Transcript Slide 1

Modern Waste Management for Kosovo
Workshop no 6 July 26 2007
Contractual and financial issues
for waste management
Leaders in the design, implementation and operation of
markets for electricity, gas and water.
2
Environmental Regulation
Why do we need environmental regulation?
3
Bhopal Union Carbide
• 03/12/1984, an explosion at the Union Carbide
factory caused a gas cloud to escape from the facility
• The cloud contained Methyl Isocyanate, highly toxic
organic compound used in pesticides, rubber and
adhesives
• 4,000 local residents killed, health problems for
50,000 to 500,000, still persist today
• The cause resulted from neglected safety procedures
(because of budget cuts). Safety measure were in
place but not functional.
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Bhopal Union Carbide
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The Love Canal chemical waste dump
•
1920 Hooker Chemical turned an area in Niagara Falls into a municipal
and chemical dump site
•
By 1953, the site was filled and sealed with a thick layer of red clay to
prevent escape of chemicals
•
A housing and school project was developed which involving
excavating into the dump site, called love canal
•
The dump site contains carcinogenic dioxins and a total of 248 species
of chemicals (mainly pesticide residues & chemical weapons research)
•
Chemicals had entered homes, sewers and yards
•
More than 900 families were moved from the area.
•
Hooker’s parent company had to pay over € 230 million for cleanup and
management of the dump site.
6
London Smog 1952
•
December 1952, London suffered from the heaviest smog (industrial
fog) ever known (visibility dropped to a few meters)
•
It lasted until March 1953 and made worse by light winds, high
moisture, increased coal burning (because of the cold winter)
•
Particulate matter reached 56 x normal levels. Sulphur dioxide was 7 x
normal levels and promoted acid rain in London
•
The smog killed approximately 12,000 people, mainly children, the
elderly and the ill. Cause of death, breathing in acidic aerosols that
cause irritation and inflammation
•
This disaster resulted in the Clean Air Acts 1956. Government
introduced smokeless zones, cleaner fuels and located power stations
in rural areas. Tall chimneys were introduced to encourage dispersion
of the gaseous emissions (sulphur dioxide etc)
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London Smog 1952
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London Smog 1952
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Environmental Regulation in Waste
Sets waste policy,
strategy and targets
Government
(Department of Food, Environment & Rural Affairs
(DEFRA)
ENVIRONMENT AGENCY (main body) & LOCAL PLANNING DEPARTMENT
Waste Management
Licensing
Statutory consultee with
Planning Departments
Enforcement of
licence conditions
PPC Permits
Develop test protocol,
monitoring etc
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Environmental Regulation (UK)
• In the UK [sic], the government set up the ‘Environment
Agency’, as the primary environmental regulator.
• Environment Agency vision:
• "We are the leading public body for protecting and
improving the environment in England and Wales
[UK]. It's our job to make sure that air, land and water
are looked after by everyone in today's society, so
that tomorrow's generations inherit a cleaner,
healthier world."
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Environment Regulation (European)
• Public authorities regulate in the public
interest to achieve a variety of goals:
− ensure fair and competitive market price
− to protect human health and the environment
− to provide safety (e.g. health & safety during
operations)
− to stimulate innovation, new practices
Better Regulation, EC 2006
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Environment Regulation in Kosovo
• EAR funded institutional support for environmental
management (MESP)
• MESP will be the primary environmental regulator,
developing policy, strategy and importantly
regulations for enforcement
− MESP develops Environmental Action Plans for Kosovo to
improve environmental awareness and reduce pollution of
the environment
− Enforcement roles for both ministry and municipal staff
− Develop and improve infrastructure for waste management
and other environmental sectors
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Environment Regulation in Kosovo
The present waste management system does not record data on
waste generation, collection, treatment, recovery, and disposal in a
comprehensive and structured way. Although about 90% of the
urban population have garbage collection, it is generally of poor
standard….. In contrast, less than 10% of rural areas are covered
by garbage collection. The fee payment collection is very low
(30-40 %). Out of a total of 29 municipal landfills, 26 are
rehabilitated and the European Agency for Reconstruction (EAR)
and other donors have supported the reconstruction or construction
of 9 additional regional landfills (Kosovo Environmental Action Plan 2006-2010)
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Commission’s 6th Environmental Action Programme
• Set out 4 key environmental priorities:
− climate change
− nature and biodiversity
− environment and health and quality of life
− natural resources and waste
• Better use of resources, greater efficiency and more
sustainable waste management in the future
• Decoupling of waste production and economic growth
• Waste management to reduce greenhouse gas
emissions in the coming years (i.e. restricting waste
types, gas collection and treatment etc)
MS
Background to economic issues
in waste management
Principles embodied in all Central European countries:
1. The User Pays
2. The responsibility for municipal waste issues – collection,
disposal – is generally with the Municipality.
3. It is up to the Municipality

