Norio Saito, ADB deputy country director in Viet Nam said, the project will use a Public-Private Partnerships (PPP) scheme in which the private sector will design, build, finance, operate, and maintain the waste disposal and treatment facilities. These facilities will meet the city’s requirements beyond 2020 by applying appropriate technologies for treating waste.
The concession period and other parameters including the technologies to be used will be determined based on the feasibility study. The project will complement the city's initiatives to improve waste collection.
ADB’s assistance to Viet Nam to identify and develop PPPs, including in the waste sector, is a key priority in ADB’s 2016–2020 Country Partnership Strategy for Viet Nam that supports Viet Nam’s environmentally sustainable growth.
The project will be ADB’s second PPP transaction advisory engagement in Viet Nam and its first in the solid waste sector. As a transaction advisor for the project, ADB will work with the city to explore the most appropriate technology for the project, attract private sector investors to the project, create document and contact templates that may be used for future PPPs in the sector and region, and build local expertise in PPP management and execution.
Da Nang, a rapidly growing industrial and tourism hub in central Viet Nam with a population over 1 million, collects about 700-750 tons of solid waste per day. Waste isdisposed of in the city's existing landfill, but the remaining capacity will be fully utilized by 2020. Development of a new site and waste treatment facility is an urgent task for the city, to make the city's solid waste management more sustainable and environmentally friendly.