Public Private Partnership (PPP) in Municipal Solid Waste

Management

Institute School of Civil Engineering SASTRA University Thanjavur

Students Gangainathan A Veeraraghavan S Senguttuvan R

INTRODUCTIONo Solid Waste Management refers to handling of waste in Eco-friendly way

o It is responsible for generated waste from source to disposal

o Municipal solid waste includes household wastes, commercial wastes & waste from street wash by a municipality

o Effectively managed by converting Waste into Wealth (W2W)

SANITATION + BUSINESS = SWM

PUBLIC PRIVATE PARTNERSHIP

Combined working of Government and Private entity for public welfare in order to develop Infrastructure

Present Problemo Improper collection of wasteo Lack of fundingo Improper planningo Political Interferenceo Unhygienic Environmento Poor Decision making

Out-come of PPPo Huge investmento More efficiencyo Proper maintenance of assetso Better Managemento Advanced Technology

MCGM - Municipal Corporation of Greater Mumbai y axis – INR / Ton

Comparison in Mumbai: Govt. vs PPP

Management cost

Benefits0

500

1000

1500

2000

2500

GovtPPP

OBJECTIVESo To apply the class room knowledge with the practise at field & verify the

ground reality

o To estimate Financial support need to implement effective MSWM

o To prepare Public-Private-Partnership(PPP) model

METHODOLOGYo Estimation of waste in volume basis

o Estimation of amount required to implement MSWM by functional elements with respect to men & money

o Design of Sanitary landfill

o SWOT Analysis

o Nature of Contract

o Fixation of Marginal fee

o Financial Analysis

o Feasibility Evaluation of Project

STUDY AREAo Area chosen for our case-study is Pattukkottai Municipality

o It is located at 10.43°N 79.32°E along the south-east coast of India in the East-central region of Tamil Nadu

o Selection Grade Municipality in Thanjavur district, Tamilnadu

Year of MSWM Commencement

2002

Area 21.83 sq.kmLength of streets 94.947 kmPopulation 73097Waste generated 35 TPDPercapita waste generation

0.48 kg > National avg.

No. of Line(route) 2Literates rate 77%

ESTIMATION OF WASTE IN VOLUME

o In order to find-out the materials required, waste calculated on the basis of volume

o By conducted simple experiments with known size of container with respect to weight of waste in non-compacted condition

Type of waste

Percentage

Weight (kg)

Volume (cu. m)

Food waste 35 12250 55.43Paper 9 3150 21Grass 15 5250 85.43Plastic 2.5 875 53.68Glass 1 350 0.28Metal 0.5 175 0.022Inert material

37 12950 14.38

Total volume per day

230 cu. m

35%

9%15%

2.5%1%

0.5%

37%

Food wastePaperGrassPlasticGlassMetalInerts

Ingredients

COLLECTIONPresent Scenario

o Once in a day during morning timeo Door to door collection method o Not covering the outer areas

MATERIAL RESOURCEType of Material Tricycle Compactor

binVolume (cu. m) 0.972 2.6Available 47 50Required more 118 45Cost(INR) 5.9 lakhs 4.5 lakhs

HUMAN RESOURCEMethod Door to door

collectionNo. of workers per vehicle

2

Total number of workers

330

Wages per head 100Total Amount (pa) 120.45 lakhs

Fixed Investment : 10.4 lakhsVarying Investment : 120.45 lakhs

Given Max

3

5Credit

SORTINGPresent Scenario

o No sorting process going ono Only some arrangements made according to Govt. rules

Sorting during collection is recommended

TRANSPORTATIONPresent Scenario

o Using Tri-cycles, Tipper lorry & Dumper placerExtra care to be taken to prevent the waste flying outwards

Vehicle available 2 Dumper placer

Workers per vehicle 2Workers Required 4Worker’s salary (pa) INR 4 lakhsFuel cost (pa) INR 50 lakhs

Total cost = 54 lakhs

Given Max

1

5

Credit

Given Max

3

5Credit

WASTE PROCESSINGo No treatment before disposal of waste

VERMICOMPOSTINGTotal Amount 35 tonnesBio-degradable waste 17.5 tonnesAmount of Vermi-compost

7 tonnes

Cost per unit weight of kg

INR 2

Total income per day INR 14000Total income per annum INR 51.1 lakhs

WASTE RECOVERY CENTRE Types of

WasteAmount of Waste (kg)

Cost (INR)

