october 8th, 2014 mca - innovator and partnership forum 1 development of improved solid waste...

MCA - INNOVATOR AND PARTNERSHIP FORUM1 OCTOBER 8TH, 2014

Development of improved solid waste management through public-private-partnerships (PPP)

Janus KirkebySenior Project manager, MSc, PhDWaste & Recycling, COWI


› 1. Agenda and Introduction

› 2. SWM in Africa

› 3. Case studies› Kampala Solid Waste Management PPP Project

› Lesotho Health Care waste management

› Pietermaritzburg, SA

› 4. Possible future and high-end solutions› Waste treatment

› Waste sorting

› 5. Barriers and opportunities to introduce Integrated Waste Management

› 6. Summary & conclusions

Agenda1. Agenda and introduction


COWI

› Danish company established in 1930's

› Leading consultant with >6500 employees worldwide

› Offices round the world, incl. Lusaka, Dar es Salaam, Kampala

› Consultancy within infrastructure, construction, environment, economics and energy

› Current SW projects in Europe, Central Asia and former USSR republics, India and Africa

Selected projects in Africa

› Feasibility study for port and ship waste in Mwanza, TZ

› Feasibility study, detailed designs and tender document for water supply and sanitation in Kigoma, TZ

› SWM in uMgungundlovu District Municipality (Pietermaritzburg), SA

› Transaction advisor for the establishment of a PPP financed SW facility, Jo'burg

› Lesotho Health Care Waste (HCW) management

› Feasibility study for establishment of WtE plant, Angola

› Feasibility of a waste-to-energy facility for the City of Addis Ababa, Ethiopia

Introduction1. Agenda and introduction

MCA - INNOVATOR AND PARTNERSHIP FORUM4

Requirements:

› Higher collection rate

› Safe and Hygienic

› Low cost and financially sustainable

› Robust technology

› Employment

› Business opportunities for SME's (small companies)

› Environment

Some solutions:

› Cooperatives/micro-enterprise to manage waste and formalising jobs for waste pickers etc.

› Community based approaches that tap into the traditional, community and village structures

› PPP – private operation or investment in waste collection, recycling, treatment and disposal.

› Tariff collection – combined/unified tariffs for public utilities

› Choice of technology that is institutionally, organisationally and financially

› Social and environmental impact assessment

SWM in developing countries

OCTOBER 8TH, 2014

2. SWM in developing countries


› Organised workers for collection and/or sorting of recyclables

› Better sale prices for recyclables (avoid middlemen)

› Possibility for collection agreements from commercial units

› Larger and stable flow

› Increase safety and health

› Support from authorities, examples;› establishment of organisation

› laws and legal assistance

› technical assistance

› loans

› training

› provide equipment, water and sanitation facilities

› establish special area for sorting (reduced risks compared to sorting at landfill)

› health care

Cooperatives and Micro-enterprises

OCTOBER 8TH, 2014



Residual waste treatment facilities are capital intensive and require specialised skills for successful operation:

› Strategies for ownership, operation and financing:

› Ownership: Municipal/PPP/Private

› Operation: Municipal/Municipal Utility/PPP/Private

› Financing: Municipal/prudential borrowing/PPP(SPV, balance sheet, mix, etc.)

› Key concerns for prospective private sector bidders:

› Risk allocation between authorities and private company (waste supply, gate fee, residue disposal, revenue from energy/recyclables, planning risk, regulatory risk, obsolete technology risk, etc.) -> Is the project financially viable?

Ownership and strategies

OCTOBER 8TH, 2014



› Technology is not the only answer› Social acceptance, financial viability, technical know how and willingness to pay are

important premises for a success

› Rather have "working low tech" than "high tech out of order"

› Proper operation through private partnerships possible more efficient

› Aim for polluter pay principle, with possible exemptions for the poorest› Ensure to collect tariffs and inform the

importance of the tariffs to citizens

› Part of tariffs used for extension of SWM systemsavings for new investments

› Involve local communities through cooperatives or micro-enterprises

Reflections

OCTOBER 8TH, 2014



Kampala solid waste management PPP project

3. Case studies

› Situation analysis:› < 60% collection efficiency / 1,000 TPD

› No tariffs or gate fees

› Poor operation & status of landfill

› Private sector involvement in order to improve the situation by:

› Mobilizing private capital

› Attracting/securing knowledge & experience

› Raising operational standards

› Setting and collecting tariffs

› Realizing lower overall costs

› Securing funds for maintenance and repair


› 1. Collection concession:› Kampala split in different collection zones, each separately tendered for 3-5 yrs

› Both door-to-door and collection point service. Cross subsidization from affluent areas to poorer areas with collection points

› Equipment to be provided by the private operator

› Tariffs set by authorities but collected by private operator

› Transport to designated site (landfill)

› Fixed gate fee for disposal

› 2. Disposal concession:› Tender for operation & maintenance of current site until closure

› Optional: concession for future disposal site

› Operation in compliance with Ugandan and international standards

› Closure & aftercare of site at the end of useful life

› Utilization of appropriate choice of technology (composting, LFG utilization etc.)

› Formalising recycling and the ensuring proper working conditions for scavengers

› Fee Per Ton paid to the private operator

Kampala SWMTransaction structure

OCTOBER 8TH, 2014

3. Case studies


› Move from failing and unsustainable local solutions for waste management to regional and more sustainable solutions.

