Waste processing project in Makkah seen attracting SR3bn investments

Waste processing project in Makkah seen attracting SR3bn investments
Updated 15 September 2013

Waste processing project in Makkah seen attracting SR3bn investments

Waste processing project in Makkah seen attracting SR3bn investments

Local and international consortiums are bidding for the establishment of a solid-waste processing plant in Makkah with investments estimated to reach SR3 billion, a senior official in the Municipality of Makkah said. 
Osama Al-Bar, mayor of Makkah, said the project would occupy an area of 2.5 million square meters and process wastes ranging between 750,000 and 1 million tons produced by the holy city annually.
The project aims to preserve the environment from dangers associated with the accumulating industrial wastes, the mayor pointed out.
Al-Bar explained that the consortiums would be selected depending on the technical and financial considerations set by the bid specifications as well as the number of jobs they would generate for Saudi youth.
Proposals offered by two consortiums composed of 12 local and international groups of companies were referred to a committee for analysis and study. Upon the committee’s recommendation the project will be awarded to one of the two consortiums or for re-tendering.  
The mayor revealed that the land plot would be rented to potential investors at a nominal price given that the project aims to reduce the levels of environmental waste in the holy city. 
The Council of Ministers recently endorsed the waste management system, urging both the public and private sectors to cooperate together to reduce waste and invest in recycling projects.  
The waste management system prohibits any person, in his personal or legal capacity, to use, or allow others, to use any land or building he owns as a location for the disposal of municipal or solid wastes, without obtaining the approval of the Ministry of Municipal and Rural Affairs as well as other concerned governmental bodies.
The system stresses the imposition of penalties on whoever deposits municipal or solid wastes into flood passages, valleys, wells, beaches as well as rain and sewage networks. It also imposes penalties on those placing hazardous medical or industrial wastes in municipal waste collection containers and those who collect, store, or recycle wastes without authorization.
According to the latest data issued by the ministry, the cost of the currently implemented cleanup projects in the Kingdom, including the waste disposal projects, is valued at SR7.8 billion.
The government has awarded an estimated 100 projects for waste management, including 18, which were allocated for waste dumping operations at the cost of more than SR249 million, according to a ministry official.
The mounting costs of environmental projects, an average rate of 5-8 percent annually reflects the development, population growth and expansion of the Kingdom’s cities, in addition to the pace of development in industrial and business sectors.