Paper 3150 15750Plastics 875 7000Glass 350 700Metals 175 3500

Total income (pa) = 98.375 lakhs

PROFIT ANALYSISFixed Investment 3 croreVarying Investment 0.5 croreIncome 1.5 croreProfit(pa) 1 crore Given Max

0

5Credit

DISPOSAL Present Scenario

o Occur in upper areao Ground water Table > 2mo Partial Fencingo Open Dumpingo River flows < 30mo Ground water is not affected

Sanitary landfill Designo Percentage of Inert materials : 37%o Amount of waste undergo Landfill : 12950 kgo Current amount of waste : 4726.75 Ton (pa) o Estimated Growth rate : 2.5%o Proposed life : 20

Given Max

2

5Credit

PhasesoLife of each phase : 1 yearoNo. of phases : 20oVolume of one phase : 9540 cu. moPlan area of phase : 954 sq. moSize of phases : 22m x 45moNo. of daily cells : 365oPlan area of one cell : 2.6 sq. m oSize of cell : 1.3m x 2m

CapacityVolume of waste 146730 cu.

mVolume of daily cover

14673 cu. m

Volume of Liner and cover system

36682 cu. m

Volume of Settlement

7336 cu. m

Capacity- 190750 cu. m

LANDFILL COSTCost of Infrastructure 103Surface water drainage system 30Leachate Management Facility 23Environmental Monitoring Facility

8

Varying Investment 30Total cost = 200 lakhs

DimensionsAssumed Height 10 mArea of Landfill 21936 sq. mSize of Landfill 125m x 300m

OVERALL FINANCE REQUIRED

Sl. No

Functional Element

Fixed Investment(INR lakhs)

Varying Investment(INR lakhs)

Total Amount

(INR lakhs)1 Collection 10.4 120.5 1312 Transportation - 54 543 Waste processing 300 50 3254 Landfill 170 30 200

Total amount required is INR 7.7 Crore (Initial investment + First year varying Investment)

SWOT ANALYSIS Strength

o Easy implementation of Infra-structures

o Stringent source sorting

o Reduce the burden of landfill

o Social impact

Weakness

o Heavy investment

o Need of money for Awareness programs

o Takes time to reach out the people

Opportunities

o Good turn leads to call from other places

o Token of appreciation/incentive from govt

o Creation of new jobs

o Expansion or penetration of business

Threats

o Perception of permanent sanitary workers to lose their job

o Collection of fair charges

o Community participation

o Chance for illegal dumping (NIMBY)

NATURE OF CONTRACT Contract made on the basis of Build Own Operate & Transfer (BOOT)

o A private entity franchises to finance, design, build & operate a facility and charge user fees for a specified period

o After completion of specific period, ownership is transferred back to the public sector

Duration of Project 20 yearsResponsibility Private entityPayment of operator

Contractual tariff

Asset Ownership PublicRisk managing SharedRegulatory framework

High

FIXATION OF MARGINAL FEE

Sl. No.

Area Marginal fee(per month

INR)

Income PA(INR in lakhs)

1 Residence 50 109.52 Commercial

place100 73

3 Educational Institutions

500 15

4 Marriage Hall 1000 035 Hotel 500 to 1000 5.56 Industries 1500 1.8

Yes No

60%

40%

Willingness to pay

Total amount of money can be obtained is INR 2.1 crore

Judgement samplingFace to face interview - 250 families

Online survey - 50 individuals

FINANCIAL ANALYSIS

( for 20 years in ₹ crore) Fixed Investment 4.81 Varying Investment 49.89 Total expenditure 54.7 Waste handling’s income 30 SWM fair charge 42 Total revenue 72 Profit earned 17.3 % of return on Investment 64.45% (pa) Break even Analysis 27.90% (pa)

FEASIBILITY EVALUATION OF PROJECT Benefits

o Direct benefits – Money (Sale of compost & recyclable waste, SWM charges- 3.6 crore)

o Indirect benefits – Healthy life, Hygienic environment, Employment generation, Conservation of resources, Reduce emission of GHG

For 20 years period (in crore),

• x - revenue from compost & waste recovery • y - collection of Marginal fee• z - Fixed & varying investment

Since Benefit- Cost ratio > 1, The project is Feasible

B/C ratio = 1.32

CONCLUSION

TRIUMPH

Government Regulation

Public ParticipationPrivate Sector

Service

THANKYOU

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