID-19). Ensuring evidenced-based and consistently applied WASH and waste management practices in communities, homes, schools, marketplaces, and healthcare facilities will help prevent human-to-human transmission of pathogens including SARS- CoV-2, the virus that causes COVID-19.

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SOLID WASTE MANAGEMENT DATA

SWM SITUATION & BACKGROUND General data on Zanzibar archipelago

The World Bank predicted the global municipal waste generation will increase from 1.3 billion tons per year in 2012 to 2.2 billion tons per year in 2025. If not managed properly, this will create various social and environmental problems, including air, soil and water pollutions, the spread of diseases and the release of greenhouse gases, particularly methane, to the atmosphere that contributes to global warming.

Zanzibar is part of the United Republic of Tanzania (URT). It consists of two major islands; Unguja and Pemba, and more than fourteen small islands and islets. All islands are situated in the Indian Ocean between 4° and 6.5° south of the equator. The two main islands of Unguja and Pemba are located 40 and respectively 60 km off the coast of mainland Tanzania.

The total land area of Zanzibar is 2,654 km2 of which 1,666 km2 (63 %) comprise Unguja and the remaining 988 km2 (37 %) constitutes . The term “Zanzibar” is also used to denote the capital of the islands (Zanzibar Municipality), which is located on the western coast of Unguja.

Macro-economic situation

According to the OCGS (Office of the Chief Government Statistician of Zanzibar), the following macro-economic figures (2016) show for the Zanzibar archipelago. An update will be requested for 2020 figures as soon as possible (i.e. prior to the start up of the works)

Map of the Zanzibar Archipelago

Macro-economic figures Population 2016 1,488,036 Population projection 2022 1,762,989 % Urban (2012) 46.3 % (ann. increase ca. 3 %) GDP/capita USD 829.7 GDP growth rate (2015-2016) 6.8 % Inflation rate 6.7 % GDP Sector contributions (2016) . Agriculture, Forestry Fishing 25.7 % . Industries 18.6 %

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. Services 45.1 % . Taxes, on products 10.7 % Total production Public - Private 49 % - 51 % Employment rate 79.4 % Unemployment rate 20,6% Population below basic needs poverty line 30.4 % Houses connected to electricity grid 12,768 (44 %) Houses using protected water sources 92.6 % Houses with any toilet facility 83.7 % Tourist arrivals (annually) 376.242 2014-2016 + 28 % From Europe 62 % No. Registered political parties (2015) 23 Main political parties CCM - CUF

Note: The 2016 data are the latest reliable published data available.

Administrative structure

Administratively, Unguja and Pemba are into 5 regions and 11 districts, i.e. 3 regions and 7 districts on Unguja Island and 2 Regions and 4 districts on Pemba Islands.

Regional Government of Zanzibar Government structure – see above

Unguja Island

Geography

Unguja is a hilly island, about 85 kilometers long (north-south) and 30 kilometers wide (east- west) at its widest, with an overall area of about 1,666 square kilometers. It is located in the southern half of the Zanzibar Archipelago, in the Indian Ocean, about 59 kilometers south of the second

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largest island of the archipelago, Pemba. Unguja and mainland Tanzania are separated by the Zanzibar Channel. Unguja is surrounded by a number of smaller islands and islets, with only two of them, Tumbatu and Uzi, being inhabited. Other minor islands around Unguja include Bawe, Chapwani, Changuu, Chumbe, Kizingo, Kwale, Latham, Mautani, Miwi, Mnemba, Mwana wa Mwana, Nianembe, Popo, Pungume, and Ukanga.

Politics

Unguja and the surrounding islands are divided into three regions: Zanzibar Central/South (capital: Koani), Zanzibar North (capital: Mkokotoni), Zanzibar Urban/West (capital: Zanzibar City). Unguja belongs to Zanzibar, which is defined by the Tanzanian Constitution as "a part" of Tanzania with a high degree of autonomy. The local Zanzibar government is based in Stone Town, on the west coast of Unguja.

Population and language

As of the 2012 census, the total population of Unguja was 896,721, mostly concentrated in the Zanzibar urban region. The main settlement on the island is Zanzibar City, which serves as a capital for Zanzibar and which includes the renowned historical city of Stone Town (also a UNESCO heritage site) as well as other populated areas such as Michenzani. Other major settlements on Unguja include Mbweni, Mangapwani, Chwaka, and Nungwi. People of Unguja mostly speak kiunguja ("the language of Unguja"), which is the dialect of the Swahili language that was used as the main model for the definition of standard Swahili.

Economy

Unguja is the island of the Zanzibar Archipelago that has the most developed tourism industry. This accounts for a substantial part of Unguja economy. Agriculture (including the production of spices such as cloves) and fishing are other relevant activities. All along the east coast, most villages also rely on seaweed farming.

Pemba Island

Geography

With a land area of 988 square kilometers it is situated about 50 kilometers to the north of Unguja, the largest island of the archipelago. In 1964, Zanzibar was united with the former colony of Tanganyika to form Tanzania. It lies 50 kilometers east of mainland Tanzania, across the Pemba Channel. Together with Mafia Island (south of Unguja), these islands form the Spice Islands. Most of the island, which is hillier and more fertile than Unguja, is dominated by small-scale farming. There is also large scale farming of cash crops such as cloves. In previous years, the island was seldom visited due to inaccessibility and a reputation for political violence, with the notable exception of those drawn by its reputation as a centre for traditional medicine and witchcraft. There is a quite large Arab community on the island, who emigrated from Oman. The population is a mix of Arab and original Waswahili inhabitants of the island. A significant portion of the population also identifies as Shirazi people.

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The most important towns in Pemba are Chake-Chake (the capital), , and , which is the largest city. The centrally located Chake-Chake is perched on a mound with a view to the west on a bay and the tiny Misali Island, where the tides determine when a dhow can enter the local harbor. Pemba is, with the exception of a strip of land along its eastern coast, a very fertile place: besides clove trees, the locals grow mainly rice, coconut, bananas, cassava and red beans. Pemba is home to several dive sites, with steep drop-offs, untouched coral and very abundant marine life.

Climate

Pemba has a tropical climate, yet somInvestorat milder than Tanzania's mainland and milder than in Unguja Island. This climate is classified as "Aw" by the Köppen-Geiger system. The average temperature in Chake-Chake is 25.5 °C (78°F). The average annual rainfall is 1,364 mm. The monthly average temperatures are usually between 24 - 27.4°C. There are two rain seasons, with most rainfall coming between April and May and smaller rain season coming between November and December. Drier months are January - February, and a longer drier season between June to October.

Economy

The economy of Pemba Island is based on several pillars such as Fishing, Farming and Agriculture and more recently Tourism.

Fishing

Pemba is famous for its rich fishing grounds. Between the island and the mainland there is the deep 50 kilometre wide Pemba Channel, which is one of the most profitable fishing grounds for game fishing on the Swahili Coast.

Farming and Agriculture

Pemba is, with the exception of a strip of land along its eastern coast, a very fertile place to keep it within the global farming industry. Please see below the main agriculture products.

Cloves

A large proportion of the Zanzibar export earnings comes from cloves. The greatest concentration of clove trees is found on Pemba (3.5 million trees) as growing conditions here are superior at the moment than those on Unguja Island. Clove trees can grow to the height of around 10 to 15 meters and can produce crops for over 50 years. Most of the island, which is hillier and more fertile than Unguja, is dominated by small- scale farming. There is also large scale farming of cash crops such as cloves

Tourism

More recently with the booming tourism industry in neighbouring Unguja Island, more adventurous travellers are seeking out the less-crowded Pemba, led by dive tourists seeking the uncrowned and un-spoiled reefs the island offers the experienced diver.

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Population growth forecasts

Data from the OCGS for the 2018 population growth figures show the following population figures:

District councils Population 2018 growth % Male Female Total census 2012 Unguja Urban districts Mjini/Urban-ZMC District 128,262 137,983 266,245 0.8% Magharibi/ West A 91,791 97,935 189,726 7.0% Magharibi/West B 117,081 127,739 244,820 Unguja Rural districts Kaskazini/North A 60,325 63,442 123,767 2.3% Kaskazini/North B 48,915 49,383 98,298 4.2% Kati/Central 44,214 43,242 87,456 2.0% Kusini/South 22,672 23,639 46,311 2.1% Total Unguja Island 1,056,623 Pemba Wete 67,342 70,173 137,515 0.6% Micheweni 65,722 68,358 134,080 2.2% Chakechake 60,592 65,161 125,753 1.6% Mkoani 61,611 64,267 125,878 0.6% Total Pemba Island 523,226 Total Zanzibar Archipelago 1,579,849 2.30%

The expected population growth figures per district and urban/rural areas have been calculated on basis of the 2018 population data, growth figures from census 2012 and the expected general growth figures for Zanzibar till 2025.

POPULATION GROWTH FORECAST UNGUJA AND PEMBA ISLANDS

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As seen above the population will experience a steady growth based mainly on the expansion of the tourism, services and agriculture industries to a level of 2,053,455 individuals in 2038 which means a total growth of 33,36% compared to the 2018 figures which means an annual increase of around 1,67% in real terms.

Please keep in mind that these figures are given as indicative, since no significant events have been taken under consideration, or any significant investments (such as the one depicted in the current study which would have a significant impact on the quality of life and consequently on the population growth).

