To be honest, DIY is not necessarily always the best, not even just a good solution...
Apart from the fact that I personally think it looks very amateurish, you especially have to pay attention to what Neige already said: the edges will swell if you don’t seal them very well. I know such a hole in the countertop only for bio-waste and there is a bucket hanging underneath with a very good lid closing the hole. That makes sense too, because unfortunately any waste tends to start smelling quite quickly depending on the weather. Therefore, I consider a solution with a hole in the lid to be bad anyway. Unless you have another lid up your sleeve. After all, you wrote something about a nice lid. But that’s not the one shown in the picture, is it? The frame to place the bags on is also a bad solution. Unfortunately, sharp objects often end up in the trash and it has probably happened to almost everyone that such a trash bag became leaky and stuff, unfortunately mostly smelly, ran out. What a blessing from God if that happens in a sealed bucket and not dripping onto a technically questionable wooden construction.
My honest tip: buy a new countertop, install a finished, PRACTICAL waste system underneath. If you absolutely want to do some handiwork with the waste disposal, then build a door system that can be opened with a step. Also very practical, no odors wafting through the kitchen and no risk of damaging the countertop.
And finally a little experience from the owner of the kitchen with the hole for bio-waste (by the way in a non-swelling granite countertop): She hardly uses it anymore because 1. unfortunately not only waste falls into the hole, but now and then objects that should not go in there find their way in the heat of the moment (and then had to be fished out of the bio-waste again; very tasty...) 2. despite a well-closing lid, the waste unfortunately started smelling very quickly and in the end it was much easier and more practical to just place a bowl whose contents could be taken and disposed of at the end of the day or after cooking, the bowl goes into the dishwasher, and that’s it. That’s much faster than taking out the bucket below, emptying it, cleaning it (important because of the smell!) and putting it back in.
So I absolutely cannot recommend the system and even less so in this unprofessional execution.