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

WtE Short Questionnaire
Country / Region
Tunisia Africa
Project Value
N/A
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 98 316764

Timeline & Location

Region/City
Africa
Country
Tunisia
Construction Start
N/A
Operation Start
N/A

WtE Project Details

Scale/Capacity

Approximately 1788 tonnes/day

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). - 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 energy sources.

Electricity Regulation

Government Decree No. 2016-1123 of August 24, 2016, establishing the conditions and procedures for implementing projects for the production and sale of electricity from renewable energy sources

Government Engagement

Ministry of Environment Ministry of Energy/Energy Transition Ministry of Finance

Regional Partnerships

Oued Laya municipality Governorate of Kairouan Governorate of Zaghouan Governorate of Mahdia Governorate of Monastir

Land Allocation

TBD

Offtake Agreements

TBD

Technical Feasibility

MSW Collection Systems

The project aims for centralized waste collection within a geographical area not exceeding a 60 km radius in the central-east Sahel region. Waste quantities from four governorates are added to the quantities currently collected and directed to the Oued Laya site: 740 + 292 + 35 + 163 + 558 = 1788 tons of household waste that can be collected and directed to the site of Oued Laya daily to be processed

MRF/MBT Integration

To be developed during feasibility

MSW Volumes

Average LHV is estimated at 6.8 MJ/kg, based on the typical energy content of its components (organics, plastics, textiles, paper, and miscellaneous fractions). This corresponds to around 1890 kWh of thermal energy per tonne of waste. With incineration leading to an electrical conversion efficiency of 30%, each tonne of waste will lead to about 567 kWh of electricity.

Auxiliary Facilities

This gas is currently burned using two flares. After collecting biogas from compartments 5, 6, and 7, the flow rate will reach 4000 m3/h. An installation of cogeneration engines will produce up to 170 MWh/day.

Operational Requirements

To be developed during feasibility

Sustainability

GHG Mitigation

It aims to divert up to 1788 tonnes/day from the landfill.

SDG Alignment

It seeks to support Tunisia's national targets for renewable energy (35% by 2030) and greenhouse gas reduction (45% carbon intensity reduction by 2030), while creating skilled jobs and improving living conditions in communities affected by landfill operations. 

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 will create skill jobs. 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 donors

Technology Transfer

To be developed in discussion with donors

Financial Feasibility

Preparation Costs

To be developed 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

To be defined during feasibility

Cost per Unit Output

To be defined during feasibility

Financing Breakdown

To be defined during feasibility
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