PRIVATE SECTOR PARTICIPATION IN SOLID WASTE MANAGEMENT

By

Selby DaBreo

OECS SOLID & SHIPPGENERATED WASTE MANAGEMENT PROJECT

SYMPOSUM ON SOLID WASTE MANAGEMENT IN THE OECS: PAST,PRESENT AND FUTURE

GRENADA GRAND BEACH RESORT

JUNE 4 – 6, 2003

History

Service provided through departments of Health\Public Works

Lack financial autonomy Substantial inefficiencies Shortage of technical staff Low service coverage 10% to 40% High operational cost 0.7% - 2.6%GNP compared

to 0.2% to 0.5% in high income countries Waste discharged in open dumps

Open burning Waste picking for recyclables Animal scavenging Environmental problems

Responsibility Public cleanliness and safe disposal essential

to public health and environmental protection Public good Government responsibility Government not required provide service with

its own staff,equipment or monies Ensures service is provided,reliable,efficient

and protects the environment Shift of focus towards monitoring and

enforcement

Private Sector involvement

Improve efficiency and lower cost Greater attention to customer

satisfaction Flexible financing Motivated by accountability,

competition and contractual agreement Better control of work force Less restrictive by bureaucracy

Considerations before Private Sector Involvement

Cost recovery Efficiency Public

accountability Management

Finance Economies of scale Legislation Institution Cost

Method of Participation Contracting Concession Franchise Open competition

Population and Housing Census- 2001

Parish No. of Households

Estimated Population

St.George 11176 37057

St.John’s 2804 8591

St.Mark’s 1271 3994

St.Patrick’s 3473 10674

St.Andrew’s 8043 24749

St.David’s 3351 11486

Carriacou and Petite Martinique

2226 6081

TOTAL 32344 102632

Policy Towards Private Involvement

Established Legislative framework relatively quick

Private sector participation

OECS Project Grenada Solid Waste Management

Act 1995 Transfer of responsibility to GSWMA Introduction of Levy Reduced government involvement in

provision of solid waste services

GSWMA’s approach Greater private sector participation System inherited- dilapidated, poorly

maintained vehicles Urgent need for improve and extended

collection service customer satisfaction Reduce impact on the environment

Negative Aspects of Transfer

Labour and social issues Redundancy Severance pay Re-employment User fee

Methodology

Establishment of GSWMA

Zoning of the country Open competition for

service contracts Provision for the re-

employment of workers Aggressive public

information\ education programme

Results Increased coverage 55% to 97% Significant capital investment in

collection vehicles, 400% increase Customer acceptance Cost recovery did not marginalized

any sector of society Efficiency attributed to motivation,

accountability and competition

Private sector participation as possible opportunity not a panacea

Will be efficient and costly if there is reason

Reduce government involvement e.g pay role

Cost Recovery Basis for financial sustainability Environmental Levy Act of 1997

Environmental LevyPersons, Goods or Services

Persons Liable Responsible for collection

households occupier Electricity company

vehicles importer Customs

White goods importer Customs

Beverage containers importer Customs

Tipping service Owner\operator of business

GSWMA

Stay over visitors visitor Airport Authority

Marine visitors Shipping agent Ports Authority

Lessons from Grenada’s Approach

Need for proper management at operational stage

Competitive tendering Educational and promotional programmes to

facilitate the process Cost recovery must be accompanied by

reliability and efficiency of service to gain acceptance

Regional approach has aided the process

Negative encountered

- Reluctance of users to pay for service not implemented at

inception

- Attitude of households towards contractors