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Determine Transfer Breakpoints: 40 REAR LOADER MANUAL 10 35 30 COST/TONNE ($US) • Each type and size of collection vehicle has a different transfer breakpoint • Traffic speed affects the transfer breakpoint • Consider transfer for hauls over 30 minutes COST ($US/Tonne) FOR COLLECTION AND TRANSFER SYSTEMS - GOVERNMENT SERVICE Georgetown, Guyana- 1999 TRANSFER SYSTEM W/ COLL.TRUCKS 25 TRANSFER TRUCK W/ FACILITY 20 15 TRANSFER TRUCK 60 10 TRANSFER STATION 5 0 5 15 30 DISTANCE ONE WAY TO DISPOSAL 50 1 Typical 2-Level Transfer Stations: Quito, Ecuador, 1998 Manila, Philippines, 1993 2 Direct Unloading to Transfer Truck: Hyderabad, India, Skip Container Lift Collection Truck, Unloads to Open Tipping Truck, 2001 3 Unloading to Storage Floor: Wheeled loader pushes waste into hopper. Knuckleboom crane distributes load. 4 Types of Transfer Vehicles: US, lightweight, filled by extrusion from a compaction chamber US, lightweight open topped, filled by gravity from hopper 5 Transfer Systems: • Enable implementation of regional Treatment/Disposal facilities that achieve Economies-of-Scale. • Treatment/Disposal facilities should be at least 300 tonnes/daily shift to have bulldozers, wheeled loaders, windrow turners fully utilized. • Roads, fences, weighbridges, gatehouses, utilities and maintenance components are fixed costs that should be applied to large waste quantities to lower cost/tonne. 6 Landfill Economies-of-Scale: Landfill Costs - Trinidad and Tobago, 1999 45.0 Cost in $US/Metric Tonne 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Investment Cost/Tonne - Clay and Geomembrane 40 TPD 550 TPD Total Cost/Tonne - Clay and Geomembrane 1100 TPD 7 Composting: • Compost plants are safe and clean and technically appropriate for clean organic waste • Product quality is key to success • Market demand may not be adequate to cover costs Ahmedebad, India, 2001 8 Vermi-Composting: • Requires more land than composting, because piles short. • It is more sensitive to toxics in waste, and is best done on partially composted waste. Bangalore, India, 2001 9 Neighborhood Composting: • Lessen the need to transport waste to disposal. • Enable neighborhood revenues and employment. • Require motivated public support. Dakha, Bangladesh, 2001 10 Refuse-Derived-Fuel Pellets: Hyderabad, India, 2001 • Limited to dry climates with dry waste. • Only clean sorted waste can be consolidated into pellets for use as low-calorie fuel. • Market demand may not be adequate for cost recovery. 11 Materials Recycling at Source: • Source segregation obtains cleanest reusable materials. • Source segregation requires extra collection systems. • Registration and route assignment upgrades the status and security of waste pickers. • Source segregation minimizes occupational and environmental health risks. Bangalore, India, 2001 12 Protective Gear for Workers: Khulna, Bangladesh (syringes), 2001 Tema, Ghana, 1998 13 Segregate Special Wastes: • Licensed private operators to safely handle segregated biomedical wastes Hyderabad, India, 2001 14 Third – How do we arrange financially for Sustainable Solid Waste Systems? 15 Solid Waste Service is Costly: • Total cost for solid waste collection, transfer, and disposal is typically $40-80/tonne. • Per capita waste generation is 0.2-0.3 tonnes/year. • 60-70% of total cost is for collection. • Full solid waste service requires 12% of GDP. 16 Adequate Cash Flow is Essential: • 50-70% of total cost is for recurrent expenditure – labor, fuel, tires, oil, spare parts. • Labor and fuel are priority expenditures. • If there aren’t enough recurrent funds, spare vehicles are cannibalized for parts. 17 Sources of Capital Funds: • Municipal bond issues for facilities, including intergovernmental tax credits that recognize externalities. • Municipal borrowings for vehicles, such as from national development banks. • Renewal funds replenished by special taxes, user charges, tipping fees. • Intergovernmental transfers. • Private sector investment. 18 Private Involvement raises Recurrent Budget Requirements: • Recurrent budget must be higher to involve the private sector. • Contractors have to pay monthly for their debt service for investment, and they borrow from short term notes at high commercial interest rates. • Few municipalities could afford to support private sector investment. • Mostly old non-specialized private vehicles are hired. 19 Some reasons for Limited Progress: • Public systems improved in 80’s not sustained. • Development organizations in 90’s reduced funding, assuming there would be private investment. • Investment climate didn’t improve, due to political intervention in contracting and contract continuity. • Municipalities were restricted in the size and length of contracts. • Labor laws and unions restricted staffing reductions to enable private sector service. 20 Solid Waste is a Public Good: • Uncollected and poorly disposed solid waste adversely affects public health and environment. • All municipal residents and visitors benefit from any solid waste services, regardless of whether they directly participated. • Excluding some residents from services, adversely affects others. 21 Economic Instruments for Regional or Global Externalities: • Intergovernmental transfers to upgrade disposal to desired national standards. • Intergovernmental transfers to encourage compost as a carbon sink and means of upgrading land for agriculture. • International transfers to encourage emission reductions to reduce climate change. 