Cost assessment of the Brazilian construction and demolition waste recycling plant : a case study of Porto Alegre

Abstract

The construction activities generate representative amount of Construction and Demolition Waste (CDW) around the world. Brazilian City Halls collected about 45 million tons/year. CDW recycling plants needs to be economically viable. The characteristics of recycling plants and future expectations vary around the world. Thus, the cost analysis needs to be adapted to the local reality and future scenarios should be evaluated. In this context, the objective of this paper is to evaluate the CDW recycling plant costs in Brazil. Two scenarios are tested, actual Scenario (1) and future Scenario (2), with air jig. Four steps are performed: literature review, inventory of the inputs, economic indicators analysis, and sensitivity analysis of alternative solutions. The results suggest that both scenarios do not reach positive economic indicators (IRR, NPV and Payback). The Fixed Costs are the main influence on the results, mainly due to the acquisition of Equipment. The Variable Costs represent, in Scenario 1 and 2, 18% and 10% of their Total Fixed Costs, respectively. Scenario 1, however, has possible conversion into positive IRR easier than for Scenario 2, once the Air Jig influence significantly in the increment of costs. A Government subsidy tested would not make the CDW Recycling Scenarios economically attractive. Only Scenario 1 can achieve positive results, however without the acquisition costs of Land, Equipment and Vehicles. Counterparts with the City Hall, in exchange for the supply of these inputs, would not influence the positive results. The use of new technologies maybe will be possible after the recycled aggregate market is consolidated in Brazil.