Bernama.com (Malaysian National News Agency), 08 December 2006

RM78 mil Biodegradable Plant in Papar

KOTA KINABALU, Dec 8 (Bernama) -- A biodegradable processing plant costing RM78 million will be built on a four-hectare site in Papar, about 40km from here.

The plant, to be built by AGSB Bio-Recovery Sdn Bhd, will use a special bacteria purchased from a Canadian company, International Bio Recovery Corporation, its managing director Mohd Taufik Nordin said at a signing ceremony for collaboration with 11 local councils, here Friday.

Also present was state Housing and Local Government Minister Datuk Hajiji Noor.

Mohd Taufik said the use of biotechnology would not emit any smell nor dangerous gas.

The processed rubbish would be ground into liquid before it is sent for drying to become organic fertilizer for usage in the agriculture sector, he said.

Asked when the plant will be built, Mohd Taufik said: "It depends on the environmental impact assessment report by the Department of Environment."

Commenting on the project, Hajiji said the plant would reduce the quantity of rubbish and it was a good move as there was no financial implication involved to the state government and the local councils.

"This means the company will bear all infrastructure costs including the RM78 million plant," he said.

Mohd Taufik said the company's income would be generated from the sales of the organic fertilizer.

He said returns from the investment is expected within seven to nine years because organic fertilizer has a good market overseas.

As such, he said the collaboration with the 11 local councils is important in order to get consistent supply of 250 tonnes of rubbish for the production of organic fertilizer.