to provide the relevant services on its own, or

to contract it out.
4. The user of the service (household, commercial premise, …)
owes the cost for the service (as a fee) to the Municipality.
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MS
Example Tyrol: 700.000 population, 9 political districts…
Innsbruck-Stadt
Bezirk Imst
Bezirk Innsbruck-Land
Bezirk Kitzbühel
Bezirk Kufstein
Bezirk Landeck
Bezirk Lienz
Bezirk Reutte
Bezirk Schwaz
MS
…9 waste management districts (2 single municipalities)
AWV Reutte
Gemeinde Reutte
ABV Westtirol
Gemeinde Sölden
Stadt Innsbruck
AWV Innsbruck-Land
ABV der Region 10
ABV SÖ Mittelgebirge
AWV Unterland
AEV Kufstein
AWV Kitzbühel
AAV Großache Süd
ABV Osttirol
MS
Case study: Waste Management Council Western Tyrol
 70.000 inhabitants
 54 municipalities (2 district capitals @ ca. 10.000 inhabitants)
 District capitals run waste collection service by own means
 All other municipalities have contracted waste collection
services out; 5-year contracts + yearly extension are typical
 4 private waste collection companies are active in the area
 The municipalities are organized in a Waste Management
Council, founded in 1984
 The Council owns and operates a central landfill
(in future: a waste treatment centre).
MS
How does the whole thing work there ?
Waste collection (and similar services)
Private collection companies
waste
fee
Municipality 1
Mun. 2
Mun. 3
€ per
month
Mun. 4
€ per t
Waste Management Council
Private operator
Waste disposal (operation of landfill…)
MS
Background to economic considerations
in waste management II
Principles… continued:
5. Certain commercial and institutional waste generators may
take back the responsibility for collection and disposal from
the Municipality. They turn into "self-disposers".
6. The differentiation between

„household waste“ (which remains under the Municipality´s
responsibility in any case) and

„commercial waste“ (which might be disposed of under the selfresponsibility of the relevant generator, eg. a supermarket chain)
usually is done according to quality and/or amount.
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MS
…and what about regulation ?
 There is no economic regulator.
 Collection tariffs are subject to the law of the market.
 Disposal (landfill) tariffs
are subject to approval
by local government.
 Landfills have individual tariffs (reflecting
their individual cost)
and defined catchment areas.
Sanitary landfill
MS
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Municipal waste fee – example Vienna
Landlord
Residual waste
Waste paper White glass Coloured glass
Waste fee
€ 3,16
Municipality
€ 0,00
€ 0,00
€ 0,00
52 weeks
Metals
Plastics
Biowaste
164,3 € per household
and year
finances in addition to collection
services (of residual waste and
recyclables) other services like a
infoline, free delivery of compost,
etc.
€ 0,00
€ 0,00
€ 0,00
MS
Waste management charging principles and
practice
1. The User Pays
2. KISS – Keep It Simple Stupid