22 Examples of financial transfers: • USA Superfund to remediate hazardous releases, including qualifying municipal dumps. – 1980-2005+ Comprehensive Environmental Response, Compensation and Liability Act, and subsequent amendments. – Funded with taxes on crude oil and certain chemicals, eventually 8.5 $US BB. – 45,000 sites assessed, about 1,600 placed on National Priority List. – Private responsible parties sued by Govt. to reimburse the trust. Source: Francisco Grajales 23 Examples of financial transfers: • Israel Solid Waste Subsidy Program – 1994-2003 financial support to municipalities. – Covered 5 years of cost increases for increased disposal and haulage from implementing improved new landfills. – Covered recycling communal bins and a fee for each tonne of waste recycled. – Covered half the cost of backyard composting devices. Source: Francisco Grajales 24 Examples of financial transfers: • EU funds to upgrade disposal for EU accession countries. – 2000-5+ Instrument for Structural Polices for Pre-Assession. – Grants to upgrade infrastructure to meet EU standards, averaging over 1 BB Euros annually. – Funds up to 75% of landfill civil works investment. • EU cohesion funds – 2000-5+ Assists less prosperous member countries to meet EU standards – about 28 BB Euros. Source: Francisco Grajales 25 Examples of financial transfers: • UK Landfill Tax Credit – Taxes every tonne landfilled – 50 BB Pounds/year – mostly funds remediation of solid waste activities. – Landfills given exemption for donations to environmental improvements. – Similar landfill taxes in France, Italy, and Netherlands. • Ireland Recycling Partnership – 1997 payment for every tonne of packaging waste recycled – over 60 MM Euros thus far. Source: Francisco Grajales 26 Examples of financial transfers: • USA Tax Exemptions – For bond issues for resource recovery plants – For investment in landfill gas recovery • Various US States Recycling Subsidies – 5-15% price preferences for recycled content • Global Environmental Facility – funds to promote climate change improvements – 1991-2005+ – ~5 $BB. • Carbon Finance – funds to purchase green house gas emission reductions – 2000-2005+ - ~1$BB. Source: Francisco Grajales 27 Examples of possible carbon finance in solid waste sector*: • Landfill methane gas capture to flare or recover. • Composting or anaerobic digestion to avoid landfill gas. • Transfer stations reduce vehicle emissions from direct haul by collection vehicles. • Recycling captures inherent energy in recyclable materials. *Note: Bank transaction costs necessitate bundling solid waste components to meet required 50,000 tonnes/year of CO2 equivalent 28 Carbon finance to reduce Green House Gases: • In past century, GHG’s grew 35%. • Industrialized countries, with only 20% of world population, contributed over 60% of the GHG’s. • By 2025, global GHG’s are projected to grow by 57%. • By 2025, developing country GHG’s are projected to grow by 84%. • Carbon finance is an international incentive from the original polluters to LDC’s to motivate them to reduce global GHG externalities. 29 ~41 billion tonnes/yr CO2 equivalent discharge to atmosphere in 2000: • ~16% is from methane. • Methane is 21-25 times stronger as a GHG than CO2. • World Bank carbon finance pays according to climate change impact. • Each tonne of methane is paid at 21 times the price of CO2. • Emission purchase agreements commit to pay for 10+ years from World Bank funds. • Prices range upwards from 5$/tonne CO2 equivalent, depending on risk. 30 Solid waste - one of 3 most fixable sources of methane: Major Sources of Methane GHG (~6 billion tCO2e) - % Distribution Rice-11% M anure-4% Ent eric f erment at ion-28% Biomass burning-5% Biof uel production-4% Wastewat er-10% Coal-8%(f ixable) Solid waste-13%(f ixable) Nat ural gas-15%(f ixable) 0 5 10 15 20 25 Source: US EPA year 2000 data 30 31 How do we cover costs for service benefits occur within municipal boundaries and warrant being covered by municipal revenues? 32 Ideally…… • Delegate more authority to municipalities to – Raise capital for investments, and – Establish fees and taxes to cover recurrent costs and debt service. • Encourage municipalities to enter inter-municipal agreements for specific facilities with economies-ofscale (~300 tonnes/day for most facilities…~400,000 residents). 33 Cost Recovery is Recommended: • People are willing to pay for good service. • Free riders and illegal dumpers are commonly identifiable from papers in their waste. • Earmarked user charges enable reliable revenues for service delivery. • Large generators may be influenced by quantity-based charges…polluter pays principle. 34 Cost Recovery Mechanisms: • Property-tax additions for solid waste. • User charges attached to water or electric bills. • User charges billed separately to all waste generators. • Tipping fees at transfer and disposal facilities. 35 Charges are based on City-wide Costs. • Service to the poor is often more costly – small loads, poor access. • Value of waste from the poor is less – fewer recyclables, more ash and sand. • Charges should be proportional to income: – Property area, – Water consumption, or – Electricity consumption. • Only large generators pay by volume. 36 Additional Revenue Sources: • License fees from private subscription operators. • Franchise fees for service zones. • Sales from recyclables, compost and landfill gas. • Carbon finance from sale of CO2equivalent emission reductions. • Landfill, environmental, or tourist taxes earmarked for solid waste. 37 Conclusions: •Plan cost-effective technical systems. •Address all health and environmental issues. •Develop sustainable financial arrangements. 38 http://www.worldbank.org /solidwaste http://carbonfinance.org [email protected] 39 For Discussion Call: 1-210-515-3863# Passcode: 9623224 40