Other General SWM data

Other relevant solid waste sectors and data with regards to the other major generators of waste on the islands (such as hotels and hospitals) are:

Hotel sector Number of hotels, per hotel class and per district:

Pemba No. % Kaskazini/North Pemba 7 1.5 % Kusini/South Pemba 19 1.9 % Unguja Kati/ Central 33 7.0 % Kaskazini/North A 112 23.7 % Kaskazini/North B 24 5.1 % Kusini/South 154 32.6 % Mjini / Urban Znz 93 19.7 % Magharibi /West A 16 3.4 % Magharibi / West B 15 3.3 % Number and type of Hospitals

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Primary Level Secondary Level Tertiary Level

District PHCUs District Regional Special Referral Total PHCC hospital hospital PHCU PHCU+ Total Mjini 8 4 12 0 0 0 2 1 15 Magharibi A 5 1 6 0 0 0 0 0 6 Magharibi B 6 4 10 0 0 0 0 0 10 Waste Kaskazini A 10 3 13 1 0 0 0 0 14 genera Kaskazini B 10 3 13 0 0 0 0 0 13 tion Kati 21 4 25 0 0 0 0 0 25 Kusini 9 2 11 1 0 0 0 0 12 per Unguja 69 21 90 2 0 0 2 1 95 capita Wete 17 3 20 0 1 0 0 0 21 Michewene 12 3 15 1 0 0 0 0 16 Chake Chake 8 3 11 1 1 0 0 0 13 B Mkoani 13 4 17 0 0 1 0 0 18 ased Pemba 50 13 63 2 2 1 0 0 68 Zanzibar 119 34 153 4 2 1 2 1 163 on availab le waste generation figures and surveys and studies in countries/areas with similar characteristics the following solid waste generation figures for the Zanzibar archipelago are applied.

Please keep in mind that no actual study has been performed on the actual generation rates – as per the data in the waste study done in 2018 provided by the Revolutionary Government of Zanzibar. While the figures might be correct they could also vary with up to 30% given the specific make up of the economy of the islands

1. Applied waste generation rate figures for Zanzibar archipelago Zanzibar Archipelago Kg/cap/day Period 2018 2028 2038 . ZUMC 0.75 0.85 0.9 . West A + West B 0.5 0.55 0.6 . Urban areas Pemba 0.4 0.45 0.5 . Rural areas (Unguja, Pemba) 0.25 0.30 0.3

2. Waste generation forecasts

Taken into account the above waste generation figures per capita and the population growth forecasts, the following solid waste generation figures show:

Solid Waste generation forecasts Zanzibar archipelago 2018-2038:

Solid Waste generation Unguja and 2018 2028 2038 % Pemba Tons/year Tons/year Tons/year Unguja Urban districts Urban 132,515 181,371 226,871 56.0% (ZMC, West A+B) Rural 14,027 18,451 22,803 5.6% Unguja Rural districts Urban 5,144 7,244 9,553 2.4% (North A+B, Central, South) Rural 29,898 40,869 51,739 12.8% Pemba (4) districts Urban 18,769 23,131 27,463 6.8% Rural 38,360 50,589 66,727 16.5% Total Unguja + Pemba Urban 156,428 211,746 263,887 65.1% Rural 82,285 109,909 141,269 34.9% Total 238,712 321,655 405,156 100.0%

Although the figures above are correct in terms of average waste generation as applied to the population there is a large category of waste which is currently not being counted as generated 13 | Page

waste, although it has a large impact over the overall quantity of waste which needs to be processed and it creates a bad impression over the tourists.

The waste under discussion is the waste generated by the stripping of the trees and wood poles for construction and the waste generated by the dried or rotten palm leaves. This type of waste is usually dumped on the processing site or on the sides of the road. There is no evaluation of the quantity of such waste being generated on the islands, however this type of waste needs to be inserted in the calculations for processed waste, because it is highly suitable for the solution being proposed further on.

In addition the hotels/resorts, in the Unguja rural districts, generate significant volumes of solid waste, waste, which is currently mostly burnt or dumped in the fields or on the side of the roads. To little of the waste generated by the hotels is being dumped in the waste dump.

Solid Waste generation forecasts Tourism sector Zanzibar

Waste generation hotels/resorts Rural districts No. Tourists/year 2018 400,000 (Estimated 5% growth/year) 2028 600,000 No. Days stay (average) 8 Total no. Days/year 4,800,000 % 4 rural districts 68.5% No. Days 4 rural districts 3,288,000 Waste generation (kg/day) 1.5-2.0 kg/day Total tons /year 5,754 Tons/day 15.8 Similar of town population 31,967

The most important HZW stream seems is the Health Care Risk Wastes (HCRW) stream, generated at the Health Care Facilities in the Zanzibar archipelago. The specific types of HCRW are many and at present the waste streams are not properly handled and disposed and present a serious danger to the public health and environment. Several options and technologies exist to manage, treat and safely dispose these HCRW streams (separation/protective equipment, incineration /small scale - advanced, microwaving, autoclaving, burial pits/sharps - placenta, encapsulation etc.).

Although there is legislation framework for HCW management contained in the Public and Environment Health Act, No 11 of 2012, as well as guidance for sustainable waste handling and disposal of hazardous waste in the Zanzibar Policies strategies and plans are also available and the (draft) ZHCWM Plan of the MoH (April 2018) lists 19 policies relevant to proper management of HCW, however the implementation is unclear.

Hazardous Wastes (HZW) are wastes or a combination of wastes that pose a substantial present or potential hazard to humans or other living organisms or natural resources. The key risk of HZW is that it is potentially dangerous to living beings and/or the environment, particularly when handled, transported or disposed of in an unsafe manner.

Most HZW streams are produced in the manufacturing of half products, or products for consumption. Currently many environmental and health problems in developing countries, including Zanzibar, are associated with occurrence and mismanagement of HZW. Hazardous waste sources include households, commercial entities/shops, industries, institutional establishments, research laboratories, mining sites, mineral processing sites, agricultural facilities, and hospitals/health facilities

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No studies exist in Zanzibar (and limited studies in Tanzania mainland) to determine the composition and characteristics of the country ’ s HZW streams. However no (process) industries exist in Zanzibar that are generating industrial HZW; only limited volumes of low hazardous wastes are being generated by households and commercial sector (small enterprises, shops). These HZW fractions (batteries, solvents, paints, fuels, pesticides, asbestos, used oils, electrical/electronic wastes etc.) usually account for a small fraction of the municipal waste.

Regarding the quantities of generated HCRW the standard quantity of generated waste for every bed is of around 0,75 kg of waste per day, which means around 274 kg of waste per year per bed. Given the fact that the number of hospital beds in the islands is of around 3000, the total health care waste is of about 822,000 kg per year.

The treatment and elimination of such waste should be analysed separately in the future feasibility study with a view of implementing an unified solution which would address its elimination while having sufficient revenue streams from such elimination in order to maintain functional the installation used for elimination, the goal being that such activity would be a an economic feasible one and not one subsidized by the state.

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EXISTING SWM INFRASTRUCTURES AND EQUIPMENT

The SWM situation, as was determined in 2012 shows the following data.

Percentage by Region and Type of Refuse Disposal, 2012 Census

Main Means of Solid Waste Handling (%) Region Regularly Collected Irregularly collected Burnt Dumping Roadside Buried Other Mjini Magharibi 22.9 4.4 18.1 0.7 8.3 45.6 Unguja Kaskazini 0.5 0.1 26.1 0.4 6.2 66.6 Unguja Kusini 0.03 0.8 23.1 0.2 6.0 69.9 Pemba Kaskazini 0.7 0.3 7.1 0.3 3.6 88.0 Pemba Kusini 2.5 0.7 11,7 0.6 3.6 80.9

Although the data presented above is some 8 year old, the collection degree for the entire archipelago which was taken under consideration is of 20% overall. There is a slight possibility that this collection degree is lower, however this will be determined following the construction of the facility.

Unguja urban areas (ZUMC, West A and West B districts) ZUMC

At present some basic SWM collection-transport equipment and infrastructure is only available and operational in the ZUMC areas. The households, restaurants, shops and small workshops and garages place their solid waste outside their door.

Small groups of collectors pick up the waste by handcarts, following their individual schedule. The waste collectors get paid by the waste producers and don’t receive remuneration by the municipality. It is expected that the amount of fees collected will be enough to cover the cost of the collection and partly the cost for the transport to the landfill.

The collected material is transported to the designated skip container. While moving the waste manually from the pushcart into the skip, recycling takes place by sorting out all items of a commercial interest (plastic, cardboard, metals etc.).

At present (2020) the following transport equipment is available for the ZUMC SWM services:

West A, West B districts

Compared to the collection/transport system with the skip containers and trucks in the ZUMC area, the waste collection/transport system in the West A and West B districts, with the many open dump/collection sites and only a few (2-3) hand loaded tipper trucks is significantly worse, resulting in much lesser volumes of waste collected and transported to the Kibele landfill.

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District Skips Skip trucks Tipper/flatbed trucks Monthly trips to Kibele Tons (est.) West A 0 0 2 70 150 West B 0 0 3 165 350

In the beginning of 2018 the waste collection in the West A and B districts was re-organized, i.e. since March 2018, groups of young and unemployed people are being assigned with the task of collecting the waste at Shehia level. Wheelbarrows to collection points will transport the collected waste. The waste collectors extract all recyclable materials of interest. From these collection/dump sites onwards, the municipality has to take care of final disposal of the waste. At present there exist no waste management plans for the respective districts, apart from requests for extra transport equipment.

