|BACKGROUND||Waste Recycling is a process of converting waste materials into new products to prevent waste of potentially useful materials, partly supplement the consumption of fresh raw materials, reduce energy usage (almost 70% less energy is required in recycling), reduce air pollution from incineration and water pollution from landfilling by reducing the need for “conventional” waste disposal, and lower greenhouse gas emissions.
The materials that can be recycled include glass, aluminum, polyethylene (shopping bags, laundry bags, pure water sachets, yoghurt wrappers, soft poly bags, hospital drip bags, popcorn wrapper, bread wrapper, cellophane), plastic water bottles, metal scrap, different kinds of paper, electronics – computers, cellular phones, keyboards, batteries and other small electronic equipment, textile, wood, wire, cables, plastic product, rubber, etc. Apart from this industrial recycling, all the leaves, food leftovers, waste, twigs and other garden waste are decomposed by worms and converted into fertilizers.
A great percentage of materials are being recycled and are being used as household products and their number is increasing by the day. The most common recyclable material is plastic. Many plastic products and bags are in use nowadays. Plastic recycling serves as a solution to the earthly pollution. Plastics are polymers and are resinous and they are melted down to make other products. Most importantly plastic containers like water bottles, beverage containers, milk bottles, soap boxes, etc. are recycled.
The major actors in waste recycling clusters include:
GENERATORS – comprising Households and Businesses,
COLLECTORS – comprising scavengers, municipal solid waste disposal workers, private waste collectors, etc.
TRADERS – comprising, Itinerant traders, dealers, etc,
MICRO PROCESSORS – who either retail or sell to wholesalers.
METAL PROCESSING AND PLASTIC PRODUCTION FACTORIES –Comprising manufacturing companies.
|RATIONALE||v Protects Environment: The foremost benefit or recycling is that it helps in protecting the environment in the most balanced manner. For example, while many trees are cut down continually, recycled paper made from certain trees is re-used repeatedly to minimize felling/deforestation. With re-cycled paper as an outstanding example, a number of other natural resources can be reused this way.
v Reduces Energy Consumption: A large amount of energy is consumed by processing raw materials at the time of manufacture. Recycling helps to minimize energy consumption, which is crucial for massive production, such mining or refining. This also makes the production process very cost-effective and beneficial for manufacturers.
v Reduces Pollution: Industrial waste today is the main source of all types of pollution. Recycling of industrial products such as cans, chemical, plastics helps to cut down pollution levels considerably, as these materials are re-used, instead of throwing them away irresponsibly.
v Reduces Global Warming: Recycling helps to alleviate global warming and its ill effects. Massive waste is burned in heaps which produces large amount of greenhouse gas emissions such as carbon dioxide (CO2) and chlorofluorocarbons (CFCs). Recycling ensures that the burning process is minimized and any waste is re-generated as a useful product with no or minimal harmful impact on the environment. Recycling produces less greenhouse gases as industries burn fewer fossil fuels for eco-friendly products.
v Judicious and Sustainable use of Resources: Recycling promotes judicial and sustainable use of resources. This process prevents indiscriminate use of any material when available in abundance.
v Conserves Natural Resources: If old and used materials are not recycled, the new products are made from extracting fresh raw materials from beneath the earth through mining and extraction. Recycling helps in conserving important raw materials and protects natural habitats for the future. Conserving natural resources such as wood, water and minerals ensures their optimum use.
v Reduces Amount of Waste to Landfills: Recycling old and waste products into new products reduces the amount of waste that go to landfills. This helps in reducing water and land pollution as landfills are a major source in contributing to destruction of natural environment.
v Create Green Jobs: Recycling is good for the environment and also promotes the creation of green jobs.
v Reduction in the importation of raw materials for those industries that are import dependent for their raw materials.
|SOURCE OF TECHNOLOGY||Waste recycling is a simple technology. It involves basically collecting, sorting, washing, weighing, drying grinding, mixing and processing, depending on the material and the purpose for which it is required. Some suppliers of items of plant and machinery include the following:
Worldwide Recycling Equipment Sales, LLC
|TARGET MARKET/ CRITERIA||1. Small and Medium Enterprises (SMEs) that are interested in establishing recycling plants
|PROJECTED IMPACT||Each of the following categories is expected to generate between 36 – 100 jobs:
|SINGLE OBLIGOR LIMIT||Up to N500 million.|
|PRICING||Interest Rate: 9 % per annum.
Fees: 1% Processing Fee for loan less than N50 million.
1% each for Appraisal and Commitment Fees for loan above N50 million
|TENOR||31/2 – 7 years (inclusive of moratorium).|
|MORATORIUM||6 – 12 months from date of Loan Disbursement.|
|Loan up to N50 million: 90% maximum from BOI (including working capital from BOI or the SME-friendly banks).
Contribution by the promoter – 10% (minimum)
Loan above N50 million: 80% maximum (including working capital from BOI or the SME-friendly banks).
Contribution by the promoter – 20% (minimum)
For an existing project, the estimated value of the factory building and/or relevant processing equipment, may be applied against the borrower’s 10% contribution. The factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers.
|FUNDING SOURCES||· Loans of N5 million – N50 million: CBN N220 billion Micro, Small and Medium Enterprise Development Fund (MSMEDF)
· Loans above N50 million: BOI Fund
· For those customers with exportable products: AfDB facility.
· In phases in accordance with agreed milestones and shall be backed by provision of performance bond by the accredited equipment suppliers (where the suppliers demand for advance payment before delivery of the equipment).
· Establishment of Letters of Credit where the plant and machinery are to be imported.
After successful installation and testing of the equipment and payment shall be directly to raw materials suppliers.