4.3 Economic Analysis
The investment and operation costs of composting technology were estimated to be 5,700 US$ and 600
US$ per year, respectively. The investment cost included land costs and miscellaneous expenses, while
the operation costs covered all operating expenses and labour. The incineration and gasification
technology had an investment cost of 93,000 US$ covering the RDF preparation unit, the downdraft
gasification unit, and the controlled air incineration unit. The operation and maintenance cost was
calculated to be 5,405 US$ per year, which included operating expenses, labour, and other expenses. As
soil-conditioning/fertilizer is a product of composting, it can be sold. According to the conceptual design,
25 tons per year of soil-conditioning/fertilizer can be produced, which equals the revenue of 1,700 US$
per year. If the LAO invest in composting technology, the revenue will cover all expenses for 5.5 years
(payback period of 5.5 years). In contrast to incineration and gasification technology, which has high
investment and operation costs, with no revenue except for tipping fees, if the LAO borrows money for
investing in this technology, the LAO will see a return on expenses in 14 years, with a tipping fee of 17
US$ per ton. However, this tipping fee is too much for the local community, and therefore it is suggested