Unguja rural areas (North A and North B, Central, South districts)

In the Unguja North and South regions no formal SWM systems or practices are in place, i.e. there doesn’t exist any form of regular collection services and the waste is not disposed at any organized or controlled landfill The households in the rural villages dump their wastes on certain (small) areas in their neighbourhoods and the waste is than removed by a council owned tipper truck and disposed/dumped in the district designated dump site area. The truck is also used for other transport purposes in the district as well.

At present no youth groups are yet active in the rural districts. No SWM data are separately recorded, or known, and no separate district council budget for waste management exists.

However in In the Unguja rural districts there is a high concentration of hotels and resorts along the various coastlines (about 323, i.e. 68%) of all hotels/resorts on the island.

Districts Unguja No. hotels % total Kati/ Central 33 7.0 % Kaskazini /North A 112 23.7 % Kaskazini /North B 24 5.1 % Kusini /South 154 32.6 %

The Commission of Tourism expected for 2020 about 400,000 tourists visits, with an average stay of about 8 days. This adds up to about 3,200,000 tourist days per year. For the 4 rural districts this will be about 2,175,000 tourist days. There is however a huge impact of the COVID 19 epidemic on the number of arrivals, impact which will be quantified at the end of 2020. Assuming a waste generation of 1.5-2.0 kg /tourist day this does result in an annual generated waste tonnage of about 3.800 ton; equal to an urban area of about 21,000 people. In the coming years this figure will annually increase significantly, especially since the figures above show just a 50% occupancy degree at the current capacities of the hotels and not taking into consideration any new resorts and hotels.

We estimate that the occupancy degree will steadily increase up to 83% within the following 5 years to cover the entire period of the year (with the exception of the rain season), at which point we estimate that there will be an increase of the hotel capacity in the archipelago.

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Pemba districts (Mkoani, Chake-Chake, Wete, Micheweni)

As shown in the 2012 census figures the solid wastes on Pemba Island are not collected regularly, or properly disposed of. In the urban town areas some SWM services are available. The waste can be disposed on concrete slabs or in skips, located in the town area. The towns do have 1or 2, (obsolete) trucks to collect the waste and transport it to the dumpsites a few kilometers outside the towns. Recently youth groups have started a door-to-door collection.

District councils have allocated special waste dump locations/pits, where the waste can be dumped. In addition, as anywhere else in the Zanzibar archipelago, there is a chronic lack of sufficient funding for the daily O&M costs (salaries, fuel, oil, maintenance /repair) for waste collection and disposal.

Solid Waste Landfill(s)

There exist no engineered, sanitary landfills in the Zanzibar archipelago.

A new engineered/sanitary landfill is being constructed in the same area as the present Kibele dumpsite in the framework of the ZUSP project (planned commissioning at the end 2020). The main dimensions and capacities of the Kibele landfill are designed for disposal by ZMC only. The project for the redevelopment of the Kibele Landfill has already started as seen in the pictures below through a financial facility granted by World Bank.

Figure 1 – Description panel investment details Kibele landfill redevelopment Figure 2 – Ongoing works for redevelopment of Kibele Landfill.

The proposal of the principals of the project is that all collected waste to pass through the processing installation and for any organic or recyclable to be processed by the installation, while the entire mineral by products or mineral waste to be transported to the future dumpsite at Kibele, under a rigorous plan with reports submitted to the local authorities on a monthly basis. This will free any council funds currently used for collection and will also free any vehicles currently used by the councils on the islands to be used for other purposes or in the case of the specialized vehicles they can be used in the future dump site area.

Based on ZUMC data, the following total of monthly truck disposal trips are presently (2019) made to the Kibele landfill, incl. the estimated tonnage disposed.

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District No. Trips/month m3* ton* % ZUMC 1,622 16,982 5,468 91.5% WEST A 70 350 100 1.7% WEST B 165 825 330 5.5% ZANREC 26 n.a. 52 0.9% Eco balance 12 n.a. 24 0.4% total 1,895 5,974 100.0%

*estimates

These figures clearly indicate that the number of trips and tonnages disposed by West A and West B are insignificant as compared to ZUMC, and do confirm the earlier census 2012 waste management data, which indicates very low regular collection services.

Waste Minimization/ treatment activities (recycling and composting)

The present status of the waste treatment options in the Zanzibar archipelago are rather limited, and concern mainly (informal) recycling and composting activities.

Recycling

Apart from the informal removal/ reuse of scrap metals, cardboard, and other recyclables, the recycling activities concern mainly the recycling of plastic bottles. The (white/green) plastic bottles are collected by private companies, or the informal sector, and transported to the recycling plants, Two local private companies are active in the plastic recycling activities. Both companies each recycle about 40-45 % of the collected plastic bottles on Unguja. The plastic bottles are stripped, cleaned, shredded and packed for transport by truck and selling in the Tanzania mainland/Dar Es Salaam. It was stated that the companies operate with marginal financial results and don’t have the financial capacity to expand, or invest in the improvement of their activities.

Composting

Concerning the composting activities 4 initiatives were identified:

1) Shaurimoyo pilot project, by CSE (Centre for Science and Environment), New Delhi India. In this pilot study project about 200 households are involved, who separate their waste into wet biodegradable waste and dry waste. The separated organic waste is transported, by tipper truck to the composting site, about 2 km away. The waste collection is done on a door-to-door basis and that household contributes 10,000 Tsh per month, while additional funds are to be generated by the sale of the compost products and the recyclables.

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2) ZANREC private company.

ZANREC collects waste from about 50-60 hotels at the East coast of Unguja, and transport the collected waste to their transfer area in Matemwe. Here, among others, the organic waste is separated and composted. In meetings with ZANREC it was mentioned that they would stop their composting activities because of quality problems and insufficient sales revenues. For the waste collection services ZANREC pays a license fee to the district authorities, and pays a disposal fee per truck for disposing the waste at the Kibele landfill

3) Permaculture Institute Zanzibar.

At FTSC (Fumba Town Service Center) various ecological activities take place, among other solid waste composting. The waste is collected by truck from residential houses and restaurants mainly in the West B region. The Permaculture Institute also promotes composting and give courses/seminars about composting.

4) Pemba Foundation/Zarepo. This NGO initiated a composting activity on Pemba in the Chake-Chake area in 2014/15, but the project stalled due to lack of co-operation by the local authorities

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FINANCIAL SWM SITUATION

SWM Revenues

The Solid Waste sector in Zanzibar is in principle financed mainly from three sources:

1) Tariffs and revenues from users 2) From Municipal Budgets 3) From Central Budget

The tariff revenues usually go directly into the municipal treasury, and there is no ring fencing or earmarking specifically for SWM operations. The tariffs seem not to have changed during the past years and were fixed in 2006. There exist municipal budget lines for the environmental departments, and financial funds for SWM operations are allocated within these environmental budgets.

These funds cover mostly operational expenses, mainly fuel and maintenance for vehicles. Staff costs for Shehia based collection are paid from the municipal budgets. Staff costs for permanently/regularly-employed staff are directly paid as subsidies by the central government.

Revenue billing and collection in urban areas is done manual on a monthly basis. Customers have to pay in cash either to a collector, or at a cash desk at the municipality. Enforcement of payments is weak, and not practiced on a wide scale. Hence, collection rates are low, reportedly at around 50 %, or less. As there exist no formal SWM services in rural areas, also no fees are collected from private households and commercial outlets.

Regarding the above, the study will recommend for any company implementing such a project to work with the local authorities in order to set up a monthly payment scheme for every individual or council based on the quantity of generated waste in the specific area and the costs involved into collecting the said waste.

The reason for which we see this being treated at council level rather than at individual level at least for the first 5 years is because we aim to educate all the individuals and work with the councils towards the goal of collecting all the waste generated on the island, including all the stuff which is currently not regarded as waste such as pieces of wood or leaves or dead vegetation which is currently dropped on the sides of the road and are not taken under consideration in any study.

SWM Costs

The SWM budgets are incorporated in the environmental budgets, and these budgets include also other items such as sanitation or street cleaning. Hence it is difficult to clearly allocate the specific SWM operational costs, also staff costs are not allocated directly to the SWM operations.

The major SWM cost components, apart from the staff and workers salary costs, are: • Fuel costs Fuel is manly consumed by the trucks used for solid waste transportation. Fuel is by far the most important cost position. According to information provided by the municipalities it accounts for more than 90 % of all costs. • Truck Maintenance costs

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A minor part of expenses can be allocated to truck repair and maintenance. Most municipalities report that they are seriously under-equipped with (obsolete) trucks and need urgent investments. • Other costs This includes mainly staff costs for community based SWM collection activities.

The financial SWM situation varies in urban and rural areas, and also for each municipality, but it may be concluded that the budgets / incomes from the 3 revenue sources are clearly insufficient to adequately cover the operational SWM costs (i.e. fuel, maintenance).

A short SWOT analysis of the financial SWM situation is given below. Strengths Weaknesses • Solid revenue potential (Urban areas) • No separation of collection and landfilling costs • Donor and institutional support • No SWM billing/invoicing structures • Room for tariff increases / differentiation • Unusual way of SWM accounting for contributions from the City. Opportunities Threats • Untapped revenue potential from not registered • Low economic status of households customers • Lack of institutional / financial SWM unit • Investment program to reaching higher degree of • Limited space for significant tariff adjustments cost coverage

It is without doubt that the lack of financial resources is the main cause of the poor and inadequate SWM practices and that the revenues generated from the served households, commercial sector and institutions, or from other sources, are very low and should considerable be increased.

