Decision No. 1354/QD-BXD dated December 29, 2017 announcement of investment rates and standard costs of treatment of municipal solid waste

DECISION

ANNOUNCEMENT OF INVESTMENT RATES AND STANDARD COSTS OF TREATMENT OF MUNICIPAL SOLID WASTE

THE MINISTER OF CONSTRUCTION

Pursuant to the Government’s Decree No. 81/2017/ND-CP dated July 17, 2017 defining functions, tasks, powers and organizational structure of Ministry of Construction;

Pursuant to the Government’s Decree No. 38/2015/ND-CP dated April 24, 2015 on management of waste and discarded materials;

At the request of the Director of the Department of Construction Economics, the Director of the Technical Infrastructure Agency, and the Director of Institute of Construction Economics,

HEREBY DECIDES:

Article 1.Investment rates in construction of municipal solid waste treatment facility and standard municipal solid waste treatment costs are announced together with this Decision as reference for relevant organizations and individuals in making investment and operating municipal solid waste treatment facilities.

Article 2.This Decision comes into force from February 01, 2018 and supersedes Decision No. 322/QD-BXD dated April 06, 2012 of the Minister of Construction.

INVESTMENT RATES AND STANDARD COSTS OF TREATMENT OF MUNICIPAL SOLID WASTE

(Enclosed with the Decision No. 1354/QD-BXD dated December 29, 2017 of the Minister of Construction)

PART I. INVESTMENT RATES

1. General description

1.1. The investment rate means the rate of necessary costs of investment in construction of a new municipal solid waste (MSW) treatment facility determined for a MSW treatment capacity unit (ton/day) according to design of each type of treatment technology and in conformity with technical regulations/ standards for construction as well as applicable technical regulations on environment.

Design capacity means the maximum amount of MSW that a MSW treatment facility is designed to handle and is measured in ton/day.

1.2. Investment rates announced together with this Decision are the basis for preliminarily determining total investment and managing costs during the period from the preparation to the inauguration of the MSW treatment facility.

1.3. Investment rates are determined for construction of new MSW treatment facilities with popular features and application of medium-high-technologies.

Investment rates are determined according to market prices of fuels, energy, supplies and labor, and policies applicable in Quarter II, 2017.

1.4. An investment rate includes: costs of technological research, equipment manufacturing and installation; construction of the MSW treatment facility (including construction of infrastructural systems in the vicinity of the MSW treatment facility, leachate treatment system and online environmental monitoring system, etc.); project management; construction consulting and other costs. The determined investment rate includes VAT on such costs.

An investment rate excludes:

- Compensation and relocation grants;

- Loan interests incurred during the investment period (if any);

- Initial working capital;

- Provisions included in total investment (including provision for extra workload and inflation provision);

- Other costs, consisting of: costs of environmental impact assessment and monitoring impacts of the project on environment; costs of construction quality control; costs of special foundation works (if any); costs of hiring foreign consultants (if any) and construction of structures/work items outside the MSW treatment facility’s fence.

1.5. Investment rates announced together with this Decision are determined for:

- MSW treatment facilities and solid waste landfills meeting requirements of the QCVN 07-9:2016/BXD (National technical regulation on technical infrastructure works: Solid waste treatment and public toilet);

- MSW treatment technologies that meet the following environmental standards: QCVN 08-MT:2015/BTNMT (National technical regulation on surface water quality); QCVN 09-MT:2015/BTNMT (National technical regulation on ground water quality); QCVN 05:2013/BTNMT (National technical regulation on ambient air quality); QCVN 61-MT:2016/BTNMT (National technical regulation on domestic solid waste incinerator) and relevant environmental standards.

2. Instructions on application of investment rates

2.1. Type or class of the construction works, time of determining total investment, features and requirements of the investment project (including conditions regarding the construction site, funding sources, construction progress, capacity scale and market prices, etc.) should be taken into account when applying an investment rate so as to determine other costs which are not included in such investment rate and make adjustments to reach an appropriate investment rate.

2.2. Investment rates announced together with this Decision shall be adjusted in the following circumstances:

- The capacity of a MSW does not exceed the capacity limits announced together with this Decision.

- An investment rate is employed to determine total investment in expansion, upgrade or modification of an existing MSW treatment facility or construction of a MSW treatment facility with specific technological requirements.

- There are special factors relating the construction site, geology or foundation of the construction works.

- The investment project on construction of a MSW treatment facility uses ODA with spending items other than the costs announced herein.

- There is a significant difference between the market price applicable at the time of determining construction costs and that at the time of announcing the investment rate.

