SAO

The company SAO owns the waste dump located in the municipality of Orvieto and manages urban and special waste.

The following events took place in 2012:

  • in compliance with the resolution of the SAO Board of Directors in March 2012, the disposal of the street cleaning services business unit, considered no longer strategic to the company’s development plans, was completed with effect from 1 May 2012;
  • in April 2012, the company successfully passed an audit regarding confirmation of environmental certification UNI EN ISO 14001:2004 and the EMAS certification, as well as the safety certification OHSAS 18001:2007;
  • to carry out the revamping of the Orvieto plant in compliance with authorisations issued by the competent Authorities, from 3 March 2012 the treatment to recover the organic and green fraction from separate waste collection was performed by duly approved third party plants, and from 2 April 2012 the regular transfer of non-separated solid urban waste was guaranteed by means of an alternative treatment. On 4 June 2012, the company confirmed its intention to the Provincial Government of Terni to postpone the revamping works on the Orvieto waste treatment plant to the second half of 2013, with start-up of the new plant in January 2014. The postponement became necessary as a result of persisting uncertainties in that period regarding the planning at ATO level and renewable sources incentives. That postponement made it necessary to carry out a number of extraordinary maintenance works, strictly necessary to restore the existing treatment plant to working order. Those works were completed on 16 July 2012. On the same day, the existing plant began operating normally once again, and therefore the alternative treatment of solid urban waste and treatment at third party plants to recover the organic and green fraction from separate waste collection ended. In a notice of 20 September 2012, the Waste Management, Emissions and Integrated Environmental Authorisation service of the Province of Terni asked SAO to confirm the timing for carrying out the revamping work on the waste treatment plant, which the company had reported to that Authority on 4 June 2012. On 28 September 2012, in a note dated 12 October 2012, SAO confirmed to the Province that the revamping works at the Orvieto waste treatment plant will begin in July 2013, with the launch of commissioning and start-up activities in January 2014, without prejudice to unforeseen events or force majeure, so that the new plant can be phased in by the end of August 2014;
  • in July, the works to complete the 9th step of the operating waste dump were completed and passed inspection. Those works constitute the first activity set forth in the project for the “REVAMPING OF THE WASTE TREATMENT PLANT AND EXPANSION OF THE NON-HAZARDOUS WASTE DUMP”, approved by the Province of Terni in Integrated Environmental Authorisation of 11 August 2011;
  • on 21 August, a request was submitted to the municipality of Orvieto for the declaration of urban planning compatibility relative to the screening procedure for the realisation of a clay pit at the SAO plants in Orvieto, pursuant to art. 21 of Umbria regional regulation no. 3/2005 for the satisfaction of extraordinary requirements for the management of the operating waste dump. On 20 September 2012, the municipality of Orvieto requested an opinion from the competent offices of the Umbria Region in relation to the application submitted by SAO. On 19 December 2012, the same municipality, acknowledging the opinion issued by the Regional offices, issued a warning that a refusal would be issued, in which it expressed a negative opinion in relation to that application. On 28 December 2012, the company responded to the pre-warning of refusal noted above by making its own observations so its application could be reviewed. The company is currently awaiting the decisions of the municipality of Orvieto;
  • with resolution of 2 August 2012, the General Meeting of the ATI adopted the Area Plan for integrated urban waste management. The Plan proposal was then sent to the boards of the municipalities included within the ATI to obtain their opinion, and it was published in the Umbria Region Official Gazette of 2 October 2012 so that comments and contributions could be sent by interested parties within 60 days of publication. On 26 November 2012, SAO sent the ATI its comments concerning the plan adopted. Please recall that in April 2012, ATI 4 asked SAO and ASM Terni to once again review the Economic-Financial Plan of the respective projects on the basis of different waste flows and a different plant setup. In particular, as regards SAO’s activities, ATI4 requested a review of the Economic-Financial Plan considering the transfer to and disposal at the Orvieto waste dump of all