At present the collected revenues, don’t come close to even cover the SWM operational and maintenance costs, moreover when taken into account that the staff costs are being paid from the general budget.

SWM PPP-PSP Environment

The RoGZ adopted a policy of Public-Private Partnerships (PPP), approved in August 2014, as a tool for the provision of improved public services and public infrastructure based on the principle of better value for money, appropriate risk transfer and management and taking advantage of private sector innovations, however given the current situation on the island in terms of available financing a straight up Privately led project, which would assume contractually a series of objectives within a set time period would be the best solution, with the sole public involvement being: the allocation of land parcels for the project, the support for the power take over agreement and the general agreement for the takeover of all the waste generated by the archipelago.

A dedicated PPP unit does exist within the Ministry of Finance & Planning. It was set up in 2012 and is active since 2015. There are 13 PPP projects in the pipeline; one has already advanced to the stage of the PPP feasibility study. SWM PPP options are yet not covered in the PPP project pipeline.

Public Awareness – Communication

Increased cooperation between District Authorities and stakeholders could substantially reduce problems that Municipalities/Urban local Authorities are encountering in SWM operations. Communities, which have a share in SWM ownership, may also be more willing to pay their share of the

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waste collection fees. It has been observed that District/Local Authorities do not find it easy to cooperate or communities, and similar problems exist with the commercial sector, both formal and informal. Local businesses owners dump their waste outside of official disposal sites.

A survey carried out on city-wide perception survey concerning ZUMC services (June 2014), indicates that there is some communication going on between stakeholders and ZUMC, but a majority of respondents have the opinion that the existing communication is not adequate.

From the stakeholders consultation and a SWOT analysis the following main challenges came forward: •The present level of communication and cooperation between District Local Authorities and communities (households, commercial business etc.) can be assessed as low. •People have negative attitudes towards Council authorities; they feel that they are paying for SWM services that are inadequate, or unsatisfactory. •Communication is an important tool to ensure that the recipients of SWM services are satisfied with the services delivery. •The Local Government Authorities have yet no proper platforms in place to communicate with stakeholders and population, on SWM related, or other public services. •Various NGOs are active to assist/train LGAs, including public awareness activities in the field of waste management. •Local leaders and the RGoZ are supporting youth groups’ involvement in door-to-door waste collection. Also small private companies are ready to participate in the waste collection system. •A low level of awareness concerning the effects of waste littering on their environment and public health can be reduced if an education campaign is properly organized. •Awareness and attitude concerning waste minimization options are undeveloped

The main contributing factors/causes can be summarized as follows: •Lack of a National SWM Public Awareness Communication program and activities. •Insufficient capacity of LGAs (Local Government Authorities) to promote and facilitate SWM Public Awareness, Communication and

Education programs •Lack of appropriate measures by all LGAs that enables households and other waste generators to understand the importance of paying for waste collection services •People are not aware of their responsibilities as producers of waste and actors on waste reduction

The main actors in the Public Awareness and Communication are:

1. Central and Local Authorities, concerning among other:

Solid Waste Management (Collection, transfer/transport, treatment, recycling, disposal) Communication with Communities on SWM practices Awareness raising about the importance of proper waste collection and disposal Awareness raising on enforcement of environment and SWM (by-laws) Awareness raising on collecting revenues from solid waste generators

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2. Non-Government parties (NGO/CBO,’s, Private SWM operators,)

Role in specific SWM activities (collection, transport, recycling/composting, disposal) SWM PA programs and awareness rising in their communities about the importance of proper waste collection and disposal.

The main PA focus and interests should be:

Community awareness: To make people living and working within urban areas aware and provide information regarding SWM services. Community participation/involvement: To stimulate/assist communities is to participate and support SWM services improvement initiatives if adequately involved. Payment of User fees: To sensitize communities (household, shops, and commercial business) to pay for the SWM services. Local government Authorities: to raise awareness and arrange/stimulate participation of local communities in their SWM services.

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POWER MANAGEMENT DATA

Zanzibar Electricity Corporation (ZECO) is a state owned utility firm that provides transmission and distribution service of electricity in the Zanzibar Archipelago. The firm was incorporated in 2006 as the successor of the State Fuel and Power Corporation and is wholly owned by the Revolutionary Government of Zanzibar.

Electricity in Zanzibar

Electricity in Zanzibar dates back to the early 1900s. In 1908, the first coal-fired generator was installed on the island to power Stone Town. In 1954 the coal plants were abandoned and new diesel generators were installed by the British East Africa Company. In 1980 the main island of Unguja was connected to the Tanzanian National Grid via a 132kV, 45MW sub-marine cable and the diesel generators were decommissioned. In 2012, a new cable with a capacity of 100MWh was laid and the previous 45 MWh cable was decommissioned.

Electricity in Pemba The first power plant on the island of Pemba was commissioned in 1958 and was called the Tibirinzi power station. Over the years the government continued to build small diesel generators to meet the growing demand. However, in 1985 the government replaced the Tibirinzi power station and inaugurated the Wesha Power station.

The power station had three diesel generators with a total capacity of 4.5 MW. Pemba was also connected to the national grid through a submarine cable from Pangani. The 33kV, 20MW cable runs from Pangani, to Tanga to Ras Mkumbuu.

ZECO is 100% wholly owned by the Revolutionary Government of Zanzibar, under the umbrella of the Ministry of Land, Housing, Water and Energy of Zanzibar. The Union government or mainland government does not have any ownership or executive control in the company. A board of directors directly appointed by the ministry controls the company.

As per the data available on www.zanzibar-energy.com the average quantity of import of energy from Tanzania by ZECO (as per the data available up to December 2016) reached 40.000 MWh meaning an average consumption of 55 MWh per hour for both islands, with a peak consumption point of 71 MWh.

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Now given the evolution of connections between 2015 and 2016, where in 2015 December the islands had a peak consumption point of 68 MWh with an imported quantity of almost 36.000 MWh, meaning an average consumption of 55 MWh per hour, it is safe to say that given the number of increased connections on the islands for the population and developing business generated an yearly increase of 5MWh in the average consumption, thus putting the consumption at the end of 2018 at 65MWh and with the possibility of reaching 100MWh within the following 10 years.

Please see below the evolution of the import and export of electricity on the islands of Unguja and Pemba between 2008 and 2016.

As it can be seen the import of electricity is growing year after year due to the increase in consumption and also due to the increase of new connections to the grid.

This situation will put a lot of stress on the existing underwater transport cable, which stands at a 132 MWh capacity and will force part of the consumption to switch to generators.

At the same time the fact that TANESCO (the mainland supplier) depends mostly on hydropower to generate its electricity, produces during the drought years a gap between the production of electricity in the country and the actual consumption.

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Given all the above and the fact that as mentioned in the beginning that only 44% of the households are currently connected to the electricity grid, we estimate that within 5aa years there will be major energy failures throughout the year.

Please see below the evolution of the number of consumers between 2008 and 2016, evolution which shows and increase of around 200% during this period, meaning an almost 25% increase each year.

As such, any proposed solution for dealing with the waste issue has to take into account at the same time the electricity issue.

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POSSIBLE SOLUTIONS WASTE DISPOSAL / POSSIBLE SOLUTIONS POWER GENERATION

Municipal solid waste (MSW), commonly known as trash or garbage and rubbish, is a waste type consisting of everyday items that are discarded by the public. "Garbage" can also refer specifically to food waste, as in a garbage disposal; the two are sometimes collected separately. In the European Union, the semantic definition is 'mixed municipal waste,' given waste code 20 03 01 in the European Waste Catalog. Although the waste may originate from a number of sources that has nothing to do with a municipality, the traditional role of municipalities in collecting and managing these kinds of waste have produced the particular etymology 'municipal.'

The composition of municipal solid waste varies greatly from municipality to municipality, and it changes significantly with time. In municipalities, which have a well-developed waste recycling system, the waste stream mainly consists of intractable wastes such as plastic film and non-recyclable packaging materials. At the start of the 20th century, the majority of domestic waste (53%) in the UK consisted of coal ash from open fires.

In developed areas without significant recycling activity it predominantly includes food wastes, market wastes, yard wastes, plastic containers and product packaging materials, and other miscellaneous solid wastes from residential, commercial, institutional, and industrial sources.

Most definitions of municipal solid waste do not include industrial wastes, agricultural wastes, medical waste, radioactive waste or sewage sludge. Waste collection is performed by the municipality within a given area. The term residual waste relates to waste left from household sources containing materials that have not been separated out or sent for processing.

Waste can be classified in several ways but the following list represents a typical classification: • Biodegradable waste: food and kitchen waste, green waste, paper (most can be recycled although some difficult to compost plant material may be excluded) • Recyclable materials: paper, cardboard, glass, bottles, jars, tin cans, aluminium cans, aluminium foil, metals, certain plastics, fabrics, clothes, tires, batteries, etc. • Inert waste: construction and demolition waste, dirt, rocks, debris • Electrical and electronic waste (WEEE) - electrical appliances, light bulbs, washing machines, TVs, computers, screens, mobile phones, alarm clocks, watches, etc. • Composite wastes: waste clothing, Tetra Packs, waste plastics such as toys • Hazardous waste including most paints, chemicals, tires, batteries, light bulbs, electrical appliances, fluorescent lamps, aerosol spray cans, and fertilizers • Toxic waste including pesticides, herbicides, and fungicides • Biomedical waste, expired pharmaceutical drugs, etc.