It reduces administration efforts

It reduces regulatory requirements

Transparency counts in the long turn.
3. Tariff should incorporate / represent an incentive to support
the system´s policy – in Europe the „3 R´s“
4. Tariffs are due on a regular (monthly to yearly) basis
5. No differentiation between collection and disposal cost.
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MS
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Tariff types for Municipal Waste Management
1. Tariffs per household
2. Tariffs per household, considering also number of persons
3. Tariffs depending on floorspace
4. Tariffs depending on volume
5. Tariffs depending on weight
top-up fee
usually
depending on
volume
≈⅔
Basic fee
≈⅓
6. Tariffs depending on value of property
7. Tariffs depending on distance to disposal
8. …and combinations thereof (usually 1/2/3 combined with 4/5):
Tariff types 4 + 5 fulfil the request of providing an incentive to support the
system´s policy (i.e. to use recycling opportunities…) but:
A split-up of the fee in "basic (fixed)" & „top-up (variable) fee" is recommended.
MS
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Tariff types for Municipal Waste Management
1. Tariffs per household…
…give no incentive eg. to recycle
2. Tariffs per household,
considering also number of persons,
and
3. Tariffs depending on floorspace
are both difficult being administered (quality of data !)
MS
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Tariff types for Municipal Waste Management
4. Tariffs depending on volume
a)
Measuring the
produced waste volume
(´real volume metering´)
b)
Counting the emptying
of bins (´identification´)
c) pre-paid bags (CH, A)
5. Tariffs depending on weight
…sophisticated systems
with a few practical problems…
however, where the weight
of a single waste load can be taken easily
(commercial !), weight should be taken as tariff basis !
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Example contract
• Contract between:
− London municipality – Royal Borough of Kensington and Chelsea
− A private waste management contractor
• Waste collected from about 90,000 domestic and commercial
premises
• Approximately 95,000 tonnes of waste per annum
• Household collection: twice a week, Monday to Friday
• Commercial collection: up to three times a day, seven days a
week
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Collection contract example
• Contract elements included:
• General specification
• Waste collection specification
− Collection days
− Collection amounts
− Commercial waste
• Recycling specification
• Street cleansing specification
• Container maintenance
• Bulky items handling
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General specifications
• General specification includes:
− Annual Reporting
− Reporting and communication
− Meetings between municipality and contractor
− Contract monitoring
− Customer care
− Quality assurance
− Vehicles and plant
− Premises
− Environmental Performance
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Waste collection specifications
•
Waste collection specification includes:
−
Category of waste and type of collection i.e. household, commercial and co-collections
(household & commercial)
−
Collection timings (may be restricted in shopping areas)
−
Operational requirements (general)
−
−
•
Health and safety requirements
•
Maintain clean and tidy waste storage areas
•
Receive and resolve any operational complaints
•
Collection timescales
Operational requirements (household)
•
Collection twice a week
•
Collections for dry recyclables and green waste sacks
•
Deal directly with any complaints
Operational requirements (commercial)
•
Increase commercial waste customers
•
Premises to be served (customers)
•
Deal with all operational complaints
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Waste collection specifications cont.
− Operational requirements (special collections)
• Special collection service ‘too big for the bin’
• Service to households and businesses
• Maximise reuse and recycling of all collected waste
• Deal directly with any complaints
− Operational requirements (container transport)
• Manage, maintain & repair all municipal containers
• Provide maintenance (regular and annual) schedules
• Deal with all operational complaints
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Recycling requirements
• Minimum recycling: 11,000 tonnes per annum (with
less than 10% rejects)
• Collections to include
− Paper and cardboard
− Glass bottles and jars
− Plastic bottles
− Cans and tins
• Kerbside collection – 63,000 households
• ‘Bring’ sites collection through service area
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Additional contract information
• Waste streams, domestic and commercial,
sources of waste and quantities
• Collection timescales and vehicle routing
• Container identification, type, number and
condition
• Collection days
• Oversize item collection
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Collection contract
• Contract awarded to SITA (Suez
Environmental) for collection
• Collection contract – 15 years
• Cost of household collection €55.34/a
• Total of household disposal €52.66
• Total of cost for waste management €108
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Kosovo waste management
• Where have we come from?
− Situation in 2000 much improved (EAR)
• Old dump site closed, restored
• Construction of new landfills complete
• Improved collection infrastructure
• Better environmental conditions and public health
− 2007 onwards
• Financial sustainability
• Environmental improvements (LFG control, recycling..)
• Better environmental regulation & enforcement
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Focus on waste management
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Environmental strategy for Kosovo (2005)
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Kosovo Environmental Action Plan (2006)
