The Project

Lagos Integrated Waste Facility

A four-component BOOT PPP concession platform in the Badagry Free Trade Zone, designed from the outset to meet the financing requirements of KfW IPEX-Bank and Euler Hermes ECA.

Platform Overview

Four Interdependent Components

The four SPVs are co-designed so each creates the technical and commercial conditions for the next — organic removal raises WtE calorific value; WtE power enables the Industrial Park; Industrial Park PPAs are the primary DFI revenue instrument for WtE financing.

Concession ModelBOOT PPP — Build, Own, Operate, Transfer
Phase 1 Capacity1,500 TPD MSW · 38–45 MW net baseload power
Phase 2 Capacity3,200 TPD · ~100 MW (with WAGP supplementation)
Primary LocationBadagry Free Trade Zone, Lagos State, Nigeria
EIA StatusTo be commissioned upon Conditional Concession Approval
Target FinancingKfW IPEX-Bank (senior debt) · Euler Hermes ECA cover
WtE TechnologyMartin reverse-reciprocating grate — CMPL EPC / Martin GmbH licence
STG SupplierSiemens Energy — co-development partnership · LTSA
Flue Gas TreatmentDry-type FGT: AC injection + bag filter + SCR per line
Emissions StandardEU IED 2010/75/EU — KfW / Hermes ECA benchmark
Phase 1 CAPEX~USD 350 million (indicative, subject to feasibility study)

SPV Architecture

Platform HoldCo — Lagos Circular PLC

SPV-A

Waste Transfer & Recovery Network

7 TLS · SW Lagos LGAs · DBFOMT with LAWMA · WSA portfolio = sovereign revenue floor

SPV-B

Anaerobic Co-Digestion Facility

BTA® wet process · LSWMO WWTP co-host · Biogas CHP · Digestate compost · SSA with LSWMO

SPV-C

Waste-to-Energy Plant

2 × 750 TPD Martin grate · Siemens STG · 38–45 MW net · EU IED emissions · KfW/Hermes ECA

SPV-D

Eco-Industrial Park

NEPZA FZE · Badagry FTZ · USD 0.07–0.09/kWh vs USD 0.30–0.40/kWh diesel · Tenant PPAs

SPV-A

Waste Transfer & Resource Recovery Network

SPV-A is the upstream logistics backbone of the LIWF platform. Seven Transfer Loading Stations across south-western Lagos LGAs provide the sorted feedstock streams that the downstream ACoD and WtE plant require.

At each TLS, incoming MSW is weighed, chain-of-custody logged, and separated into: organic fraction (sealed containers to ACoD within 24 hours), combustible/RDF fraction (compacted bales to WtE plant), recyclables (baled for secondary market), and inerts (engineered fill).

DBFOMT PPP with LAWMA as counterparty. Each LGA signs an individual Waste Supply Agreement (WSA) committing a minimum daily tonnage at an agreed tipping fee. The WSA portfolio is the sovereign-backed revenue floor required by KfW/Hermes for financial close.
TLS-1 — Badagry250–400 TPD · Primary feed node
TLS-2 — Ojo300–450 TPD · Southern corridor
TLS-3 — Amuwo-Odofin250–350 TPD · Near Oke-Afa WWTP
TLS-4 — Alimosho400–600 TPD · Largest LGA in Nigeria
TLS-5 — Agbado-Oke-Odo200–300 TPD · NW connector
TLS-6 — Ifako-Ijaiye200–300 TPD · Abesan corridor
TLS-7 — Ibeju-Lekki150–250 TPD · Phase 2 option
Total (indicative)~1,750–2,650 TPD
SPV-B

Anaerobic Co-Digestion Facility + LSWMO Partnership

SPV-B receives the organic fraction from the TLS network and co-digests it with dewatered sewage sludge from LSWMO's rehabilitated wastewater treatment plants, producing biogas (for on-site CHP), digestate compost for the Lagos agricultural market, and treated effluent.

Lagos Circular PLC proposes to rehabilitate the Oke-Afa WWTP (18,000 m³/day, built 1982, unrehabilitated) in Phase 1 and the Abesan WWTP (30,000 m³/day) in Phase 2 — at zero capital cost to LSWMO — in exchange for a Sludge Supply Agreement (SSA). The Oke-Afa Canal contamination crisis affecting Jakande Estate residents is resolved as a direct community health dividend of this arrangement.

