Selangor to invest RM1.5bil in waste disposal programme (Update)


Modern facility: Worldwide Holdings chairman Datuk Nor Azmie Diron (second from left) exchanging documents with China Western Power Engineering and Construction MD Wu Bin at the joint development agreement signing ceremony. Looking on are Norazlina and Amirudin.

SHAH ALAM: Selangor plans to invest about RM1.5bil over the next several years to manage its solid waste in a systematic and sustainable way.

It is undertaking the development of the country’s biggest and modern waste-to-energy project at the Jeram sanitary landfill in a public-private partnership that will cost RM500mil under phase one and another RM500mil under phase two.

A second waste-to-energy plant, which will also cost RM500mil, is to be built in Tanjung Dua Belas in Kuala Langat.

Selangor Mentri Besar Amirudin Shari said the state planned to have a more sustainable system in solid waste disposal as landfills require a lot of land.

“It costs RM36 per tonne to send solid waste to landfills in Selangor compared with about RM100 per tonne in Kuala Lumpur. So, the cost will only go up.

“A more systematic way to manage waste is needed as the state progresses,” Amirudin said after witnessing a joint development agreement signing ceremony between state-linked company Worldwide Holdings Bhd and China-based Western Power Clean Energy Sdn Bhd here yesterday.

Western Power Clean Energy is a joint venture between China Western Power Industrial Co and China Western Power International.

According to press reports, the Federal Territory is also looking at modernising its waste disposal system, but its plan to build an incinerator costing RM700mil to RM900mil in Taman Beringin, Kepong, hit a snag after the May 9 election, due largely to its location. It is surrounded by residential areas, whereas the Jeram plant has a three-km buffer zone.

Worldwide Holdings – a wholly owned subsidiary of Perbadanan Kemajuan Negeri Selangor – will pioneer the RM500mil phase one, estimated to be completed by 2022, and phase two by 2024.

Phase one of Jeram’s waste-to-energy facility will be part of the state’s integrated solid waste management centre.

It will have material recovery facilities for construction and demolition waste, a waste digestor, research and development centre and composting plant.

The company is negotiating with a few banks to issue green sukuk bonds to fund phase one.

The state government has allocated a separate RM40mil for land acquisition.

“This is a bankable project. We are negotiating with banks to try to get the best rate,” Worldwide Holdings’ group chief executive officer Datin Paduka Norazlina Zakaria told the press conference.

“Selangor generates 7,000 tonnes of solid waste a day. Worldwide Holdings is currently managing six landfills, with Jeram being the largest, at 3,000 tonnes,” Norazlina said.

Phase one will have a capacity of 1,200 tonnes a day, equivalent to 240 garbage trucks with an average capacity of five tonnes per truck.

The first phase will be able to produce 20MW to 24MW to power about 24,000 households within the vicinity of the plant. It will occupy 15 acres of the 200-acre Jeram landfill.

A phase two extension, estimated to be completed in 2024, would have a capacity to absorb 2,000 tonnes, Norazlina said. The joint development agreement was for phase one, she stressed.

“We have estimated the two phases to cost about RM1bil,” Norazlina said.

Western Power Clean Energy Sdn Bhd is a joint venture between China Western Power Industrial Co, Ltd and China Western Power International Pte Ltd.

The China Western Power group has over 30 years of experience in new energy and power plant design in 30 provinces and autonomous regions in China and globally, including in Britain, India and Japan.

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