Overview and Challenges 37070 IMPROVING MANAGEMENT OF MUNICIPAL SOLID WASTE IN INDIA OVERVIEW AND CHALLENGES David Hanrahan Sanjay Srivastava A. Sita Ramakrishna ENVIRONMENT UNIT SOUTH ASIA REGION 1 Improving Management of MSW in India Published by Environment and Social Development Unit, South Asia Region. The World Bank (India Country Office), 70 Lodi Estate, New Delhi 110003 Internet : www.worldbank.org/in Published in May 2006 Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. The findings, interpretations and conclusions expressed herein are those of the author(s), and do not necessarily reflect the views of the International Bank for Reconstruction and Development/The World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Note: This study draws on background papers, working documents and consultant reports prepared as part of analytical work on MSW. Those materials represent the inputs of many clients, and the work of staff, partners and consultants. Key documents will be edited and made available as part of the dissemination of this report. This report can only provide an overview of a complex and rapidly evolving field. The findings and conclusions presented here are subject to ongoing change and refinement. The report is intended to provide a basis for discussion of issues and challenges, and is not intended to be definitive. Cartoons and photos used in this document are illustrative, indicating the nature of challenges. They do not reflect or express any opinion on the actual situation in any municipality, town or city. Cover design : Gulshan Malik Cartoons : Prasanth A.V. Photos : The World Bank, New Delhi Office Editorial & Production : Tapan K. Ghosh Printed at IPP Ltd., Noida, U.P., India 2 Overview and Challenges PREFACE Solid waste management is increasingly becoming a critical issue for municipal authorities in India. Central and the state governments are supportive of local efforts to improve MSW management but this is essentially a municipal function and it is at this level that challenges have to be addressed. The MSW Rules notified in 2000 put most municipal authorities under pressure to perform. In this context an overview study like the present one may prove useful for policymakers and others concerned with environment and development issues of urban India. This report summarizes the findings of year-long analytical work conducted by the Bank, mainly in the states of Andhra Pradesh and Karnataka and later extended to three hill towns, and developed with stakeholders including the central ministries MoUD and MoEF and agencies such as the Central Pollution Control Board. Following a background study that identified the essential institutional and technical issues with regard to management of MSW, the Bank supported the preparation of action plans for three cities each in the two states, as well as the hill towns. These plans provided valuable insights and allowed broad lessons to be drawn out. The major finding is that municipal authorities have to be encouraged to move at their own pace while they develop and implement sustainable plans for upgrading MSW facilities and systems. This report summarizes specific areas which should be priorities. The report also identifies areas where the Bank or the donor community in general could play a useful role. Meanwhile, it is hoped that this report, focused at the policy level, can be a primary reference in strategic planning for municipal waste management in the coming years. Authors 3 Improving Management of MSW in India ACKNOWLEDGMENTS This overview is a synthesis of the inputs and advice of a wide range of interested parties and the team would like to acknowledge the many different stakeholders and individuals who contributed to the substance of the report. Overall guidance on State level challenges and future strategies was provided in numerous discussions with senior officials, especially from Karnataka and Andhra Pradesh. In Karnatka, we would like to thank in particular Mr Jawaid Akhtar, (Managing Director, KUIDFC); Dr K.P.Krishnan (ex-Managing Director, KUIDFC), and Mr Ramkumar (Deputy Advisor- SWM, KUIDFC). In Andhra Pradesh, our thanks go to Mrs Veena Ish (Secretary MA&UD); Mr Tishya Chatterjee (Secretary, Environment); Dr Vijay Kumar (Commissioner, Municipal Administration); and Mr Rajeev Babu (Advisor-SWM, MCH). As the study progressed, useful feedback was also provided by officials in Tamil Nadu, especially Mr Shashi Shekhar (Managing Director, TNUIFSL) and Mr Ambuj Sharma (Commissioner, Municipal Administration). Much of the important detail in this overview was obtained from the municipal Commissioners and senior officers of the municipalities who cooperated in the detailed action plans and therefore special thanks go to the cities of Bellary, Shimoga, Tiptur, Hyderabad, Visakhapatnam, Vijayawada, Shillong, Nainital and Shimla and also the State Government officials who supported and facilitated this work in Karnataka, Andhra Pradesh, Meghayala, Himachal Pradesh and Uttaranchal. At the National level, this report has benefited from the valuable inputs and cooperation of officials at the Ministry of Environment and Forests (MoEF) and Ministry of Urban Development and Poverty Alleviation (MoUD), and the Central Pollution Control Board (CPCB). In particular, the team would like to thank Dr Avinash Akolkar (Additional Director, CPCB); Dr Indrani Chandrasekharan, (Advisor, MoEF); and Mr B. B. Uppal (Advisor, MoUD) for sharing their experiences and offering constructive suggestions through the study. Many other specialists in the public and private sectors, in institutions and in non- government organizations also provided valuable inputs. We thank them all while apologizing that is not possible to list them in detail. Funding for specific studies came from trust funds provided by the Governments of the Netherlands, Norway, and the United Kingdom and their support is gratefully acknowledged. The team also acknowledges the support and encouragement of Mr Jeffrey S. Racki, acting Sector Director of the South Asia Environment and Social unit (SASES), the help rendered by Ms Genevieve Maria Datta of New Delhi Office, and the excellent support and cooperation received from colleagues in the South Asia Urban unit (SASEI), the Water and Sanitation Program (WSP) and the World Bank Institute (WBI). 