Components of solid waste management

The municipal solid waste industry has four components: recycling, composting, disposal, and waste- to- energy via incineration There is no single approach that can be applied to the management of all waste streams, therefore the Environmental Protection Agency, a U.S. federal government agency, developed a hierarchy ranking strategy for municipal solid waste. The Waste Management Hierarchy is made up of four levels ordered from most preferred to least preferred methods based on

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their environmental soundness: Source reduction and reuse; recycling or composting; energy recovery; treatment and disposal.

Collection The functional element of collection includes not only the gathering of solid waste and recyclable materials, but also the transport of these materials, after collection, to the location where the collection vehicle is emptied. This location may be a materials processing facility, a transfer station or a landfill disposal site.

Waste handling and separation, storage and processing at the source. Waste handling and separation involves activities associated with waste management until the waste is placed in storage containers for collection. Handling also encompasses the movement of loaded containers to the point of collection. Separating different types of waste components is an important step in the handling and storage of solid waste at the source of collection.

Segregation and processing and transformation of solid wastes The types of means and facilities that are now used for the recovery of waste materials that have been separated at the source include curbside collection, drop-off and buy-back centres. The separation and processing of wastes that have been separated at the source and the separation of commingled wastes usually occur at a materials recovery facility, transfer stations, combustion facilities and treatment plants.

Transfer and transport This element involves two main steps. First, the waste is transferred from a smaller collection vehicle to larger transport equipment. The waste is then transported, usually over long distances, to a processing or disposal site.

Disposal Today, the disposal of wastes by land filling or land spreading is the ultimate fate of all solid wastes, whether they are residential wastes collected and transported directly to a landfill site, residual materials from materials recovery facilities (MRFs), residue from the combustion of solid waste, compost, or other substances from various solid waste processing facilities. A modern sanitary landfill is not a dump; it is an engineered facility used for disposing of solid wastes on land without creating nuisances or hazards to public health or safety, such as the problems of insects and the contamination of ground water.

Reusing In the recent years environmental organizations, such as Freegle or Freecycle Network, have been gaining popularity for their online reuse networks. These networks provide a worldwide online registry of unwanted items that would otherwise be thrown away, for individuals and nonprofits to reuse or recycle. Therefore, this free Internet-based service reduces landfill pollution and promotes the gift economy.

Landfills Landfills are created by land dumping. Land dumping methods vary, most commonly it involves the mass dumping of waste into a designated area, usually a hole or side hill. After the waste is dumped, it is then compacted by large machines. When the dumping cell is full, it is then "sealed" with a plastic

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sheet and covered in several feet of dirt. Usually landfills are surrounded by large walls or fences hiding the mounds of debris. Large amounts of chemical odor eliminating agent are sprayed in the air surrounding landfills to hide the evidence of the rotting waste inside the plant.

Energy generation Municipal solid waste can be used to generate energy. Several technologies have been developed that make the processing of MSW for energy generation cleaner and more economical than ever before, including landfill gas capture, combustion, pyrolysis, gasification, and plasma arc gasification.

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WASTE TO ENERGY TECHNOLOGY DATA

Waste-to-energy (WTE) or energy-from-waste (EFW) is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the processing of waste into a fuel source. WTE is a form of energy recovery. Most WTE processes generate electricity and/or heat directly through combustion, or produce a combustible fuel commodity, such as methane, methanol, ethanol or synthetic fuels. Gasification and pyrolysis processes have been known and used for centuries and for coal as early as the 18th century. Development technologies for processing residual solid mixed waste has only become a focus of attention in recent years stimulated by the search for more efficient energy recovery.

Incineration Incineration, the combustion of organic material such as waste with energy recovery, is the most common WTE implementation. All new WTE plants in OECD countries incinerating waste (residual MSW, commercial, industrial or RDF) must meet strict emission standards, including those on nitrogen oxides (NOx), sulphur dioxide (SO2), heavy metals and dioxins. Hence, modern incineration plants are vastly different from old types, some of which neither recovered energy nor materials. Modern incinerators reduce the volume of the original waste by 95-96 percent, depending upon composition and degree of recovery of materials such as metals from the ash for recycling.

Incinerators may emit fine particulate, heavy metals, trace dioxin and acid gas, even though these emissions are relatively low from modern incinerators. Other concerns include proper management of residues: toxic fly ash, which must be handled in hazardous waste disposal installation as well as incinerator bottom ash (IBA), which must be reused properly. Critics argue that incinerators destroy valuable resources and they may reduce incentives for recycling. The question, however, is an open one, as European countries which recycle the most (up to 70%) also incinerate to avoid landfilling. Incinerators have electric efficiencies of 14-28%. In order to avoid losing the rest of the energy, it can be used for e.g. district heating (cogeneration). The total efficiencies of cogeneration incinerators are typically higher than 80% (based on the lower heating value of the waste). The method of incineration to convert municipal solid waste (MSW) is a relatively old method of WTE generation. Incineration generally entails burning waste (residual MSW, commercial, industrial and RDF) to boil water, which powers steam generators that generate electric energy and heat to be used in homes, businesses, institutions and industries. One problem associated is the potential for pollutants to enter the atmosphere with the flue gases from the boiler. These pollutants can be acidic and in the 1980s were reported to cause environmental degradation by turning rain into acid rain. Since then, the industry has removed this problem by the use of lime scrubbers and electro- static precipitators on smokestacks. By passing the smoke through the basic lime scrubbers, any acids that might be in the smoke are neutralized which prevents the acid from reaching the atmosphere and hurting the environment. Many other devices, such as fabric filters, reactors, and catalysts destroy or capture other regulated pollutants. According to the New York Times, modern incineration plants are so clean that "many times more dioxin is now released from home fireplaces and backyard barbecues than from incineration.

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Other There are a number of other new and emerging technologies that are able to produce energy from waste and other fuels without direct combustion. Many of these technologies have the potential to produce more electric power from the same amount of fuel than would be possible by direct combustion. This is mainly due to the separation of corrosive components (ash) from the converted fuel, thereby allowing higher combustion temperatures in e.g. boilers, gas turbines, internal combustion engines, fuel cells. Some are able to efficiently convert the energy into liquid or gaseous fuels:

Thermal technologies: • Gasification: produces combustible gas, hydrogen, synthetic fuels • Thermal depolymerization: produces synthetic crude oil, which can be further refined • Pyrolysis: produces combustible tar/bio oil and chars • Plasma arc gasification or plasma gasification process (PGP): produces rich syngas including hydrogen and carbon monoxide usable for fuel cells or generating electricity to drive the plasma arch, usable vitrified silicate and metal ingots, salt and sulphur Landfill Gas Collection

Non-thermal technologies: • Anaerobic digestion: Biogas rich in methane • Fermentation production: examples are ethanol, lactic acid, hydrogen • Mechanical biological treatment (MBT) • MBT + Anaerobic digestion • MBT to Refuse derived fuel

Global developments

During the 2001–2007 period, the waste-to-energy capacity increased by about four million metric tons per year. Japan and China each built several plants based on direct smelting or on fluidized bed combustion of solid waste. In China there are about 434 waste-to-energy plants in early 2016. Japan is the largest user in thermal treatment of municipal solid waste in the world, with 40 million tons. Some of the newest plants use stoker technology and others use the advanced oxygen enrichment technology. Several treatment plants exist worldwide using relatively novel processes such as direct smelting, the Ebara fluidization process and the Thermoselect JFE gasification and melting technology process. In India its first energy bioscience centre was developed to reduce the country’s green house gases and its dependency on fossil fuel. As of June 2014, Indonesia had a total of 93.5 MW installed capacity of waste- to-energy, with a pipeline of projects in different preparation phases together amounting to another 373MW of capacity.

Gasification

Gasification is a process that converts organic or fossil fuel-based carbonaceous materials into carbon monoxide, hydrogen and carbon dioxide. This is achieved by reacting the material at high temperatures (>700 °C), without combustion, with a controlled amount of oxygen and/or steam. The resulting gas mixture is called syngas (from synthesis gas) or producer gas and is itself a fuel. The power derived from gasification and combustion of the resultant gas is considered to be a source of renewable energy if the gasified compounds were obtained from biomass.

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The advantage of gasification is that using the syngas (synthesis gas H2/CO) is potentially more efficient than direct combustion of the original fuel because it can be combusted at higher temperatures or even in fuel cells, so that the thermodynamic upper limit to the efficiency defined by Carnot's rule is higher or (in case of fuel cells) not applicable.

