14 financial and economic aspects 1/13 content of lecture 14.1 costs of solid waste collection,...

14 Financial and Economic Aspects14 Financial and Economic Aspects

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Content of LectureContent of Lecture

14.1 Costs of solid waste collection, sorting and processing14.1 Costs of solid waste collection, sorting and processing

14.2 Benefits of managing solid waste14.2 Benefits of managing solid waste

14.3 User fees and fee collection14.3 User fees and fee collection

14.4 Benefits of waste reduction and recycling14.4 Benefits of waste reduction and recycling

14.5 Job opportunities in SWM14.5 Job opportunities in SWM


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Rising population and MSW:Rising population and MSW:

the globally generated MSWthe globally generated MSW

In 1990, - 1.3 billion metric tons In 1990, - 1.3 billion metric tons

Presently- 1.6 billion metric tons Presently- 1.6 billion metric tons

Money for managing the MSW:Money for managing the MSW:

• In the Early 1990s - Asian countries spent about US$25 billion/yr In the Early 1990s - Asian countries spent about US$25 billion/yr

• By the 2025- - this will rise to around US$50 billion/yr. By the 2025- - this will rise to around US$50 billion/yr.

Hence, SWM has become a large, complex & costly service Hence, SWM has become a large, complex & costly service

14.1 Costs of waste collection, sorting & processing14.1 Costs of waste collection, sorting & processing

BackgroundBackground


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MSW management consumes a high percentage of the MSW management consumes a high percentage of the municipal budgets, for example:municipal budgets, for example:

• In Malaysia, an average of 50% of the municipal budget is spent onIn Malaysia, an average of 50% of the municipal budget is spent on

MSW, and of this, 70% is spent on collection. MSW, and of this, 70% is spent on collection.

To develop an integrated and cost-effective MSW management To develop an integrated and cost-effective MSW management system, individual components of the system should be:system, individual components of the system should be:

• chosen so they do not overlap or compete excessively chosen so they do not overlap or compete excessively

• sized to handle the portion of the waste optimallysized to handle the portion of the waste optimally

• located so that transportation costs are minimumlocated so that transportation costs are minimum

• owned, operated, and financed to minimize overall public costsowned, operated, and financed to minimize overall public costs

• administered by appropriate agencies, with adequate public oversight administered by appropriate agencies, with adequate public oversight



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Case StudyCase Study : costs of MSW management in an Egyptian settlement : costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (1/3) Rosetta region, Nile Delta (1/3)

• Total 17 human settlements (one urban and rest are rural) Total 17 human settlements (one urban and rest are rural)

• total population of the region: 191,686 (2005). total population of the region: 191,686 (2005).

• average household size: 4.5 to 7.4average household size: 4.5 to 7.4

Municipal authorities have the responsibility for providing SWM service Municipal authorities have the responsibility for providing SWM service

•one truck and few personnel collects the waste infrequentlyone truck and few personnel collects the waste infrequently

•solid waste generated, 32.54 tons/day, either infrequently collected or solid waste generated, 32.54 tons/day, either infrequently collected or just dumped illegallyjust dumped illegally



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Case StudyCase Study : : costs of MSW management in an Egyptian costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (2/3)settlement Rosetta region, Nile Delta (2/3)

Fleet needed to handle the generated SMW:Fleet needed to handle the generated SMW:

• 5-ton trucks working on the main streets : 20 tons/day5-ton trucks working on the main streets : 20 tons/day

• 1.1-ton trucks covering more remote and narrow internal streets (with 1.1-ton trucks covering more remote and narrow internal streets (with transferring loads to larger trucks): 26.4 tons/daytransferring loads to larger trucks): 26.4 tons/day

• Landfill: 1.62 ha plot has the capacity to accept 4.77 yr of MSW in the Landfill: 1.62 ha plot has the capacity to accept 4.77 yr of MSW in the area.area.



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Case StudyCase Study : : costs of MSW management in an Egyptian costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (3/3) settlement Rosetta region, Nile Delta (3/3)

Annual costs of this SWM systemAnnual costs of this SWM system (including depreciation, sanitary landfill (including depreciation, sanitary landfill preparation and rehabilitation, and operational costs) was estimated as preparation and rehabilitation, and operational costs) was estimated as $300,000$300,000

•Costs could be totally covered by the locally raised funds. Costs could be totally covered by the locally raised funds.

