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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