Baltic Waste Investment Concept

The RECO project has recognized that the investment process is one of the cornerstones for a successful organization of municipal waste management. This document aims at describing the investment process as a cycle, taking into consideration the complexity and continuity of the process as well as the uncertainties related to the analytical tools, procurements, return on investments, evaluations, etc. It should provide practical assistance to all stakeholders interested in investments in municipal waste management.

The Baltic Waste Investment Concept identifies the following five phases of an investment process: Drivers, Analysis, Decisions, Implementation and Evaluation. The Drivers phase describes legislation as the main direct force and environment/climate, economy and society as the main indirect forces. The outcome of this phase will be a clear definition of the objectives, addressing issues & challenges (main driving forces) as a basis for further analysis. The Analysis phase is divided into three major types of analyses: i) Context analysis, where the national or regional perspective on waste management is in focus; ii) Project analysis, where the investment project is clearly identified; and iii) Experience analysis, where lessons from successes and failures in similar projects in the region are synthesized. The outcome of this phase will be 2-3 alternative solutions that can be further presented to decision makers.

The Decision phase is when the decision makers select one solution out of the 2-3 presented alternatives. It is important to remember and consider all different aspects (even if finances would normally play an essential role). This has been presented in a simplified scoring matrix. The outcome of this part will be one preferred solution selected for implementation. The Implementation phase addresses several important aspects related to Finances, Procurement, Construction works, Operation and Maintenance. The outcome of this part will be an investment that is completed and commissioned.

The Evaluation phase is necessary in order to properly measure success and work toward continuous improvement. Two types of evaluations are suggested: Performance evaluation and Evaluation if the objectives have been met. The outcome of this phase is an evaluation of the completed investment. All of the phases will be completed with a number of questions on the checklist. Finally, the importance of the complexity and continuity of the entire investment cycle is presented. Also, the significance of the waste management hierarchy for all phases of the investment cycle is stressed.