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Kosovo Waste Management
Source: KEAP, 2006
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Why use it?
• Requirement under European legislation (you have
to, common sense!)
• Provides useful information on the state of waste
management in Kosovo
• Provided updated records for reviews
• Allows better determination of costs
• Breakdown of different waste streams, optimise
collection efficiency
• Better determination of waste management fee/cost
MS
How can the public and the private
Example Macedonia (Source: NWMP)
sector work together for the good of all?
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And for Kosovo:
How can the involvement of the private sector
be facilitated in a controlled, beneficial and
GRAPHIK
sustainable way? (…on a level playing field…)
MS
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MSW collection in Kosovo: Status quo
 Collection of Municipal Solid Waste is presently within the
responsibility of POE´s (Publicly Owned Enterprises)
 Main problems POE´s are confronted with:
- Poor economical status, which to some extent is due to
- low willingness to pay of certain customer groups
(actually result of an institutional shortcoming:
Fees – also for disposal – are to be collected by POE´s).
 Presently there is strong pressure from the private sector to
enter the market.
 The private sector focuses on ´profitable´ customers (where
willingness to pay is out of question): Institutional waste
generators (KFOR, …), commercial & industrial enterprises.
MS
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MSW collection in Kosovo: Status quo II
 POE´s fear that loosing the “cash cows” they have got presently (ICI industrial, commercial & institutional generators)
might make it even more difficult to provide a proper service
in the area of household waste, and other (street cleaning…)
 WWRO is issuing licenses for waste collectors.
 WWRO´s competence is limited presently to POE´s.
However private contractors are already active, either
informal or being equipped with permits issued by MESP.
 What to do ?
MS
olid Waste (M
S
l
a
p
i
ic
SW
n
u
)
M
End-of-life
vehicles
Public service
waste
Bulky waste
Sewage sludge
Dry
Recyclables
Hazardous waste
Hazardous waste
Household Waste
Industrial, Commercial
& Institutional Waste (ICI)
Healthcare waste
Biodegradable waste
Agricultural
waste
Kitchen
waste
Catering waste, organic
production residues
Green waste
from gardens
Mining waste
Construction
& Demolition
Waste (C & D)
MS
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What sorts of waste are we talking about ?
“Municipal Solid Waste” is defined in UNMIK regulation
No 2004/49 as…
solid waste, not being hazardous waste, medical waste or
toxic waste, from household, commercial, institutional or
industrial sources and processed wastes.
MS
46
There are more & less “profitable” waste streams…
 Waste from households
 Certain recyclables
 Bulky waste
 Commercial waste
 End-of-life vehicles
 Certain institutional
sources (KFOR,
UNMIK, …)
 “Illegal dumpsites”
 C & D waste
…
 Certain industrial
sources
…
MS
Don´t miss opportunities:
System-free collection of cardboard
 No investment needed, no increase of cost:
 Use standard compaction trucks
 Decrease number of trips (with waste loads) to landfill
 Save disposal fee…
 …turn a 5,26 €/t minus in a 5 €/t plus in your books
 KLMC will enjoy less leachate (and gas) production
 Enhance your image (waste hauler  waste manager)
 If you don´t do it today,
your competitor will start with it tomorrow.
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MS
48
So what to do ?
 POE´s continue to collect…
 …WASTE, not FEES
 Municipalities take – according to Kosovo Waste Law –
the responsibility for waste management service provision
 Main role of Municipalities
(which may aggregate to larger, regional associations)
•
Development and implementation of policy including setting and control of targets
•
Creation of public awareness, conduction of information campaigns
•
Setting and collecting of waste fees.
 Waste collection services are tendered out in a controlled way –
POE´s will compete with private contractors on a level playing field
 Disposal costs charged to municipalities
 Landfills may transfer to regional associations at a later stage.
49
Final thoughts…
•
Funding for main infrastructure is largely complete
•
On-going costs & future investments must be funded by operational
revenue (waste tariff, fees)
− Current levels are about 60%, not sustainable
•
Must find better ways to pay bills
− Political will
− Electronic payment through the banks
− Increase number of payments points
− Stimulate and encourage payment of utility bills
• With sound financial footings, the industry can develop to
provide Kosova with a sustainable, progressive waste
management sector
MS
Final comments on the workshop´s day 2
 Affordability of present waste fees (collection + disposal):
Is it really the matchmaking point in Kosovo ?
 If that is the case:
No option left than to keep the service level as it is
(or reduce it even further…)
 BUT: Current figures do not support this assumption.
Waste fees are supposed to be affordable when not
exceeding 0.6 – 1 % of GNDI 1).
 GNDI Kosovo: ~ 1.100 € / person, yr (source: IMF 2)).
 Range of typical waste fees in Kosovo: 50 – 100 € per household, yr.
1)
Gross National Disposable Income
2) International Monetary Fund
MS
Final comments on the workshop´s day 2
 So isn´t rather collectability of fees (which comes along with
a – understandably limited – willingness to pay) the core
problem of Kosovo´s entire waste management system ?
 If that really is the case:
The institutional set-up has to be adopted in a suitable way.
 If the relevant changes can be delivered, the present service
level can be maintained, and in the mid to long term service
levels can be improved sustainably…
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Thank you
for your attention !
[email protected]
[email protected]