Chile - Santiago Composting Project (Anglais)

Ratings for the Santiago Composting Project for Chile were as follows: outcomes were satisfactory, risk to development outcome was not applicable, Bank performance was moderately unsatisfactory, and Borrower performance was unsatisfactory. The objective...  Voir la suite Ratings for the Santiago Composting Project for Chile were as follows: outcomes were satisfactory, risk to development outcome was not applicable, Bank performance was moderately unsatisfactory, and Borrower performance was unsatisfactory. The objective of the project was to build and operate a composting facility to treat urban biodegradable waste and non-toxic wastewater sludge. This will be done through the operation of a composting facility in Santiago, Chile to treat urban biodegradable waste and non-toxic wastewater sludge. The operation was designed to reduce greenhouse gas emissions that usually occur as waste degrades in landfills through the diversion of waste to the composting facility and was also anticipated to contribute to sustainable waste management in Santiago. The reduction in greenhouse emissions would be verified and sold as Verified Emissions Reductions to the World Bank, acting as a trustee for the Spanish Carbon Fund. The private company sponsoring the compost project, Agroindustrial Pullihue Ltda., will retain the resulting revenues. The risk assessment completed during the appraisal stage identified the risks which in the end contributed to its termination. Because of the nature of the CDM mechanism and its performance-based approach, the World Bank assumes a lower burden of these risks relative to investment lending or grant financing mechanisms. This may have led to the carbon finance operation moving ahead even with multiple high risks remaining at appraisal. The risks were too high in terms of significance and number to justify the effort and transaction costs made to sign the emissions reduction purchase agreement and supervise the initial stages of implementation. The risks needed to be mitigated further at appraisal or the carbon finance operation dropped completely. It acts as a reminder that even in performance-based projects, risk assessments should be considered carefully at the stage of project appraisal.  Réduire