The project (Planning Grant) was funded to determine the feasibility of establishing a profitable recycling plant in Saint Lucia. The project proceeded in two basic stages as follows: (i) A Feasibility Study; and (ii) The preparation of a Business Plan.

The feasibility study examined the need for a recycling plant in Saint Lucia; sources of recyclable material; the categories of waste and the percentages of each category as part of the national waste stream; the external markets; the best location for the facility; and the most cost effective means of collecting the waste. The study also looked at three options for establishing the facility as follows: (i) Lease and operate the facility at XCD$3000 (US$1111) per month; (ii) Construct and operate a facility; and (iii) Public/Private Partnership between the SLBWA (grantee) and the Saint Lucia Solid Waste management Authority. The Results were as follows: Option 1 had an IRR of 2.16%; Option 2: 4.28%; and Option 3: 18.36%. The study concluded that the recycling market in Saint Lucia was large enough for an additional processing plant and that the most viable option was for a Public Private Partnership. (Title of Study: Feasibility Study for a Material Recovery Facility - Prepared for the Saint Lucia Blind Welfare Association with Funding Assistance from the GEF Small Grants Programme - Prepared by BEEQ Inc.).

The Business Plan concluded that the grantee should establish a Limited Liability Company called the SLBWA Recycling Ltd and that the main keys to success were as follows: (i) Secure Supply- Contract for supply of post-consumer bottles and other recyclables; (ii) Effective Public Education and Awareness to change behaviour, expand the market and increase share of the market; (iii) Marketing - Contractual arrangements for the sale of virtually all initial production. (iv) Management - Strong senior management with extensive, broad-based, industry-specific experience; (v) Support from the GOSL through the SLSWMA; and (vi) Support from other donor agencies.

The business plan also outlined the potential risk as follows: (i) Unavailable or scarce raw material feed stock for production; (ii) Technology employed may be unreliable; (iii) There may not be a market for the Company's products; (iv) The location where markets exists are distant and have high shipping cost; (v) The Company may not be able to attract capable management; (vi) Company may not meet environmental standards; (vii) The Company may not be able to sell all of its production capability; and (viii) The Company may not be able to obtain the required funds at a reasonable cost to make the venture viable. (Title of Business Plan: Business Plan for Recycling Facility for the Saint Lucia Blind Welfare Association Recycling Company Limited - Funded by SLBWA and GEF SGP UNDP. - Prepared by BEEQ Inc.).

The Planning Grant proved that establishing a recycling operation was feasible but required knowledgeable and skilled individuals with a significant start-up capital, estimated at XCD$642,470 (US$237,952), and that the least cost method was a Public Private Partnership.

Lessons Learned by the Grantee:

They included the following: (i) Cast a very wide net to attract as many consultants/facilitators as possible and depend less on recommendations - the grantee strongly believes that the mass media should have been used in that process; (ii) Include a penalty clause in the contract to reduce the delays in reporting by the consultants/facilitators; and (iii) Undertake more detailed planning to avoid being overly ambitious with the workplan.