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Waste-to-Energy Project in Oued Laya Site for Sahel Region.

WtE Short Questionnaire
Country / Region
Tunisia Africa
Project Value
$50.00M
Status
Concept
Sector
Waste Management

Project Description

The Sahel region of Tunisia faces acute challenges in municipal waste handling and energy security. Approximately 740 tonnes of household waste per day are currently delivered to the Oued Laya landfill, where limited treatment capacity and increasing input volumes accelerate landfill saturation and operational costs. When combined with the growing waste streams from neighboring governorates such as Monastir, Mahdia, Kairouan, and Zaghouan, the region generates sufficient quantities to sustain a high-efficiency WtE facility capable of long-term continuous operation. At the same time, Tunisia depends on imported natural gas for more than 90% of its electricity production, creating vulnerability to external market fluctuations and placing pressure on public finances. The development of a modern WtE system in Sousse presents a dual solution: reducing environmental and health impacts associated with landfilling and generating reliable renewable electricity that strengthens energy independence. The project seeks to transform Oued Laya into a regional hub for waste valorization, demonstrating how integrated WtE infrastructure can serve as a scalable model for urban and peri-urban waste management modernization in Central-East Tunisia.

Proponent Information

Proponent Legal Name
Tunisia Ministry of Environment
Description
The Ministry of the Environment is responsible for the administration and regulation of the environment in Tunisia
Organization
UN-Habitat CIF

Contact Information

Contact Person
mr Mohamed Gargouri
Role
Project Sourcing Consultant
Phone
+216 9831676

Timeline & Location

Region/City
Africa
Country
Tunisia
Construction Start
January 31, 2030
Operation Start
January 31, 2032

WtE Project Details

Technology Types

Landfill gas extraction (LFG) Incineration with energy recovery

Waste Types

Total Municipal Solid Waste

Main Outputs

Biogas Electricity

Scale/Capacity

The project aims to divert up to 1788 tonnes/day of waste from landfills, generate approximately 1.35 GWh of renewable electricity per day (equivalent to 56 MW baseload), and strengthen biogas capture systems to produce up to 96 MWh/day through cogeneration, replacing the current flaring of landfill gas, to recover methane emissions currently lost through flaring.

Private Sector Partnership

Involvement through a public-private partnership: PPP ; BOOT type, the investment and operating costs are covered by the private investor/operator. The latter's revenues come from energy sales and access fees as function of tons of waste received. This model avoids a large investment for the state and secures the investor's returns. The long-term PPP contract offers visibility and security regarding revenue: the tipping fees are guaranteed by the public entity. The legal framework for PPPs is established in Tunisia (Law No. 2015-49), managed by the General Authority for Public-Private Partnerships (IGPPP), which provides a structured and predictable regulatory environment for international investors. Power Purchase Agreements (PPAs) with STEG also provide a stable source of revenue. The proposed model is a benchmark financial and contractual structure for a large WTE project involving an international private investor within a public-private partnership framework

Political & Regulatory

Policy Alignment

- Decree No. 2009-2773 of September 28, 2009, establishing the conditions for the transmission of electricity produced from renewable energy sources and the sale of its surplus to the Tunisian Electricity and Gas Company (STEG).

Electricity Regulation

-Decision of the Minister of Industry, Energy and Mines of June 2, 2014, setting the transmission and purchase tariffs by STEG (Tunisian Electricity and Gas Company) for surplus electricity produced from cogeneration and renewable energy facilities. - Law No. 2015-12 of May 11, 2015, relating to electricity production from renewable energysources.

Government Engagement

Ministry of Environment Ministry of Finance Ministry of Energy

Regional Partnerships

Municipality of Sousse

Land Allocation

TBD

Offtake Agreements

TBD

Technical Feasibility

MSW Collection Systems

The project aims to divert up to1788 tonnes/day of waste from landfills. - Belonging to the Governorate of Kairouan: Districts of Sbikha (72.3 tons of waste per day), Kairouan South (88.5 tons), Kairouan North (96.3 tons) and Chebika (34.6 tons). - Belonging to the Governorate of Zaghouan: District of Nadhour (34.6 tons). - Belonging to the Governorate of Mahdia: Districts of Ouled Chamekh (22.2 tons), Essouassi (54.6 tons), Bou Merdes (34.5 tons) and El Jem (52.1 tons). - All the Governorate of Monastir (558 tons).

MRF/MBT Integration

To be defined during feasibility

MSW Volumes

1788 tonnes/day of waste from landfills. Preliminary waste composition TBA by the Ministry of Environment, and with the application of WaCT for detailed waste composition.

Auxiliary Facilities

To be defined during feasibility

Operational Requirements

To be defined during feasibility

Sustainability

GHG Mitigation

The project aims to divert up to 1788 tonnes/day of waste from landfills reducing landfill pressure and methane emissions.

SDG Alignment

This project directly contributes to Tunisia’s national targets for renewable energy—35% of the electricity mix by 2030—while advancing commitments under the country’s updated Nationally Determined Contribution, including the targeted 45% reduction in carbon intensity by 2030.

Community Engagement

The project will improve living conditions in communities affected by landfill operations. The detailed impact of this dimension will be explored further on application of the SDG Assessment Tool.

Job Creation

The project is expected to generate skilled employment, promote the circular economy, enhance environmental quality in agricultural zones surrounding Oued Laya, and improve service delivery for municipalities across the Sahel region. The detailed impact of this dimension will be explored further on application of the SDG Assessment Tool.

Informal Operators

To be developed in discussion with donor

Technology Transfer

To be developed in discussion with donor

Financial Feasibility

Preparation Costs

To be defined during feasibility

Total CAPEX

Detailed CAPEX/OPEX to be defined during feasibility stage; indicative figures consistent with Tunisian LFG/RDF benchmarks.

Annual OPEX

Detailed CAPEX/OPEX to be defined during feasibility stage; indicative figures consistent with Tunisian LFG/RDF benchmarks.

Investment Committed

To be developed in discussions with the donor

Funding Gap

To be defined during feasibility

Revenue Sources

Landfill biogas capture Electricity generation

Cost per Unit Output

To be defined during feasibility

Financing Breakdown

To be defined during feasibility
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