A Framework for Economic Assessment of Construction and Demolition Waste Recycling Plant in Sharqia Governorate, Egypt

Abstract

The construction sector boom in Egypt in the last 10 years has led to unprecedented accumulations of Construction and Demolition Waste (CDW) across Egyptian cities. CDW annual generation is estimated at 40 million tons; besides accumulations from previous years, around 200 million tons are scattered mostly in informal dump sites within Egyptian Cities posing significant environmental and economic challenges. The government has launched major programs for solid waste management and regulations to encourage the private sector to establish and operate CDW recycling stations across Egyptian governorates. This study evaluates the technical and economic feasibility of a 200-ton/hour stationary recycling plant in Belbeis, Sharqia, East of Egypt. The study evaluates different scenarios for CDW recycling plants' establishment, including direct government investment and Public-Private Partnership (PPP) models.

The results indicate that the project is financially viable under both frameworks, though the PPP model demonstrates superior efficiency through enhanced risk-sharing and contribution of private sector expertise. Sensitivity analysis identifies three critical drivers of financial performance: market prices for recycled aggregate, administrative expenses, and total operational costs.

Ultimately, establishing CDW recycling facilities provides a sustainable solution to Egypt’s waste challenges, supporting resource conservation and circular economy principles even without strict incentives. These findings offer a scalable framework for policymakers to enhance investment decision-making, while future research should address advanced technologies and alternative partnership structures to further optimize the CDW sector.