- There are amendments to the national technical regulations on technical infrastructure works and quality which are applied to determine investment rates herein.

2.3. Construction price indexes of technical infrastructure works or experts’ advices may be adopted to adjust the investment rate based on analysis, evaluation and comparison of factors relating geology, topography, hydrography and regional market prices.

3. Investment rates in construction of MSW treatment facilities

3.1. Bio-fertilizer processing technology

Table 1. Investment rates in construction of MSW treatment facilities with application of biofertilizer processing technology

3.2. Incineration technology without power generation and energy recovery

Table 2. Investment rates in construction of MSW treatment facilities with application of incineration technology

3.3. Combined bio-fertilizer processing technology and incineration

Table 3. Investment rates in construction of MSW treatment facilities with application of combined biofertilizer processing technology and incineration

3.4. Sanitary landfill technology

Table 4. Investment rates in construction of MSW treatment facilities with application of sanitary landfill technology

Notes: Foreign technologies and equipment employed in investment rates are those originated from developed countries such as France, Germany, Finland, Belgium, Korea, etc.

PART II. STANDARD MSW TREATMENT COSTS

1. General description and instructions on application

1.1. Standard MSW treatment cost means the sum of all necessary costs for handling 01 ton of MSW measured at the weighing station of the MSW treatment facility with a reasonable profit rate.

1.2. Standard MSW treatment costs announced herein shall be used as reference for formulation of the investment project on construction of MSW treatment facility, appraisal and approval for prices of MSW treatment services.

1.3. Standard MSW treatment costs announced herein are determined for:

- MSW treatment facilities and solid waste landfills meeting requirements of the QCVN 07-9:2016/BXD (National technical regulation on technical infrastructure works: Solid waste treatment and public toilet);

- MSW treatment technologies that meet the following environmental standards: QCVN 08-MT:2015/BTNMT (National technical regulation on surface water quality); QCVN 09-MT:2015/BTNMT (National technical regulation on ground water quality); QCVN 05:2013/BTNMT (National technical regulation on ambient air quality); QCVN 61-MT:2016/BTNMT (National technical regulation on domestic solid waste incinerator) and relevant environmental standards.

1.4. Standard MSW treatment costs are determined in a circumstance that the MSW treatment facility is operated normally, MSW is handled in conformity with the technical process and quality of generated products meets selected technological requirements and applicable technical regulations on environment.

1.5. Costs of construction and operation of the MSW treatment facility (including costs of leachate treatment, online environmental monitoring and burial of handled waste, etc.) shall be used as the basis for determining standard MSW treatment costs while costs recoverable from selling products generated from the MSW treatment process, if any, shall be not taken into account.

1.6. Standard MSW treatment costs are determined according to market prices of fuels, energy, supplies and labor, and policies applicable in Quarter II, 2017.

1.7. The standard cost for treatment of 01 ton of MSW includes: direct costs, manufacturing overhead, general and administrative expenses (excluding loan interests), standard profit and VAT.

1.8. Technology employed to treat MSW, facility’s capacity, ability to sell generated products (if any), market prices and applicable policies should be taken into account to adjust standard MSW treatment costs announced herein before application.

1.9. The interpolation method shall be employed to determine the standard MSW treatment cost of a MSW treatment facility whose capacity does not exceed the capacity limits announced herein.

2. Standard MSW treatment costs

2.1. Bio-fertilizer processing technology

Table 5. Standard MSW treatment costs of MSW treatment facilities with application of biofertilizer processing technology

2.2. Incineration technology without power generation and energy recovery

Table 6. Standard MSW treatment costs of MSW treatment facilities with application of incineration technology

2.3. Combined bio-fertilizer processing technology and incineration

Table 7. Standard MSW treatment costs of MSW treatment facilities with application of combined biofertilizer processing technology and incineration

2.4. Sanitary landfill technology

Table 8. Standard MSW treatment costs of MSW treatment facilities with application of sanitary landfill technology

Notes:

- Foreign technologies and equipment employed in standard MSW treatment costs are those originated from developed countries such as France, Germany, Finland, Belgium, Korea, etc.

- Costs announced in Tables 5, 6, 7 include costs of depreciation of machinery, equipment and fixed assets.

- Costs announced in column (3) of Table 8 include costs of depreciation of machinery, equipment and fixed assets (if any) and landfill depreciation cost.

Costs announced in column (4) of Table 8 include costs of depreciation of machinery, equipment and fixed assets (if any) but exclude landfill depreciation cost.