1. 14 Financial and Economic Aspects 1/13 Content of Lecture 14.1 Costs of solid waste collection, sorting and processing 14.2 Benefits of managing solid waste 14.3 User fees and fee collection 14.4 Benefits of waste reduction and recycling 14.5 Job opportunities in SWM

2. 14 Financial and Economic Aspects 2/13 Rising population and MSW: the globally generated MSW In 1990, - 1.3 billion metric tons Presently- 1.6 billion metric tons Money for managing the MSW: In the Early 1990s - Asian countries spent about US$25 billion/yr In the Early 1990s - Asian countries spent about US$25 billion/yr By the 2025- - this will rise to around US$50 billion/yr. By the 2025- - this will rise to around US$50 billion/yr. Hence, SWM has become a large, complex & costly service Hence, SWM has become a large, complex & costly service 14.1 Costs of waste collection, sorting & processing Background

3. 14 Financial and Economic Aspects 3/13 MSW management consumes a high percentage of the municipal budgets, for example: In Malaysia, an average of 50% of the municipal budget is spent on In Malaysia, an average of 50% of the municipal budget is spent on MSW, and of this, 70% is spent on collection. MSW, and of this, 70% is spent on collection. To develop an integrated and cost-effective MSW management system, individual components of the system should be: chosen so they do not overlap or compete excessively chosen so they do not overlap or compete excessively sized to handle the portion of the waste optimally sized to handle the portion of the waste optimally located so that transportation costs are minimum located so that transportation costs are minimum owned, operated, and financed to minimize overall public costs owned, operated, and financed to minimize overall public costs administered by appropriate agencies, with adequate public oversight administered by appropriate agencies, with adequate public oversight 14.1 Costs of waste collection, sorting & processing

4. 14 Financial and Economic Aspects 4/13 Case Study : costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (1/3) Total 17 human settlements (one urban and rest are rural) Total 17 human settlements (one urban and rest are rural) total population of the region: 191,686 (2005). total population of the region: 191,686 (2005). average household size: 4.5 to 7.4 average household size: 4.5 to 7.4 Municipal authorities have the responsibility for providing SWM service one truck and few personnel collects the waste infrequentlyone truck and few personnel collects the waste infrequently solid waste generated, 32.54 tons/day, either infrequently collected or just dumped illegallysolid waste generated, 32.54 tons/day, either infrequently collected or just dumped illegally 14.1 Costs of waste collection, sorting & processing

5. 14 Financial and Economic Aspects 5/13 Case Study : costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (2/3) Fleet needed to handle the generated SMW: 5-ton trucks working on the main streets : 20 tons/day 5-ton trucks working on the main streets : 20 tons/day 1.1-ton trucks covering more remote and narrow internal streets (with transferring loads to larger trucks): 26.4 tons/day 1.1-ton trucks covering more remote and narrow internal streets (with transferring loads to larger trucks): 26.4 tons/day Landfill: 1.62 ha plot has the capacity to accept 4.77 yr of MSW in the area. Landfill: 1.62 ha plot has the capacity to accept 4.77 yr of MSW in the area. 14.1 Costs of waste collection, sorting & processing

6. 14 Financial and Economic Aspects 6/13 Case Study : costs of MSW management in an Egyptian settlement Rosetta region, Nile Delta (3/3) Annual costs of this SWM system (including depreciation, sanitary landfill preparation and rehabilitation, and operational costs) was estimated as $300,000 Costs could be totally covered by the locally raised funds.Costs could be totally covered by the locally raised funds. The willingness to pay was estimated as- $550,000.The willingness to pay was estimated as- $550,000. Profitability of the service: rate of return on investment vary 59.6% to 57.4%.Profitability of the service: rate of return on investment vary 59.6% to 57.4%. MSW service could be financed locally and could represent a profitable business.MSW service could be financed locally and could represent a profitable business. could be provided either by a small-scale firm, a local cooperative or an NGOcould be provided either by a small-scale firm, a local cooperative or an NGO 14.1 Costs of waste collection, sorting & processing

7. 14 Financial and Economic Aspects 7/13 Example: Latin American model for integration of small-scale waste collection enterprises with the formal waste collection Enterprises paid by the municipal authorities or by a community paid by the municipal authorities or by a community provide collection using man powered or semi-motorized carts provide collection using man powered or semi-motorized carts serve hilly areas marginally or not served et al where collection serve hilly areas marginally or not served et al where collection trucks cannot reach. trucks cannot reach. low cost of equipment and administrative costs are minimal, low cost of equipment and administrative costs are minimal, operation and maintenance of the equipment is simple and operation and maintenance of the equipment is simple and inexpensive inexpensive 14.1 Costs of waste collection, sorting & processing

8. 14 Financial and Economic Aspects 8/13 Benefits of managing solid waste are:  Achievement of local, regional, and state solid waste reduction/diversion goals. reduction/diversion goals.  Savings on landfill space.  Savings on energy.  Reduction of water pollution risks.  Conservation of natural resources.  Reduction of landfill disposal costs.  Production of reusable products.  Revenue from sale of reusable materials. 14.2 Benefits of managing solid waste

9. 14 Financial and Economic Aspects 9/13 Financial Sources - municipal taxes - fees charged for services - government subsidies - deposit-refund system for recyclables (Bangkok, Singapore, Tokyo, and Jakarta) (Bangkok, Singapore, Tokyo, and Jakarta) - several forms of levy -direct fees based on waste volumes -indirect fees (based on property taxes, floor area, water and electric bill) (based on property taxes, floor area, water and electric bill) 14.3 User fees and fee collection

10. 14 Financial and Economic Aspects 10/13 Benefits of waste reduction & recycling - Space saving - Sustainable use of natural resources - Resource recovery - Environmental savings - Financial benefits - Health benefits - Social uplift 14.4 Benefits of waste reduction & recycling

11. 14 Financial and Economic Aspects 11/13 Extracting and adding value processes  Collection  Sorting  Accumulation of volume  Pre-processing  Small manufacturing craftsmanship  Market intelligence  Trading 14.4 Benefits of waste reduction & recycling

12. 14 Financial and Economic Aspects 12/13 Job opportunities in SWM can be found at different levels For example at Micro-enterprises Micro-enterprises are for profit business operations.Micro-enterprises are for profit business operations. Run by entrepreneurs (focus is on creativity, innovation and the constant search for new products or process ideas)Run by entrepreneurs (focus is on creativity, innovation and the constant search for new products or process ideas) Micro-enterprises enter into SWM activities because they see a gap in service delivery and existence of a demand for fulfilling that gap.Micro-enterprises enter into SWM activities because they see a gap in service delivery and existence of a demand for fulfilling that gap. The extent of private sector depends on a number factors including demand for the service, ability to pay, poverty and regulations.The extent of private sector depends on a number factors including demand for the service, ability to pay, poverty and regulations. 14.5 Job opportunities in SWM

13. 14 Financial and Economic Aspects 13/13 Thank You for Your Kind attention!