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Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Municipal Solid Waste to Energy
Project ID
Fiscal year
Guarantee holder
RenewGEN Pte Ltd.
Investor country
Host country
Sri Lanka
Environmental category
Solid Waste Management
Date SPG disclosed
September 24, 2012
Projected Board date
December 20, 2012
Gross exposure
 $38.0 million
Project type
Strategic priority area
Complex Infrastructure

This summary covers an equity investment by RenewGEN Pte Ltd ("RenewGEN") of Singapore and non-shareholder loans from yet to be identified lenders in a waste-to-energy project in Sri Lanka. The investors have applied for MIGA guarantees totaling up to $38 million for a period of up to 20 years (equity) and 12 years (non-shareholder loans) against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance.

The project involves the construction and operation of a municipal solid waste-to-energy plant in the Kotte Waste Management Zone, which is located in Sri Lanka's Western Province. RenewGEN Environment Protection Kotte Private Ltd, a joint venture company of RenewGEN and its partners, is taking the project forward on a 25-year build-operate-transfer basis. With the total investment estimated at up to $38 million, the waste treatment and power generation project is expected to dispose of 400-580 tons per day of municipal solid waste and to generate installed power capacity of up to 10 megawatts.

Environmental Categorization

The project is a category B under MIGA's Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation for their investment in the project.

Development Impact

Solid waste treatment is a critical environmental and health issue in Sri Lanka's Western Province, and has become increasingly important with the country's continued economic and urban development. The construction of a waste treatment and power generation facility is a high priority for the government.

The project will apply grate incinerator technology to treat municipal solid waste and minimize diversion of waste to open dumps and landfills. In the process, the plant will use the resultant heat/steam to generate renewable energy. The project is expected to have a strong development impact by improving the management and disposal of solid waste, thereby improving the physical environment and people's health; generating low greenhouse gas emission power that helps reduce the large gap between energy demand and supply; and creating employment opportunities while contributing to government revenues.

The proposed project also supports MIGA's strategy of promoting South-South investment, investment in complex infrastructure projects, and in countries eligible for assistance from the International Development Association.

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