Johannesburg’s R5.7 Billion Waste To Energy Project Gains Momentum With Invest International Grant

Source: Supplied. Mohale Rakgate, Chief Investment Officer: Infrastructure Fund.

Valued at approximately R5.7bn, the Alternative Waste Treatment Technology (AWTT) Project marks a significant milestone in South Africa’s transition towards sustainable waste management and renewable energy.

Implemented through a public-private partnership (PPP) between the Infrastructure Fund, the City of Johannesburg (CoJ) and the private sector, the project aims to divert at least 500,000 tonnes of municipal solid waste per annum - or 31 per cent of Johannesburg’s total annual waste - from landfill sites.

Waste powers Johannesburg

The project will comprise a dirty Materials Recovery Facility (dMRF) and a Waste-to-Energy (WtE) facility that will be designed, built, financed, operated and maintained by a private-sector partner over a 25-year concession period. Ownership of the facilities will ultimately revert to the CoJ at the end of the agreement.

Through the conversion of residual waste to energy, the project will generate approximately 28 megawatts (MW) of electricity — enough to power 60,000 households — while enabling the recovery and recycling of 175,000 tonnes of waste each year. This initiative will extend the lifespan of existing landfill sites, reduce methane emissions, and align the city’s operations with international environmental and emissions standards.

Catalysing sustainable urban development

The AWTT Project represents a strategic step for both the City and the country in adopting circular-economy principles and climate-resilient waste-management solutions. The blended-finance model demonstrates how public- and private-sector collaboration can deliver large-scale infrastructure off municipal balance sheets, unlocking both economic and environmental value.

The R550m grant from Invest International will assist the City in fast-tracking project implementation, improving affordability through reduced gate fees, and advancing the initiative to the procurement phase to appoint a preferred bidder.

“The Infrastructure Fund continues to demonstrate how innovative financing structures can address municipal infrastructure challenges at scale,” said Mohale Rakgate, Chief Investment Officer: Infrastructure Fund.

“This project not only supports Johannesburg’s waste-management and energy needs but also illustrates how blended finance can unlock transformative, sustainable solutions for South Africa’s cities. As the Infrastructure Fund in partnership with the DBSA’s Project Preparation Division, we continue to work with our partners across South Africa in finding sustainable solutions that serve generations to come.

“The City of Johannesburg appreciates this funding milestone from Invest International, as it will assist the City in promoting the waste hierarchy through recycling, extending the life of existing landfills by diverting municipal solid waste to a waste-to-energy facility, complying with Cop27 emissions standards and objectives, and, most importantly, generating energy for the residents of the City,” stated City of Johannesburg Mayor Dada Morero.

“The Kingdom of the Netherlands is proud to be able to contribute to the sustainable economic development of South Africa, specifically the City of Johannesburg through this flagship project using a grant, implemented on behalf of the Ministry for Foreign Trade and Development Cooperation of the Netherlands through Invest International,” said Minister of Foreign Trade and Development Cooperation Aukje de Vries.

A model for other municipalities

Lessons from the AWTT Project are expected to inform similar initiatives in other municipalities facing waste-management constraints. It serves as a model for leveraging concessional funding, private-sector participation and innovative finance to deliver critical infrastructure within fiscal limits.