Syngas may be burned directly in gas engines, used to produce methanol and hydrogen, or converted via the Fischer–Tropsch process into synthetic fuel. Gasification can also begin with material, which would otherwise have been disposed of such as biodegradable waste. In addition, the high- temperature process refines out corrosive ash elements such as chloride and potassium, allowing clean gas production from otherwise problematic fuels. Gasification of fossil fuels is currently widely used on industrial scales to generate electricity

Figure 3 Adler Diplomat 3 with gas generator (1941)

The process of producing energy using the gasification method has been in use for more than 180 years. In the early time coal and peat were used to power these plants. Initially developed to produce town gas for lighting and cooking in the 1800s, this was replaced by electricity and natural gas, it was also used in blast furnaces but the bigger role was played in the production of synthetic chemicals where it has been in use since the 1920s. During both world wars, especially the World War II, the need for fuel produced by gasification reemerged due to the shortage of petroleum. Wood gas generators, called Gasogene or Gazogène, were used to power motor vehicles in Europe. By 1945 there were trucks, buses and agricultural machines that were powered by gasification. It is estimated that there were close to 9,000,000 vehicles running on producer gas all over the world.

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Figure 4 Main gasifier types

Several types of gasifiers are currently available for commercial use: counter-current fixed bed, co- current fixed bed, fluidized bed, entrained flow, plasma, and free radical.

Feedstock – supply of raw material to the gasifier

There are a large number of different feedstock types for use in a gasifier, each with different characteristics, including size, shape, bulk density, moisture content, energy content, chemical composition, ash fusion characteristics, and homogeneity of all these properties. Coal and petroleum coke are used as primary feedstock for many large gasification plants worldwide. Additionally, a variety of biomass and waste-derived feedstock can be gasified, with wood pellets and chips, waste wood, plastics and aluminium, Municipal Solid Waste (MSW), Refuse-derived fuel (RDF), agricultural and industrial wastes, sewage sludge, switch grass, discarded seed corn, corn stover and other crop residues all being used.

Waste disposal

Figure 5 HTCW reactor, one of several proposed waste gasification processes.

Waste gasification has several advantages over incineration:

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• The necessary extensive flue gas cleaning may be performed on the syngas instead of the much larger volume of flue gas after combustion. • Electric power may be generated in engines and gas turbines, which are much cheaper and more efficient than the steam cycle used in incineration. Even fuel cells may potentially be used, but these have rather severe requirements regarding the purity of the gas. • Chemical processing (Gas to liquids) of the syngas may produce other synthetic fuels instead of electricity. • Some gasification processes treat ash containing heavy metals at very high temperatures so that it is released in a glassy and chemically stable form.

A major challenge for waste gasification technologies is to reach an acceptable (positive) gross electric efficiency. The high efficiency of converting syngas to electric power is counteracted by significant power consumption in the waste pre-processing, the consumption of large amounts of pure oxygen (which is often used as gasification agent), and gas cleaning. Another challenge becoming apparent when implementing the processes in real life is to obtain long service intervals in the plants, so that it is not necessary to close down the plant every few months for cleaning the reactor.

Heat Gasifiers offer a flexible option for thermal applications, as they can be retrofitted into existing gas fuelled devices such as ovens, furnaces, boilers, etc., where syngas may replace fossil fuels. Heating values of syngas are generally around 4–10 MJ/m3. Electricity Currently Industrial-scale gasification is primarily used to produce electricity from fossil fuels such as coal, where the syngas is burned in a gas turbine. Gasification is also used industrially in the production of electricity, ammonia and liquid fuels (oil) using Integrated Gasification Combined Cycles (IGCC), with the possibility of producing methane and hydrogen for fuel cells. IGCC is also a more efficient method of CO2 capture as compared to conventional technologies. IGCC demonstration plants have been operating since the early 1970s and some of the plants constructed in the 1990s are now entering commercial service.

Combined heat and power In small business and building applications, where the wood source is sustainable, 250–1000 kWe and new zero carbon biomass gasification plants have been installed in Europe that produce tar free syngas from wood and burn it in reciprocating engines connected to a generator with heat recovery. This type of plant is often referred to as a wood biomass CHP unit but is a plant with seven different processes: biomass processing, fuel delivery, gasification, gas cleaning, waste disposal, electricity generation and heat recovery.

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INTEGRATED PLAN – SOLID WASTE MANAGEMENT

The proposal detailed within this document deals with the complete overhaul of the SWM in the Zanzibar archipelago, namely on the island of Unguja which generates around 80% of all waste in the archipelago. The project deals with several investment main points, each of which has as purpose the coverage of an area of the archipelago with the view towards an integrated SWM strategy.

The proposal which fits, in the opinion of the authors of the current study, best the existing situation consists of the build out of an integrated facility for the processing of all organic waste generated by the island of Unguja into two usable by products: electricity and inert slag. This will be achieved via a Waste to Energy facility, which will be developed based on a new technology which takes the organic waste and turns it into a synthetic gas to be further used to generate electricity while the remaining inert slag resulting from the process can be used as a basis for road construction.

The project has a single main purpose and that is the development of a facility capable of processing the waste generated by the Unguja island into a usable by-product without any generation of pollutants or any negative impact whatsoever over the environment, by-product which would later be used for generation of electricity.

The project to be developed following the completion of the current feasibility study and the allocation of the required resources will consist of several key components each of them separated on various activities as follows:

A. Waste collection and transportation B. Waste sorting, processing and Power Generation

Waste collection process and transportation.

This deals with all the fixed and mobile collection points plus all the equipment used within these collection points whether this equipment are collection trucks or waste bins and all the associated paraphernalia.

This will consist of the following: - Collection Intermediary Points along Unguja Island based on estimated SWM per each district - Collection Vehicles in Unguja Island – estimated 10 trucks - Collection fixed points Unguja Island - Large waste bins Unguja Island

Although the Zanzibar archipelago consist of two main islands Unguja and Pemba, the study will deal solely with the island of Unguja since this one is responsible for around 80% of the generated waste in the archipelago due to the size of the population and of the tourism trade. Also the lacking infrastructure on Pemba island makes it impossible to build a facility such as the one proposed in the current study.

At the same time there are several logistics issues with regards to the existence of usable port facilities on the island of Pemba, facilities that are required for the set up of a waste processing facility.

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The collection and transportation of waste will be guided as per the population density and the existence of social and/or government entities and the existence of private businesses, essentially the density of waste generation entities in each area.

As such, public collection points will have to be placed anywhere on the island there is feasible to place such a point, with the aim of having at least 50 collection points on the island within three years from the start of the project. The collection points will be fitted with collection bins by the project company as soon as they are established from the location point of view alongside the local government These collection points will have collection bins separated per the type of waste to be collected inside each: recyclables (plastic, paper, metal), organic (food, leather, wood, etc.), mineral (ash, stone, sand), medical/hazardous (oil, medicines, bandages, medical waste). At the same time the number of bins and their capacity and type will have to be determined according to the type of location and the type of generated waste.

Figure 6 Possible type of fixed collection point with an overall capacity of 4 cubic meters (4 tons).

As such following the start of the implementation of the project, the project owners will work closely with the local councils, The Ministry of Education, The Ministry of Health and the Public Administration to determine the best placement for such collection points, the number and type of waste bins to be placed, and to be allocated spaces within each objective for the installation of such collection points.

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SOLID, LIQUID, MEDICAL AND DANGEROUS WASTE TRANSPORTATION PLAN

The vehicles for the collection of the waste for Unguja Island will be part of a central hub for the island, hub to be located within the central part of the island, specifically in Dunga area. The vehicles will have as main purpose the collection of waste from the collection points throughout the island and from the private commercial generators of waste such as hotels and/or factories. An important point to be made is that until the facility is fully operational, the waste collected by the trucks operated by the project company will be stored at the waste dump at Kibele. At the moment the facility will be fully operational, the waste will be transferred directly to the facility itself and the waste dump at Kibele will be used solely for construction waste which can not be processed by the facility itself.

There will be one type of vehicles: 10 ton waste collection vehicles which will service the collection points, the resort hotels and the administrative /medical/ education buildings on the island. Should any further vehicles be required, more will be purchased.

Given the current estimated production of waste on the island of Unguja (which is at a level of 497 tons per day) the estimated number of waste collection vehicles is 10, which gives a total collection capacity of 300 tons per day with three trips for each truck per day. If and when the waste generation will increase the trucks can add one or two more trips since this would increase the capacity of collection to 400/500 tons per day.

These collection vehicles will also require a number of 30 employees (3 employees per vehicles, one being the driver and the other two being in charge of loading the waste in the truck). Besides these there will be several shift managers and one overall manager in charge of collection for the island.

These employees will be paid at the level of the average wage in Zanzibar (currently listed at 184 USD per month after tax), which implies a monthly cost for the investor of total of 10.422 USD per month for the collection part. Please see in the annexes all the personnel costs for the facility. At the same time the vehicles will use an average of 100 liters of fuel per day, which means a total fuel consumption of 365.000 liters per year or 365.000 USD per year. This gives each truck the ability to travel up to 400 km per day. There is an option of replacing the traditional fossil fuel powered trucks with electricity powered trucks in order to further safeguard the environment and reduce the costs, however for the purpose of this feasibility study and since no offers have been received from the producers of such vehicles up to the date of the current study, the solution proposed will be the classic one. Providing between the date of the study and the date of the implementation such a proposal will be received, it will become the preferred one. Please see below the estimated operational and investment costs for the Unguja Island collection vehicles. No of vehicles Av consumption Fuel price Total monthly cost Fuel 10 100 l/day 1 USD 30.000 USD No of vehicles Av maintenance fee Total monthly cost Maintenance 10 100 USD/month 1.000 USD

TOTAL YEARLY COST COLLECTION ACTIVITIES UNGUJA ISLAND – 372.000 USD TOTAL INVESTMENT CAPITAL COLLECTION ACTIVITIES UNGUJA ISLAND – 860.000 USD 38 | Page

Note on the above: Depending on the agreed collection schedule with the local authorities and with the type of trucks purchased, it might me feasible at that time to half the number of vehicles and double or triple the number of collection trips by working 24 hours a day. In any case the number of vehicles, which will be in use prior to the completion of the project, will be of maximum 5, given the fact that the existing average collection degree does not exceed 20% island wide.