LSWMO has sought private sector WWTP rehabilitation investment for years with no competing offer. Lagos Circular PLC offers rehabilitation at zero State capital cost in exchange for sludge supply — a commercially rational arrangement that resolves LSWMO's chronic underfunding problem.
TechnologyBTA® wet process anaerobic digestion (or equivalent)
FeedstockOrganic MSW from TLS network + dewatered sludge from LSWMO
Phase 1 WWTPOke-Afa — 18,000 m³/day · Built 1982 · Full rehabilitation
Phase 2 WWTPAbesan — 30,000 m³/day · Higher sludge yield
LSWMO AgreementSludge Supply Agreement (SSA) — LSWMO pays tipping fee per m³
Community BenefitOke-Afa Canal decontamination — Jakande Estate public health
SPV-C

Waste-to-Energy Plant

SPV-C processes the combustible MSW fraction and RDF from the transfer stations — after organic removal by ACoD — and converts them to baseload electrical power via grate combustion and a Rankine steam cycle. The plant is co-located with the ACoD facility and Industrial Park on the Badagry FTZ site.

Lagos municipal solid waste has a net calorific value of approximately 6–8 GJ/tonne as-received due to its high moisture and organic content. MBT pre-processing raises effective NCV to 9–11 GJ/tonne, achieving 38–45 MW net at Phase 1 throughput.

The Industrial Park (SPV-D) is built around the WtE plant's power output as its primary contracted offtaker. Anchor tenant Power Purchase Agreements are signed before WtE plant commissioning — making financial close achievable at a greenfield WtE site in Nigeria.
Phase 1 Config2 × 750 TPD Martin reverse-reciprocating grate combustion lines
Net Power (Ph.1)38–45 MW (25–27% steam cycle efficiency, tropical climate)
Net Power (Ph.2)~100 MW (additional WtE lines + WAGP gas supplement)
STGSiemens Energy — co-development partnership · LTSA
ECA EligibilityGerman content: CMPL (Martin GmbH) + Siemens Energy = Hermes cover
MBT Pre-treatmentMandatory — raises NCV from 6–8 to 9–11 GJ/tonne
SPV-D

Eco-Industrial Park

SPV-D operates within the Badagry Free Trade Zone under a NEPZA Free Zone Enterprise licence, offering manufacturing, logistics, and processing tenancies to industrial offtakers anchored by reliable captive power from the co-located WtE plant.

The power tariff arbitrage — between the WtE plant's LCOE of approximately USD 0.07–0.09/kWh and industrial diesel-equivalent cost of USD 0.30–0.40/kWh — is the primary tenant recruitment incentive. Signed industrial PPAs with Park tenants are the primary DFI revenue instrument for WtE project financing.

Target tenant sectors: Food & Beverage Processing (1–3 MW), Cold Storage / Logistics (0.5–2 MW), Pharmaceutical / Health (1–3 MW), Light Manufacturing (0.5–2 MW), Data Centre / Tech (2–10 MW), Construction Materials (0.5–1.5 MW).
Power TariffUSD 0.07–0.09/kWh (vs USD 0.30–0.40/kWh diesel equivalent)
Tax Holiday100% on profits — NEPZA FTZ incentive
Customs Duty100% exemption on imported equipment and raw materials
FX Repatriation100% — NEPZA Free Zone Enterprise
Land Sub-Lease25–99 year sub-lease from ZMC (Badagry FTZ)
DFI Revenue RoleIndustrial Park PPAs = primary revenue instrument for WtE financing

Implementation

Four Phases to Full Operations

Financial close target: Month 18 — driven by WSAs + PPAs + EIA completion

Phase 1A

Entry & Preparation

Months 1–8

  • ·NEPZA FZE registration
  • ·ZMC sub-lease execution
  • ·Commissioner engagement
  • ·LSWMO Oke-Afa MOU
  • ·LAWMA WSA framework
  • ·EIA commencement

Phase 1B

Construction

Months 8–30

  • ·MBT commissioned (M20)
  • ·ACoD Site A operational (M18)
  • ·TLS-1 + TLS-2 live
  • ·WWTP rehabilitation
  • ·WtE civil works
  • ·Industrial Park civil works

Phase 1C

Operations

Months 30–48

  • ·WtE Phase 1 COD (M36)
  • ·1,500 TPD · 38–45 MW
  • ·All 7 TLS operational
  • ·All corridor WSAs signed
  • ·5–8 Industrial Park tenants
  • ·WAGP connection live

Phase 2

Scale-Up

Months 36–60

  • ·WtE Phase 2 lines commissioned
  • ·~3,200 TPD · ~100 MW
  • ·Abesan WWTP Phase 2
  • ·Full industrial park capacity
  • ·USD 200–250M add. CAPEX
★ Financial Close Target: Month 18 | Requires: Conditional Approval + WSAs + Anchor PPAs + EIA commencement

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