IWMPP Project

About the Project

The Integrated Waste Management Processing Plant has the capacity to process up to 800 Tons Per Day of Municipal Solid Waste collected from Kota Kinabalu and the four districts. The waste recovered will be processed into various intermediary products that can be used in different industries.

Project Objectives

The objectives of this project are divided into three segments, focusing on economic, environmental and social sustainability, as highlighted below :

Project Highlights

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30-year concession agreement

  • Awarded a concession by the Sabah State Cabinet to operate and process up to 800 tonnes of Municipal Solid Waste and other incoming waste at the Kayu Madang Sanitary Landfill daily.
  • Successfully executed by the Mayor of Kota Kinabalu on behalf of Dewan Bandaraya Kota Kinabalu on 16 April 2018.

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Waste supply below RM15 per tonne (1)

  • Allows Borneo Waste Industries to obtain Municipal Solid Waste and other incoming waste at a cost below RM15 per tonne (1) of waste.
  • Enhances Borneo Waste Industries business model as the waste delivered to the landfill serves as raw material for Borneo Waste Industries.
  • First priority in receiving waste from the Kota Kinabalu, Kota Belud, Penampang, Putatan and Tuaran as stated in the concession agreement.

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At least 5 Years income tax exemption and 2% interest rebate

  • Eligible for various benefits and incentives such as the Pioneer Tax Status and Green Technology Financing Scheme due to the nature of Borneo Waste Industries operations and the industry in which it operates in.
  • A Pioneer Tax Status will provide an income tax exemption for a period of at least 5 years, whereas Green Technology Financing Scheme will allow Borneo Waste Industries to enjoy a 2% interest rate rebate.
  • Approached the Malaysian Investment Development Authority and the relevant authorities for the application of the incentives mentioned.
  • Able to operate with lower financing costs and a lighter tax burden for at least 5 years.

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Saving more than RM600,000 per annum in electricity cost

  • Participate in the solar Net Energy Metering Programme upon the installation of its rooftop solar panels.
  • Electricity savings from Borneo Waste Industries solar panels not only contribute to a greener planet, but also enhances the company’s profit margins.

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Recycled plastic waste equivalent to more than 800,000(2) plastic bottles daily

  • Effectively prevent 800,000(2) plastic bottles equivalent of plastic waste from being disposed at the Kayu Madang Sanitary Landfill daily through recycling activities.
  • Reduce the amount of time spent by plastics being buried in the Kayu Madang Sanitary Landfill by 500 years (degradation period of plastics) and generate a sustainable source of plastic products.

(1) RM/tonne = (Total payments to DBKK over concession period) (Total waste extracted at the material recovery facility over concession period)
(2) 1 tonne of plastic waste = 20,000 plastic bottles Source: “The ImpEE Project”, the Cambridge – MIT Institute.