combustible dry waste deriving from the selection of mixed solid urban waste, to replace Special Waste. The company completed the review of the Economic-Financial Plan with the support of the competent Parent Company structures and submitted said documentation to ATI4 on 11 July 2012. With its note of 13 July 2012, ATI4 asked SAO to incorporate some percentage decreases relative to the amount of works into the aforementioned Economic-Financial Plan. This occurred as a result of ATI 4’s verification of the consistency of the prices applied and contained in that Economic-Financial Plan, beginning from an analysis of the average decreases applied in Umbria. On 16 July 2012, SAO sent the ATI that additional revision and, with the support of the competent Parent Company structures, verified the profitability of the works set forth in the projects authorised by the applicable Authorities with the additional amendments requested by ATI4. The waste transfer tariffs relative to the last revision of the Economic-Financial Plan are reported in the Area Plan adopted by the General Meeting of ATI4 mentioned above. On 17 October, ATI4 of Umbria asked SAO and ASM Terni to prepare and send an additional update to the Economic-Financial Plans relative to their own plants, in order to include the additional costs set forth in paragraph 2, art. 40 of Regional Law no. 11/2009, the amounts of which are specified in the recently published Area Plan adopted by the General Meeting of ATI4. The company prepared the additional requested update and sent the same documentation to the ATI on 11 December 2012, while cautioning the same Authority to complete the tariff revision procedure launched in September 2011 with the direct application of the new tariffs beginning in January 2013. Following the adoption of the Area Plan, communications began between the operators of urban waste treatment and disposal plants and ATI4, in order to prepare the contractual documentation relative to waste management;
  • on 23 August 2012, at the headquarters of the province of Terni, the first meeting of the services conference regarding upgrading the plant for the utilisation of biogas energy produced by the Orvieto waste dump was held. An application to obtain a single authorisation pursuant to art. 12 paragraph 3 of Legislative Decree no. 387 of 29/12/2003 as amended and supplemented was submitted to the competent Authorities by I.C.Q. Holding S.p.A. of Rome which, it should be recalled, is the current owner, holder of the authorisation and operator of that energy recovery plant for which upgrading is requested. Another meeting of the services conference was held on 8 October 2012 regarding the issue of the single authorisation to upgrade the plant for the utilisation of biogas energy produced by the Orvieto waste dump. During that meeting, a preliminary favourable opinion was expressed with the right to order the closure of the conference with a definitively favourable opinion, without calling another session, if the procedural opinions/authorisations yet to be issued are also favourable. On 31 October 2012, the province of Terni issued the authorisation measure to ICQ, which conducted the upgrading works, and with ENEL completed the connection to the national electricity grid on 28 December 2012. ICQ is currently carrying out works to update the biogas collection network at the level of dump land treatment;
  • on 3 September 2012, extraordinary maintenance works commenced on the closed and converted waste dump located in the aforementioned plant complex. The works are currently underway.
  • on 16 January 2013, with Resolution no. 2, the Umbria Region ATI no. 4 General Meeting approved the Area Plan for the Integrated urban waste management service, pursuant to Regional Law no. 11/2009. For more information, please see the section “Significant Events after the balance sheet date”.

Finally, the company legal format was transformed to a limited partnership.

The quantities of waste input and treated at the Orvieto plants in 2012 is reported below, as compared to 2011.

  measurement unit Year 2012 Year 2011
SOLID WASTE ATO 4 tonnes 7,295 6,638
Solid Waste extra ATO 4 tonnes 32,845 22,942
Solid Urban Waste Orvieto tonnes 9,504 9,863
Solid Urban Waste Orvietano Area tonnes 9,822 9,926
Solid Urban Waste Amerino Area tonnes 5,374 5,702
Solid Urban Waste Ternano Area tonnes 17,564 1,190
Terni org. waste from selec. plants tonnes 16,052 23,730
Org. waste from sorted collection tonnes 11,169 7,868
Sludge tonnes 7,705 6,420
FSC (dry waste) from sel. plant Terni tonnes 21,785 33,604
ASM Terni pieces tonnes 899 1,842
Bulky solid urban waste tonnes 2,917 4,068
TOTALS tonnes 142,931 133,793

The figures above show that quantities transferred totalled roughly 9 thousand tonnes more than the final value in 2011.