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 Levy Persons, Goods or Services Persons Liable Responsible for collection households occupier Electricity company vehicles importer Customs White goods Beverage containers 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