At the same time the above mentioned numbers are calculated providing there will be a 100% collection degree on the islands – which is not the case at the date of the study and will not be the case for a few more years. As such we estimate that a maximum of 50% of the above- mentioned vehicles would be used on the island in the beginning and this number will gradually increase in the following 10 years as per the increase of the collection degree.

According to best practices in the area of waste collection, such activities need to be doubled by mechanized sweeping activities for the urban and suburban streets, however such activities will be further evaluated after a full year of collection of waste from the population and companies and a separate feasibility study.

Also the study emphasises that fact that it is necessary to start together with the local authorities a program for the cleaning of the countryside and collection of all existing waste currently dumped without any consideration over the environment. Also this collected waste will be separated into organic and mineral waste and spread between the processing facility (the organic waste) and the future dump to be built by the Revolutionary Government of Zanzibar with the aid of a grant by World Bank. (USD 10,000,000 project currently under way) – please see above.

In addition from the above there will be at least 2 vehicles which will have as sole purpose the collection of medical and dangerous waste (both liquid and solid) from hospitals and clinics with the aim of taking them to the processing installation (either the below proposed installation or a purpose built one for which a separate feasibility study will be drafted)

The intention for the development of the project is to help develop the Zanzibar islands in a waste free manner and as such the project has to work from the very beginning to educate the population to behave in a manner, which would protect the environment, and to no longer throw away or burn the waste.

Furthermore, there will be 50 fixed collection points in various towns, villages, and suburbs. The responsibility for determining the location of these collection points will fall on the local authorities which following the build out of these fixed collection points will be allocated the bins to equip them. Furthermore the company operating the project should make direct collections from other major generators of waste such as the hotels, the airport and the harbour, etc.

Out of these 50 points, 30 will be installed initially within the vicinity of the main waste generators or urban agglomerations, while 20 will be installed as per the requests of the local authorities.

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The company will not support the cost of building the fixed collection points; this being an expense the company aims to share with the local communities, since each community may elect to have its own design for such collection points.

Figure 7 Sample simple fixed collection point.

Large waste bins Unguja Island

For every major business such as a hotel or resort, or public market, for every government building, for every administrative building and for every civil service building (such as hospitals, or clinics) there will be allocated a number of large waste bins each with a capacity of 1100 liters. The quantity of bins allocated for each location will be determined as per the requirements of the administrators of said locations.

Although according to the study published at the beginning of 2019 by the Revolutionary Government of Zanzibar the waste generated by the islands reaches 238,000 tons (see below) there are some issues with the processing this waste as follows: - the average collected quantity is lower than 20%, in some areas being as low as 1% ; - there is no separation between organic and mineral waste; 40 | Page

- there is no separation between recyclable and non recyclable waste; - the study was not based on actual generated quantities, but rather on estimated quantities as compared to similar areas in the world; - the facility to be built requires 24 hours a day operation and therefore a continuous supply of waste; - the facility to be built needs to take under consideration a 100% collection degree; - the estimated amount also takes under consideration construction and mineral waste which is not fit for usage in the facility itself.

Given all the above the facility to be built needs to be able to process up to 150,000 tons per year. The idea is to be able to use the facility at 100% efficiency and generate around the clock electricity to be inserted in the electricity system, by using all the available resources of waste.

Any further increase in generated capacity above 150,000 tons per year will be handled by building additional processing installations or by changing some of the equipment installed in the premises.

We estimate that an increase of the collection degree by 10% per annum as compared to the previous year is achievable given the proposed involvement of the local communities in the increase of the collection degree.

The project will have to consist of one installation, with a capacity of processing up to 18 tons of sorted organic waste per hour and the ability of generating a minimum of 1 MWh of electricity for each 1,8 tons of processed sorted organic waste.

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Sample of Waste Bin Collection Trucks

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INTEGRATED PLAN FOR SUPPLYING ALTERNATIVE ELECTRICITY GENERATION - TECHNOLOGY AND PLANT DESCRIPTION

The waste to energy plant is designed to operate 24/7, with a short period of scheduled maintenance downtime every year.

One of the greatest tasks is to provide an entire solution for all logistic requirements. The offered concept takes care about all truck drive and loading zones, allows for enough flexibility in the waste reception area and waste bunker as well as in all other storage capacities for consumables and residues and the bottom ash management.

The plant design chosen is suited for the local requirements and surroundings. Developed to provide a clear and proven plant arrangement to meet all requirements for easy access, proper operation and economic maintenance. The plant design contains enough space and easy access for operating staff, workshops, offices and all other technical plant areas. The 3D-model together with related 2D-drawings shall ensure that interfaces, pipe routing, and the overall plant situation including the civil elements are fully considered.

The incinerator block is arranged from north to south to the passing-by road with its combustion and steam production process as well as the flue gas treatment facilities located inside the building. The main reason for arranging the equipment inside the building is the protection against storms.

Although the process is fairly automated and requires only periodical checks of the operators during their inspection tours, the process plant will be ventilated in order to decrease the indoor temperature.

Facades of the WtE Plant, including the administration building

Arrangement of one block, comprising 1incineration lines (example)

5 days storage for the waste is realized by means of a roof covered storage hall. The given solution assumes a fuel delivery to the storage hall by trucks. The crane operator’s cabin within the main control room area is located at such elevation to allow a visual observation of the waste bunker.

The storage capacity for all consumables and residues from the flue gas treatment is designed for 7 days. The bottom ash storage is done in several concrete boxes, which enable to define the time of maturation. The matured bottom ash will be loaded into trucks by a front wheel loader and transported offside to a landfill.

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The deliveries of operating chemicals and removal of residues occur in a dedicated truck lane that runs between the flue gas treatment section and the turbine building. The turbine building is placed just south to the chemicals and residue equipment. The air-cooled condenser is located as close as possible to the turbine building.

A centralized administration building is located next to the plant. In a separate compartment of the administration building a laboratory and a mechanical and an electrical workshop with respective spare parts warehouses for the frequent plant maintenance are foreseen.

Integrated solution – overall plant layout

The WtE plant will be built on a property in Dunga area as mentioned in the present study. The land field is flat and free from abandoned contaminations. The proposed architecture of a functional technical design is well incorporated into the surrounding. The WtE plant shall consist in the initial phase of one block with 1 line for a waste capacity of 450 tons per day, respectively 150’000 tons per year.

3D-model view of the proposed WtE plant

The waste trucks enter the plant site via an entry road, where they may temporarily wait for entering by one of the entry weighing stations. As per the light signal, they are weighed and directed to one of the tipping bays for unloading of the waste. The emptied waste trucks leave the area via one of the exit weighing stations which will be signalized for their exit. All business traffic comprising deliveries of consumables and residues (such as bottom ash, the separated metals or flue gas treatment residues) is as well directed via the entry and the exit weighing stations.

The block shall consist of: • one common tipping hall with several tipping bays, • one waste crane, • one process line, consisting of incineration grate, steam boiler, flue gas treatment section and a stack, • one common section comprising silos with reagents and flue gas treatment residues, • one common steam turbine with electric power generator and air cooled condenser, • one sub-station comprising HV/MV transformers, 44 | Page

• required power distribution and motor control for all three lines and the turbine, • required automatic control system and emission control equipment, • one common emergency power diesel, • one common control room with accessories for process display and control, • one separation station for bulky items out of the bottom ash followed by iron and non- iron separation stations. The separated materials are collected into containers, which will be replaced as per the actual need. • belt conveyors arranged in parallel (one in operation and one stand-by) to the bottom storage pit, • one bottom ash storage pit with compartments, sized for 1 month ash maturing capacity.

The administration building is located separately from the production plant and is executed as office block including welfare facilities. This section includes its own traffic communication and visitor / employer car parking area.

The layout suggested fits into the plot boundaries made available in the tender documents. The well- advanced state of the arrangement planning is illustrated in the 3D-views of the plant layout. The plant may be also virtually visited by means of animated 3D-movies that may be produced at the time of forthcoming development of the project.

Plant concept and design features The process concept is based on the most reliable and continuously improved technology HITACHI ZOSEN INOVA AG can offer. The proposed solution complies safely with all legal requirements, allows for economically and ecologically optimized operation and provides for maximum flexibility.

The plant shall be designed as per "State-of-the Art" technology adopting the dry flue gas treatment system fulfilling the European directive 2000/76/EC. The modern waste treatment concept includes the following main objectives: • Ecologically sustainable waste treatment methods • Compliance with all regulations • Competitive treatment cost • High flexibility to accommodate changing future demands • Highly efficient power generation 45 | Page

• Optimal Capital Expenditure levels • Compliance with local climatic conditions

The offered solution is based on one line, consisting of a Hitachi Zosen Inova reciprocating grate, an HITACHI ZOSEN INOVA AG heat recovery boiler with an SNCR-DyNORTM process for NOx control and Dry flue gas treatment system, including all necessary consumables storage and the residue handling systems. An efficient turbine-generator set for the heat utilization is lined up for the block i.e. one for three lines. The process is completed with the necessary electrical and instrumentation systems.

