Invest Projects

Construction of a waste processing industrial complex

  • Indicator Results
  • Investment amount, thousand US dollars 34 000
  • NPV of the Project thousand, US dollars 10 808
  • IRR, % 19,4%
  • IBITDA yield, %
  • Payback period, years 7,4
  • Discounted payback period, years - -

Products

Annual capacity:

  • 3,500 tons of carbon black;
  • 30,000 cubic meters of foam glass granulate;
  • 4,400 tons of greenhouse tomatoes and cucumbers.
Project

This investment project (hereinafter referred to as the "Project") plans to build a waste recycling production complex (hereinafter referred to as the "MPC") 15 km south-east of the city of Nur-Sultan. The commissioning of the production is planned for the 4th quarter of 2023, and the output to the design capacity in 2025. The Company's products are planned to be sold in the domestic market of the Republic of Kazakhstan. Construction organizations, tire manufacturing and restoration enterprises, retail and wholesale market networks are considered as target groups for the sale of products.

Company

The initiator is SIO Consulting LLP, whose main activity is the processing of non-metallic waste.

Market
  • In the period from 2016 to 2020, Kazakhstan has seen a steady increase in imports and, accordingly, consumption of carbon black. The volume almost doubled from 372 tons in 2016 to 690 tons in 2020, demonstrating a CAGR of 16.7%. The potential for import substitution is 598 thousand US dollars.
  • In 2020, the volume of the construction industry of the Republic of Kazakhstan reached 11,914 million US dollars with an average annual CAGR for the period 2016-2020 of 6.0%. The volume of imports of foam glass construction products in Kazakhstan increased almost nine-fold from 47 tons in 2016 to 410 tons in 2020.
What is the attractiveness of the project?
  • State support. According to the Concept for the transition of the Republic of Kazakhstan to a "green economy", by 2050 the share of waste recycling should reach 50%. In this regard, the Government provides comprehensive support for the implementation of waste recycling projects.
  • Stable raw material base. The capital of the republic, Nur Sultan, is a dynamically developing city, whose population "produces" more than 350,000 tons of solid waste per year and its active growth will ensure sufficient volume of solid waste for full utilization of the MPC capacities. The solid waste management system in the capital is characterized by the absence of deep waste processing and the disposal of up to 90% of mixed solid waste residues at the open landfill of the city.
Investment offer

The Project requires financing in the amount of 34,000 thousand US dollars, including:
  • 70% (USD 23,800 thousand) - debt financing (if collateral is available);
  • from 30% (10,200 thousand US dollars) - investor participation.
The proposed financing structure and measures of state support are indicative, the final structure of financing and participation in the Project will be determined based on the results of joint negotiations with the investor.


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