The DFCD invests in wastewater and faecal sludge processing

November 2020

News

The Investment Committee for the Origination Facility of the Dutch Fund for Climate and Development (DFCD) has approved a EUR € 301,432 grant and SNV technical assistance package for Safi Sana Mali Ltd (“Safi Sana Mali”) on 12 November 2020.

The grant and technical assistance (TA will allow Safi Sana to develop the final business investment proposal for a Faecal Sludge and Industrial Wastewater Treatment Plant in Bamako, Mali. The investment proposal will contribute significantly to respond to resilient livelihoods of the people in the Sahel region. The grant and TA will be used for:

  • multi-stakeholder engagements that allow support and collective action needed for the designing and implementation process of the proposed investment within a landscape approach for business investment (in the Sahel);
  • feasibility study – incl. a detailed survey on quantities and composition of industrial wastewater, supply-side market study and advisory on faecal sludge supply logistics and handling conditions to Sotuba;
  • advisory on procurement plan, financing plan, licence to operate and operation and maintenance planning;
  • preliminary environmental and social impact assessment (ESIA) and;
  • confirm market conditions and project plan (Willingness and ability to pay for services rendered, especially sewerage; sales and offtake terms and conditions; competition).

About Safi Sana Mali 

Safi Sana Mali is a private limited company whose business concept involves converting wastewater, human and organic waste, collected from improved public toilets, pit latrines and organic waste sources (e.g. markets, abattoirs, agri/agro-industries), into value-added products such as i) electricity (sold to utilities or industries via a Power Purchase Agreement), ii) irrigation water and high nutrient soil enhancer (sold to local farmers to increase agricultural yields), iii) briquettes and pellets for efficient cookstoves and iv) biogas.

Safi Sana Mali is seeking to invest in a wastewater and faecal sludge processing plant that handles 300 tons/day. Of this, 20% (60 tons/day) of sludge will be mixed with other bio-waste organic components such as market and food waste, channelled to a digester and used to produce compost, organic fertilizer while 80% (240 tons/day) of the sludge and wastewater will be used to produce electricity as depicted in the graphic below.

Project impact 

 The project is expected to create a positive impact for:

  • the 340,000 inhabitants of the Northern part of Bamako, who obtain better sanitation services;
  • the industries located in the Sotuba Industrial area who will enjoy a cleaner work environment as bio-waste will be regularly collected;
  • the electricity/ biofuel supplied to industries will give the businesses a cheaper and reliable power supply with fewer interruptions;
  • the Safi Sana project also facilitates progress towards fulfilling the following Sustainable Development Goals (SDGs).
    1. Goal 5: Achieve gender equality and empower all women and girls
    2. Goal 6: Ensure availability and sustainable management of water and sanitation for all
    3. Goal  7: Ensure access to affordable, reliable, sustainable and modern energy for all
    4. Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable

Indicative Nationally Declared Commitments (INDC)

The proposed project fits very well with the Indicative Nationally Declared Commitments (INDC) Contribution Prévue Déterminée au Niveau National (CPDN)  of Mali as made, for the Paris Agreement.

The INDC Climate Change Mitigation contribution, expressed as a reduction of green house gases released for the period 2020-2030 in comparison to the base-line (business as usual scenario), is for the energy sector 31%, for the agriculture sector 29% and for de forest land-use sector 21%.

The energy sector is characterised by a massive use of wood and charcoal for heating purposes contributing 82% of released CO2 in 2012, followed by the transport sector (12.2%) and the production of electricity (4.7%). The greenhouse gases contribution of producing electricity is comparatively low because of a low percentage of people connected (2010 – 55% of the urban population and 15% of the rural population), however, there is the high growth of the electricity demand (2010 – 10 %). Only 3% of energy is generated by renewable energy resources and there is a 100% dependency on petroleum products for energy supply.

The action plan for the energy sector for 2015-2030 includes a US$ 1.16 billion package over the period 2020-2030 of which US$ 516 million is related to a large scale renewable energy development programme.

About the DFCD

The DFCD enables private sector investment in projects aimed at climate adaptation and mitigation in developing countries. The Dutch Ministry of Foreign Affairs has made available € 160 million to increase the resilience of communities and ecosystems most vulnerable to climate change. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website

Expert

Tigere Muzenda

Regional Business and Investment Officer


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