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In order to minimize civil investment costs, a straight and simple architectural concept is proposed. The tipping hall should be on the ground floor to avoid complex construction on elevated tipping hall and truck ramps. Taking the local weather conditions and expected noise requirements in consideration, the waste hall, the incinerator, the boiler, the flue gas treatment system and the turbine can be provided without enclosure.

For the heart of the incineration process, Hitachi Zosen Inova AG will provide an incineration- grate of 4.5 m width and 12 m length.

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The preferred boiler design contains 4 vertical passes, which is generally more cost efficient and requires less construction space (compared with a horizontal type). The boiler is conservatively designed for very long-life time, highest efficiency and extended maintenance advantages. To use proven technology, the facility will use “standard” bottom ash extraction systems (push or chain type).

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“Dry” Flue Gas Treatment The assumed limited availability of water will also affect the flue gas treatment system a pure “dry flue gas cleaning system” will be foreseen. The use of an electro-filter is not recommended.

The Bottom Ash Handling

In order to minimize further civil investment costs, an external bottom ash hall or storage area (supported by conveyor belts) instead of bottom ash bunker with a bottom ash crane will be beneficial for the project.

Steam Turbine and Air Cooled Condenser

To deploy the most efficient configuration, use of a reaction type turbine, which has a good efficiency 49 | Page

and high reliability, is proposed. We see the best location of the turbine at the plant end. For the assumed limited availability of water, an air-cooled condenser, may be with water spray cooling during the summer season, is considered as the most appropriate solution.

Electrical & Control System

As the most effective system, the Plant design is based on prefabricated, electrical and control containers. Depending on its function and accessibility, all containers are positioned in the field.

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Overview of the Process The line consisting of an air cooled grate, 4-pass heat recovery boiler with an SNCR process for NOx control, an efficient turbine-generator set for the heat utilization and the dry flue gas treatment system with all necessary waste and residue handling systems.

Block diagram of the process

Principal cross section of the plant The recovered energy from waste shall be converted into electrical energy and serve for own consumption and feed into the electrical network system.

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Steam Boiler

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LOCATION PROPOSED

SCHEMATICS OF THE LAND PARCEL ON WHICH THE FACILITY IS TO BE BUILT.

The facility will be placed in the Dunga area of the island of Unguja in the centre of the island, in close proximity to the waste generating factors on the island. Total area required for the facility is of minimum 10 hectares out of which 8 hectares will be storage for waste, 1 hectare will be the facility for processing the waste and the rest will be interior roads and parking for the waste collection trucks and power transformation station.

INDICATIVE SCHEMATICS OF THE FACILITY WITH THE ELECTRICITY GENERATING EQUIPMENT

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RISK ANALYSIS PROJECT IMPLEMENTATION

Risk Risk Description Risk Mitigation Delay in obtaining permits due to non- Relevant authorities should ensure that permits will performance of Relevant permits be granted promptly, and state such terms in IA. relevant authorities risk With its local experience, ZECO and ZIPA will Project benefits are not coordinate and promote the approval process. available in time as expected Sale price PPA shall include such terms and conditions of decrease due to Decrease of the price meeting the costs required to abide to the Change in change in of sale of electricity Law legislation Legal liability for non compliance of Hire local Human Resource personnel to plan the Tanzania labour law. hiring strategy and relevant labour contracts. Noncompliance with Strictly comply with the local labour laws and local labour law may regulations Labour law risk put INVESTOR – Appropriately handle the relationship with different Zanzibar LTD into local parties. lawsuits and this may Purchase business interruption insurance to mitigate result in compensation strike risk. and lower shareholder's return. Financing cannot be closed caused by Supplier financing already in place for the full scope Debt financing risk failure to meet lender's of the project. requirements for the Project The fluctuation of the exchange rate during INVESTOR – Zanzibar LTD will raise funding by construction period using the same currency as the EPC contract pricing affects the project cost. term. Unfavourable EPC will be taking the exchange rate risk by charging Exchange Rate movement of USD for the payments and fixing the EPC contract Risk exchange rate may price. lower the Equity IRR of PPA will state that, tariff payments will be paid in the project. USD and the loan will be financed in USD in order to Adverse movement of produce natural hedge. exchange rate during operation period Inflation during EPC contract will be fixed price and inflation risk is Inflation Risk construction period borne by EPC contractor. affects the project cost. Interest Rate Risk If the base lending rate The supplier financing bears no financing cost

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is floating, the increase of LIBOR will increase the interest cost of the project and have negative impact on project economics. Force Majeure Natural includes acts of God, Termination epidemic or plague, Purchase commercial insurance to cover the risk of caused by Force explosion or chemical Force Majeure Natural Majeure Natural contamination. Due to force majeure natural, the construction Failure by ZECO (Off- taker) to make tariff PPA will state that ZECO is requested to open Non-Payment Risk payment under the escrow account for the tariff payments in dispute. under PPA PPA and event of ZECO should provide bank guarantee to ensure the termination due to non- tariff payments. payment default The land on which the project will be built is The land will be allocated to the project company for Land use right risk currently owned by the purpose of the build after obtaining ROGZ Feasibility and environmental study should meet the The Project fails to environmental requirement of Tanzania and meet Tanzania Zanzibar. environmental laws, Environment risk The technology which will be implemented is one requirement in project without any emanations into air, water or soil making feasibility and it the most clean and environmental sound environmental study, technology. The personal safety risk during construction Purchase related commercial insurance during and operation periods construction and operation periods. may lead to casualties State clearly the safety responsibility of EPC and property losses, contractor in EPC and O&M contracts. which incur legal INVESTOR – Zanzibar LTD shall include in the Safety and liability and adverse budget for hiring experienced local security firms security risk social impact Strictly comply with the local law and regulations The local security risk related to safe construction in Tanzania. will have adverse INVESTOR – Zanzibar LTD shall design legal and impact on the workable safety system and workflow during construction and construction and operation periods. operation of the Strengthen the safety training for employees. Project, The operation and INVESTOR – Zanzibar LTD will choose highly Cost overrun due maintenance cost may experienced O&M operator. The O&M contract will to poor O&M increase due to state clearly the O&M contractor's responsibility and 55 | Page

various reasons compensation liability.

Plant falls short of projected dependable capacity and heat rate, INVESTOR – Zanzibar LTD will choose highly or fails to meet the Shortfall in plant experienced O&M operator. The O&M contract will required technical performance due state clearly the O&M contractor's responsibility and indices in PPA which to poor O&M compensation liability. may cause INVESTOR

– Zanzibar LTD to compensate ZECO accordingly Construction cost may The construction cost is fixed. Cost overrun increase due to

various reasons. The plant performance Appropriate performance guarantee and liquidated fall short of damages shall be incorporated into the EPC requirements which contract. may cause EOP-TAA Plant quality risk INVESTOR – Zanzibar LTD will establish a project to compensate management team to monitor the quality. TANESCO for failure INVESTOR – Zanzibar LTD will choose highly to attain agreed experienced EPC contractor performance level Adverse effect on the economics of the Provide favorable tax policy in IA and obtain project caused tax law Tax risk certificate of incentives from TIC. changes or withdrawal Hire local tax advisor to assist in tax related matters. of expected tax incentives.

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APPLICABLE LEGISLATION. LEGAL FRAMEWORK.

Regarding the legal framework under which the facility will be built and will operate there are two layers of legislation as follows: • International legislation which has an impact over the project, since a large quantity of the prime matter will be shipped from other countries, and the shipment of such prim matter is regulated strictly by international treaties and regulations. • National legislation, which deals with the environment, production of electricity, land ministry, investments and finance. Please see below the list of regulations and rules impacting the project under any form.

International framework:

1. The Basel Convention on the Control of Trans boundary Movements of Hazardous Wastes and their Disposal was adopted on 22 March 1989 by the Conference of Plenipotentiaries in Basel, Switzerland, in response to a public outcry following the discovery, in the 1980s, in Africa and other parts of the developing world of deposits of toxic wastes imported from abroad. The provisions of the Convention center around the following principal aims: • the reduction of hazardous waste generation and the promotion of environmentally sound management of hazardous wastes, wherever the place of disposal; • the restriction of trans boundary movements of hazardous wastes except where it is perceived to be in accordance with the principles of environmentally sound management; and • a regulatory system applying to cases where trans boundary movements are permissible. 2. Directive 2004/48/EC of the European Parliament and of the Council of 29 April 2004 on the enforcement of intellectual property rights

National framework

Environmental Law 1. The Environmental Management Act, 2004 - (Act No. 20/04) 2. The Industrial and Consumer chemical (Management and Control) Act, 2003 3. The Tourism Act 2008 4. The Water Supply and Sanitation Act, 2009

Energy Law 1. The Electricity (Consumption Tax) Act, 1968 - (Act No. 42/68) 2. The Electricity (Meter Rental) Rules 1957 3. The Electricity Act, 2008 (Act No. 10/08) 4. The Electricity Rules 1932 5. The Energy and Water Utilities Regulatory Authority (Payment of Annual Levy)(Commencement of Application in Petroleum Sector) Rules 2007 6. The Energy and Water Utilities Regulatory Authority (Rules of Procedure) Rules 2007 7. The Energy and Water Utilities Regulatory Authority Act 8. The Rural Energy Act, 2005

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ZECO MAPS / LOCATION MAPS

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