When we invest in a particular project, we ensure three key criteria are met:
- The project must involve proven technology
In the case of the MWM EIS, Mariana and our external project consultants, are confident the infrastructure used to dispose of/treat the waste has a track record of performing to high operational standards.
- The project must have a known cost base
In the case of the MWM EIS the cost of installation, operation and maintenance of the assets are predictable. This is an important factor in reducing investment risk as cost parameters are largely defined at the start of the Investment.
- The project must deliver a long-term, predictable return
The long-term contracts will mean that returns can be estimated at the point of investment. The waste management contracts will stipulate the minimum amount of waste that the Investee Companies will process during the contract’s term at an agreed price per tonne that they will be paid for its disposal. Given the costs and revenues are set under long-term contracts with reputable counterparties, returns from this investment should be relatively predictable.