Daniel Iglesias- CARE Carlos Villar- Hinsilblon Buenos Aires, Argentina

ARGENTINA: GENERAL INFORMATION Capital: Buenos Aires Population: 40MM 35% lives in BA and suburbs Surface Area: 2.8 Mio Km² Currency: ARPeso Exchange Rate: AR$ 4/US$ 1 Income Tax Rate: 35% GDP: 320 Billion US$ Inflation Rate: 10% - 30% Unemployment: aprox. 12% International Reserves: US$ 55 Billion Public Debt: US$ 150 Billion 2

POLITICAL AND ECONOMIC ENVIRONMENT Country governed by Peronist Party Kirchner couple since 2003 They brought economic and political stability after 2001 crisis: GDP grew 7/9% annually, then affected by international crisis Full utilization of industry capacity and low investment Inflation is becoming an issue closed the gap of a competitive exchange rate High prices of commodities gave cash for high public spending and an uncontrollable system of subsides to support cheap energy tariffs Holdouts second round and Paris Club Negotiations Former president Mr. Kirchner s death opens a new political game for next year s elections 3

THE FRAME FOR ENERGY INDUSTRY Energy Matrix highly dependent on Gas (49%) and Oil (41%) Energetic Crisis is generating recovery of energy prices Government is implementing a series of plans to encourage investment by guaranteeing higher prices for oil, gas and electricity Federal, provincial and municipal authorities tremendous problems in solving MSW treatment BA and suburbs b generate 17,000 tons/day of MSW are facing The country has an excellent condition from an input generation standpoint Alternative Energies will lead investment in the coming years 4

ABOUT HINSILBLON The company was founded in US in the 90 s becoming a worldwide leader in Odor Control Presence in more than 50 countries and 20 years experience Hinsilblon South America is an independent company created to develop the market not only for air pollution control but for all activities related to Alternatives Energies and Environmental Important presence in Argentina, Brazil, Chile, Uruguay and Paraguay with awide portfolio of contacts and relationships at private and public level Hinsilblon management counts with a large experience in the energy industry and solid wastes management 5

ALTERNATIVE ENERGIES Hinsilblon is involved in different projects in South America working closely l with authorities and technology owners We are permanent consultants of OPDS (Buenos Aires Province Environmental Secretary) Advisors for Buenos Aires City District Environmental Ministry. Looking for alternatives to process 5000 tons per day of MSW Currently we are advisors of CARE (Centro Ambiental de Reconversión Energética) a joint project managed by Argentina Federal Government and La Matanza Municipality. Separate presentation A cooperation agreement was subscribed with IfaS for joint development of projects in the region 6

WHY SOUTH AMERICA? WHY ARGENTINA? International economy situation is redirecting investment to the region Brazil will be the engine and countries such as Chile, Peru, Colombia and Uruguay offer security conditions for investment Argentina is giving the signals the industry and private investors were claiming: Negotiation of public debt, giving a frame for unions claims, open dialogue with private companies Higher energy prices for alternative generation (e.g. new investment in solar, wind, biomass and waste-to to-energy can get prices in the range of US$ 80-120 per Mwatt) Alternative Energies are a new dilemma for the region. Need education, time for development and investments encouragement 7

MATANZA S MUNICIPAL SOLID WASTE CIRCUIT STORAGE IN ORIGEN Storage in plastic bags Storage in containers for bigs generators and specific areas DOMESTIC WASTE COLLECTION Municipal or Private Service INFORMAL COLLECTION Scavengers (Waste pickers) (People who select papers, plastics, metals, etc.) 1.360 t / day to the LANDFILL SELECTIVE COLLECTION Sellective collection programs with Recycling NGO s

C.A.R.E. Facilities Buildings (Bunker s Waste Receptor, Sorting Plant, Storage Of Recyclables Materials, Truck s Station To Transfer Waste To The Landfill (TEMPORARY TRANSFER) EUR$ 18.000.000 INSTALATION OF TRANSFORMATION WASTE TECHNOLOGIES EUR$ 91.000.000 LANDFILL CLOSED

(MSW generates from the Municipality)

Environmentally friendly technologies which will produce synthetic fuel and electricity will be installed in accordance with law. These technologies will receive organic waste and RDF with a caloric value of 5,000 Kcal/Kg and less of 10% humidity.

FEDERAL PLANNING AND PUBLIC INVESTMENT MINISTRY SECRETARY OF ENERGY ENARSA S.A. (State Owned Energz Co.) LA MATANZA ENVIRONMENTAL MINISTRY

MAIN OBJECTIVES NO MORE Landfills To reduce transportation costs. To reduce emissions i and fossil fuel consumption. 300-500 new work positions. To generate renewable energies. To be the first Center of integrated domestic waste management ti in Argentina. To be a model for other Provinces in Argentina.

Similar facilities for sorting and RDF(first stage) g) production are located in: Finland Rome, Italy Australia Poland Thailand Sao Paulo, Brazil (under construction)

Similar facilities for MSW transformation (second stage) are located in: BRESCIA PAVIA, ITALY MONTERREY, MEXICO MAIN, USA TARRAGONE, SPAIN DRESDEN, GERMANY

It s included in both stages Estimated investment: 0,7 % of the overall projet

Prof. Dr. Peter Heck General Director of IfaS (Umwelt-Campus Birkenfeld, Germany) Dra. Ing. Silvia Daniela Romano Director of Renewable Energy Group- Buenos Aires University and Expert of CONICET (National Council of Sciencies and Technics Research) Argentina Ing. Raúl Gabutti Responsible of National Program of Rational and Efficient Use of Energy (PROUREE) Director of National Technologic University, Buenos Aires Argentina