Financing of Solid Waste Management Projects

waste-mountainFinancing of solid waste management projects can be pretty overwhelming for the city government, especially if the government see it as a critical part of the service they should render to the citizen and if the citizen also hold it as a basis for measuring the performance of the government and using it as one of the conditions for re-election.

Solid waste management entails different aspects. Generally speaking, waste management consists of pre-collection, collection, transportation, storage, treatment, and disposal. The modern hierarchy of waste management includes prevention, minimization, reuse, recycling, energy recovery, and disposal.

All these aspects require proper funding in rendering a good waste management service to the society. As citizens, we hardly give any thought to the different aspects and what it takes to ensure it is carried out efficiently and effectively.

Financing Options for Solid Waste Management

There are four different options for financing of solid waste management projects. The option chosen will be dependent on various factors. The chief factor will be “what is the end goal of providing waste management service to citizen” and this is to be determined by the city government. Therefore, we say finance option is directly related to waste management goal of a city or State.

Public Financing

This primarily involves funding of waste management service entirely by the government through budgetary allocation. The government determines how it will generate the cash for service and this can be through taxation or redistribution of funds generated from other sources like sales of city natural resources or combination of various sources of funds.

In developing countries, this is generally inefficient due to the corruption within the government and lack of proper waste management capabilities in most instances. The government might decide to charge a service fee or not.

Private Financing

This involves infusing funds from the private sector into waste management service and also overseeing day-to-day running of the service. However, the hired company will charge a service fee which will be determined by calculating the amount of invested funds, operating cost, and profit envisaged. This will be spread over a period of time.

This financing option can deliver optimal result in providing waste management service but the private sector needs to be checked in order not to set a high fee that will end up scaring citizens which might lead to citizen abhorring the service.

Public-Private Partnership (PPP)

This is a special type of arrangement which brings together the government and private sector in providing funds and management capabilities for the delivery of waste management service.

All things being equal, this arrangement is best because the government will be able to regulate and have a say in how the service should be delivered especially as it relates to the setting of service fees which might be difficult in the solely private financing option. The PPP can equally be extended to be a Joint Venture (usually termed as Institutional PPP).

Donors and Grants

This funding mechanism is dependent on the interest of the donor organization. While it is a good way to develop a city’s waste management infrastructure, attracting and utilizing grants is solely reliant on what the donor considers as important. Hence, it might be difficult for a city government to dictate how the funds should be distributed among the various aspect of waste management.

Waste management projects based on public-private partnership (PPP) model has more chances of success in developing countries

However, this type of financing can be combined with a PPP arrangement to cater for a specific waste management aspect that is in tandem with the interest of the donor and can be part of the city government contribution to the PPP.

Conclusion

In conclusion, waste management financing is quite dynamic just like many other services and infrastructure provided by a city government and the best option for financing the provision of waste management service can only be made after appropriate due diligence and consultation with relevant stakeholders has been made and observed.

Note: The original version of the article was published on Waste Watch Africa website at this link.

Waste Management Challenges in Developing Nations

Waste is the result of collective failure from public, legislative rules, lack of funds and technical support. Public awareness and proper knowledge of waste management and end use of different types of waste, health effects, environmental problems and economic issues that are related to waste management is very important for successful execution of any waste management related practices. Everyone needs to get better knowledge, proper understanding of waste management issues and their practices to curb it. Basic training needs to be initiated from governments in this regard, which can be very effective. Poor knowledge can make the best planned technique questionable.

The increasing cost of waste disposal is a cause of major concern in developing nations

In developing countries, participation level of most citizens in waste management is very low, with residents in urban areas are not actively involved in the process of waste management. Even though it’s low, but very beneficial for future prospect and for more meaningful involvement of majority of public in waste management practices.

People should be educated about sorting out waste based on their type e.g. recyclable waste, hazardous waste, green waste etc. Majority of people across the world are not aware of waste as recycling material, amazingly most of them think plastic is recyclable waste. Involving people who are unaware of waste management practice is extremely difficult.

In developing countries, practices of waste management are usually carried by poor, for their survival. It has been estimated that 2% of population in Asia, Latin America and Africa are dependent on waste for their livelihood. Family organized, or individual manual scavengers are often involved with waste management practices with very limited supportive network and facilities with increased risk of health effects. Also, this practice prevents their children from further education.

iraq-wastes

Despite the bad consequences, it should be kept in mind that this practice keeps them employed and provide livelihood in countries with high unemployed population. But measure need to be taken to provide their better lifestyles, social behaviour towards people involved in waste management practices, provide them with facilities to reduce their health-related risk and increase their working efficiency.

In developing countries, where government support for waste management is scarce, people need to come strongly against their local municipal office or government if they see things are not changing and stacks of waste are piling up. They should protest to protect their environment, health and keep living secure and healthy for their children.