› Development of institutional structures, formal job-descriptions and capacity building

› Before non-functioning local incinerators or pit burning:Now a private contractor in a PPP arrangement collects from smaller clinics and hospitals for central destruction in regional incinerators

› Introduction of skilled and trained personnel

› Access to funds for operation and maintenance

› Dedicated vehicles for collection

› Closure of most polluting incinerators and pit—burning sites

› Private contractor and better management solutions most often leads to higher costs , because past services were grant financed, not maintained and quickly warned out, which had no permanent budget input for the health facilities.

Lesotho Health Care Waste (HCW) management

OCTOBER 8TH, 2014

3. Case studies


› Improved treatment› before: Open fire

› Now: Organised and safe collection by 4x4 and centrally combustion

› Requirements for › segregation and storage

› collection vehicles and drivers

› license for HCW facility operator

› book keeping records (at both clinics and treatment)

HCW project Lesotho

OCTOBER 8TH, 2014

3. Case studies


• Policy and legal framework

• Regulations declared (will need to be enforced)

• Defined budget for consumables and services as well as system for stock management, control and monitoring of use of equipment and consumables

• The design and purchase of the 3 vehicles for transporting HCW

• Resources have improved and are motivated and capable

• Individuals identified and providing inspiration to others.

• Benefits of institutionalizing good waste management practices lead to wider positive effect on the overall management systems

Some main outcomes from HCW project Lesotho

OCTOBER 8TH, 2014

3. Case studies


› Tasks/objective› establishment of sustainable waste management collection and disposal

› establishment organisational structure for cooperation between 7 municipalities

› Outcomes (to date)› Good results from supporting Cooperatives of waste pickers and recyclers, as this

allows for affordable improvement of waste services and creates formal employment of vulnerable waste pickers

› However, seed funding of cooperatives is required (civil works and equipment), as the cooperative members have no funds and cannot raise credit

› Cooperatives are vulnerable to loss of key individuals as well as in-fighting if income is insufficient of not shared fairly

› National SA grants are available fro job-creation initiatives that can be exploited to establish cooperatives

› Cooperatives generally control more of the value chain and are less vulnerable to middle-men than waste pickers

Pietermaritzburg SWM Project

OCTOBER 8TH, 2014

3. Case studies


Sorting Technologies

› Clean / dirty sorting› mixed waste, source separated waste or comingled?

› Mechanical / manual sorting › mechanical weight and density separators

› shredding and grinding

› manual labour

› Use of advanced technologies› automatic washing

› optical sorting (NIR)

› sensory equipment (X-ray, …)

Material recycling facilities (MRF)

OCTOBER 8TH, 2014

4. Possible future and high-end solutions


› Waste-to-Energy (WtE)› usually only financial viable with heat sales and high land costs (for landfill)

› Landfill gas collection› viable energy production if large amounts of degradable waste and mitigation of CH4

› Composting› could be viable if there is a demand

› possibility of upgrading / refine the product to "growth media" for high end use

› need good quality input, fx. garden waste and NOT mixed waste

› source separation essential / Selected fractions and sources

› Biogas / Anaerobic digestion (AD)› possibility of energy production

› often high tech solutions but also robust low tech solutions exist

Possible future and high-end solutions

OCTOBER 8TH, 2014

4. Possible future and high-end solutions


Opportunities:

› Involvement of small and medium sized companies

› Involvement of local community through cooperatives

› Improved environmental standards of waste management

› Increased recycling and resource management, incl. separation at source and collection of recyclables directly from commercial and/or residential areas

› Increased health and safety

Barriers and opportunities to introduce Integrated Waste Management and PPP

OCTOBER 8TH, 2014

5. Barriers and opportunities


Barriers:

› The organisation in the local authorities should be ready and requires leadership, mandate and its budget for SWM

› Establishment of a financial viable solution often very difficult

› Ensuring willingness-to-pay so the income from tariffs covers the actual expenses

› Difficulties collecting tariffs

› Maintenance and operation of new facilities/technologies difficult due to lack of finances and skills

› Possible higher costs for improved service and disposal/treatment

Barriers and opportunities to introduce Integrated Waste Management and PPP

OCTOBER 8TH, 2014

5. Barriers and opportunities


› Int'l experience show: There is no single-streamed solution: A host of treatment and sorting technologies are required to divert waste from landfill and increase material and energy recovery.

› The optimum combination of technologies for an integrated waste management system depend on the key decision-making parameters:

› Landfill diversion targets

› Collection efficiency aims

› CO₂ reduction / Environmental targets

› Energy recovery and material recovery targets + market

› Affordability targets (household tariffs and willingness-to-pay, gate fee)

› Procurement, ownership & financing strategy (risk allocation)

› Employment and socio-economic aims

Summary & conclusions

OCTOBER 8TH, 2014

6. Summary & conclusions


› There are several opportunities within f.x.:

› collection of recyclables from commercial/residential areas

› collection of residual waste (informal areas)

› sorting (preferably at designated areas and possibly for trucks from dedicated areas)

› composting

› landfill gas collection and utilisation

› etc.

› Ensure f.x.

› the feasibility and sustainability

› that the legal framework, bylaws etc. permits the initiative

› the initiative does not interfere with other stakeholders concession

› etc.

Summary & conclusions

OCTOBER 8TH, 2014

6. Summary & conclusions


Thank you!

Thank you!

Janus Kirkeby

[email protected]

tel. +45 5640 1409

mob. +45 5164 9676

www.cowi.com/waste

mailto:[email protected]

http://www.cowi.com/waste

october 8th, 2014 mca - innovator and partnership forum 1 development of improved solid waste...

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