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Waste Management
Volume 27, Issue 11, 2007, Pages 1531-1540
 
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doi:10.1016/j.wasman.2006.09.007    How to Cite or Link Using DOI (Opens New Window)
Copyright © 2006 Elsevier Ltd All rights reserved.

Evaluation of investments in recycling centres for construction and demolition wastes in Brazilian municipalities

K.R.A. Nunesa, Corresponding Author Contact Information, E-mail The Corresponding Author, C.F. Mahlerb, R. Vallea and C. Nevesa

aDepartment of Production Engineering, Federal University of Rio de Janeiro, C.P. 68507, CEP 21945-970, Rio de Janeiro, RJ, Brazil bDepartment of Civil Engineering, Federal University of Rio de Janeiro, C.P. 68506, CEP 21945-970, Rio de Janeiro, RJ, Brazil

Accepted 22 September 2006. 
Available online 27 November 2006.

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Abstract

There are very few construction and demolition (C&D) waste recycling centres in Brazil. To encourage the building and operation of new units, data were collected and analysed relating to C&D waste management and recycling in Brazil. Based on the results of this analysis, a conceptual model is presented for conducting viability studies of future C&D waste recycling centres.

Applying this model to verify the viability of private recycling centres, the results show that under current market conditions in Brazil, C&D waste recycling centres are not financially feasible based solely on revenue from the sale of processed products. Nevertheless, under the same market conditions, the recycling centres could be economically viable for public authorities depending on the particular circumstances of each municipality. The feasibility, however, depends on continuity and the production volume reached.

The conceptual model, the results of its applications and the discussions about the experiences of existing centres can strongly support public authorities and private initiatives in their decision-making about investments in Brazil and in other developing countries.

Article Outline

1. Introduction
2. Viability analysis: concepts
3. Methodology
4. Conceptual model: comparison between operating privately run and state run recycling centres
5. Results 1: Financial viability study for private enterprise recycling centres
5.1. Introduction
5.2. Estimate of costs
5.2.1. Fixed capital investment
5.2.2. Operational Costs
5.3. Investment analysis
5.3.1. The scenarios
5.3.2. Results of the analysis
5.4. Breakeven point
6. Results 2: financial viability study for public recycling centres
6.1. General information about the recycling centres under study
6.2. Estimate of costs and revenues
6.2.1. Fixed capital investment
6.2.2. Total operational costs
6.2.3. Revenues and savings
6.2.3.1. Revenues
6.2.3.2. Savings in C&D waste disposal and transport to landfills
6.2.3.3. Savings on acquisition of materials
6.2.3.4. Other savings and intangible benefits
6.3. Investment analysis
7. Comparison between results 1 and results 2
8. Conclusions and recommendations
References

Waste Management
Volume 27, Issue 11, 2007, Pages 1531-1540
 
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