•The willingness to pay was estimated as- The willingness to pay was estimated as- $550,000$550,000. .

•Profitability of the service: rate of return on investment vary 59.6% to Profitability of the service: rate of return on investment vary 59.6% to 57.4%. 57.4%.

•MSW service could be financed locally and could represent a MSW service could be financed locally and could represent a profitable business. profitable business.

•could be provided either by a small-scale firm, a local cooperative or could be provided either by a small-scale firm, a local cooperative or an NGOan NGO



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Example:Example: Latin American model for integration of small-scale Latin American model for integration of small-scale waste collection enterprises with the formal waste collection waste collection enterprises with the formal waste collection

Enterprises Enterprises

• paid by the municipal authorities or by a community paid by the municipal authorities or by a community

• provide collection using man powered or semi-motorized cartsprovide collection using man powered or semi-motorized carts

• serve hilly areas marginally or not served et al where collectionserve hilly areas marginally or not served et al where collection trucks cannot reach.trucks cannot reach.

• low cost of equipment and administrative costs are minimal, low cost of equipment and administrative costs are minimal,

• operation and maintenance of the equipment is simple andoperation and maintenance of the equipment is simple and inexpensiveinexpensive



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Benefits of managing solid waste are:Benefits of managing solid waste are:

Achievement of local, regional, and state solid wasteAchievement of local, regional, and state solid waste

reduction/diversion goals. reduction/diversion goals.

Savings on landfill space. Savings on landfill space.

Savings on energy. Savings on energy.

Reduction of water pollution risks. Reduction of water pollution risks.

Conservation of natural resources. Conservation of natural resources.

Reduction of landfill disposal costs. Reduction of landfill disposal costs.

Production of reusable products. Production of reusable products.

Revenue from sale of reusable materials.Revenue from sale of reusable materials.

14.2 Benefits of managing solid waste14.2 Benefits of managing solid waste


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Financial SourcesFinancial Sources

- municipal taxes - municipal taxes

- fees charged for services- fees charged for services

- government subsidies - government subsidies

- deposit-refund system for recyclables - deposit-refund system for recyclables (Bangkok, Singapore, Tokyo, and Jakarta)(Bangkok, Singapore, Tokyo, and Jakarta)

- several forms of levy several forms of levy

-direct fees based on waste volumes direct fees based on waste volumes

-indirect fees indirect fees (based on property taxes, floor area, water and electric bill)(based on property taxes, floor area, water and electric bill)

14.3 User fees and fee collection14.3 User fees and fee collection


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Benefits of waste reduction & recyclingBenefits of waste reduction & recycling- Space savingSpace saving

- Sustainable use of natural resourcesSustainable use of natural resources

- Resource recoveryResource recovery

- Environmental savingsEnvironmental savings

- Financial benefitsFinancial benefits

- Health benefitsHealth benefits

- Social uplift Social uplift

14.4 Benefits of waste reduction & recycling14.4 Benefits of waste reduction & recycling


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Extracting and adding value processesExtracting and adding value processes

CollectionCollection

SortingSorting

Accumulation of volumeAccumulation of volume

Pre-processingPre-processing

Small manufacturing craftsmanshipSmall manufacturing craftsmanship

Market intelligenceMarket intelligence

TradingTrading

14.4 14.4 Benefits of waste reduction & recyclingBenefits of waste reduction & recycling


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Job opportunities in SWM can be found at different levelsJob opportunities in SWM can be found at different levels

For example at Micro-enterprisesFor example at Micro-enterprises

•Micro-enterprises are for profit business operations. Micro-enterprises are for profit business operations.

•Run by entrepreneurs (focus is on creativity, innovation and the Run by entrepreneurs (focus is on creativity, innovation and the constant search for new products or process ideas) constant search for new products or process ideas)

•Micro-enterprises enter into SWM activities because they see a gap in Micro-enterprises enter into SWM activities because they see a gap in service delivery and existence of a demand for fulfilling that gap. service delivery and existence of a demand for fulfilling that gap.

•The extent of private sector depends on a number factors including The extent of private sector depends on a number factors including demand for the service, ability to pay, poverty and regulations. demand for the service, ability to pay, poverty and regulations.

14.5 14.5 Job opportunities in Job opportunities in SWMSWM


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Thank You for Your Kind Thank You for Your Kind

attention!attention!

14 financial and economic aspects 1/13 content of lecture 14.1 costs of solid waste collection,...

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