4 Overview and Challenges CONTENTS Preface 3 Acknowledgments 4 Overview and Summary 7 1. INTRODUCTION 13 Approach and Methodology Feedback 2. SOLID WASTE SYSTEMS AND MANAGEMENT IN INDIA 15 Relevance of MSWM Scale of the Challenge Financial Aspects Progress of MSW Management 3. KEY ISSUES 26 Importance of Action Plans Financial Sustainability Institutional Support Improving Collection and Segregation by Working with Communities and the Informal Sector Using the Private Sector more Effectively Technological Questions 4. MOVING FORWARD 58 Current Context Key Areas Tables & Figures Table 1 Projected Municipal Waste Generation for the Urban Population in India 21 Table 2 Indicative Costs of Existing MSWM for 10 sample Towns in Karnataka 22 Table 3 Relative Capital Cost of Various MSWM Technologies in India 23 Table 4 Summary of Key Parameters from Action Plans 28 Table 5 Summary of Annual Operational Expenditure on Various Activities in MSW Management (Karnataka) 31 Table 6 SWM Data from One Pilot City 32 Table 7 Indicative Carbon Revenues potential Using Various MSW Management Technologies 38 Table 8 Key Characteristics of Contracts in MSW sector 50 Table 9 Risk in Contract Documents for Collection/Transportation and Treatment and Disposal 51 Table 10 Key Risks Not Covered in Contracts 52 Fig. 1 Variation of Solid Waste Generation per capita and Income level 19 Fig. 2 Variation of MSW Generation by Size of City 19 Fig. 3 Operating Costs for MSW 22 Fig. 4 Progress on Compliance (mid 2004) 24 Fig. 5 Institutional Context for MSW Management 41 Fig. 6 Organization Chart for MSWM System, Bangalore 42 Fig. 7 Typical Solid Waste Recycling Network 47 Annexes 1. MSW Rules­Summary 63 2. Option Based Financial Planning­Results from a Pilot City 66 End notes 70 References 71 5 Improving Management of MSW in India ABBREVIATIONS AND ACRONYMS AAA Analytic and Advisory Activity AIC Average Incremental Cost ASCI Administrative Staff College of India BOT Build-Operate-Transfer BOO Build-Own-Operate BOOT Build-Own-Operation Transfer CF Carbon Finance CFB Carbon Finance Business CPCB Central Pollution Control Board DBO Design-Build-Operate EA Environmental Assessment ER Emissions Reduction GEF Global Environment Facility IFC International Finance Corporation KUIDFC Karnataka Urban Infrastructure Development and Finance Corporation MCH Municipal Corporation of Hyderabad MoEF Ministry of Environment and Forests MoUD Ministry of Urban Development MSW Municipal Solid Waste NGO Non-governmental Organization NIMBY Not-In-My-Backyard O & M Operation & Maintenance PSP Private Sector Participation RDF Refuse Derived Fuel SPCB State Pollution Control Board SWM Solid Waste Management TNUIFSL Tamil Nadu Urban Infrastructure Financial Services Ltd. ULB Urban Local Body USAEP U.S. Asia Environment Partnership USAID U.S. Agency for International Development WBI World Bank Institute WSP Water and Sanitation Program WTE Waste to Energy Exchange Rate US$1=Rs. 45 approx 6 Overview and Challenges OVERVIEW AND SUMMARY INTRODUCTION This study summarizes the ment and Forests (MoEF) and Urban findings of a non-lending analytical Development (MoUD). The main activity carried out by the World Bank outputs to date have been a series of in 2004 and 2005. The work was driven working documents developed in by concern over the quality of the collaboration with state- and munici- urban environment, and undertaken in pal-level clients that address priority a context of uncertainty on the suit- issues raised during discussions ability and effectiveness of Bank among the clients, the Bank, and other investment in this area, particularly in colleagues. These documents have regard to components that generate evolved in response to client demand, little or no direct revenue, like waste and form the basis of this summary. disposal and sewage treatment. The Knowledge sharing has been an immediate objectives involved ad- essential component of the work and dressing specific problems established the World Bank Institute is now in consultation with clients, and involved in documenting and dissemi- identifying obstacles and challenges to nating lessons emerging from practi- the improved management of munici- cal experience as well as helping to pal solid waste (MSW) in Indian cities. develop a network of local training The broader long-term objective of this organizations. work is to support municipal authori- RELEVANCE AND MPORTANCE I ties in improving the quality of the OF MSW urban environment within their jurisdictions, with the aim of achieving Urban sanitation and environment related public health and economic issues clearly contribute to basic benefits. health conditions in urban areas. Municipal Solid Waste Management Most of the initial work was (MSWM) however is typically as- carried out in the states of Karnataka signed lower priority than water and Andhra Pradesh, where there was supply and sanitation. Very large strong client interest and engagement, numbers of people are engaged in the and where the Bank is developing a sector: waste pickers, informal waste number of projects to support munici- collectors, and municipal workers pal reform. Activities also involved the among others, although the scale of Central Pollution Control Board this engagement is often not appreci- (CPCB) and the Ministries of Environ- ated. The management of municipal 7 Improving Management of MSW in India solid waste is often the single largest assumes expanded coverage but no activity that a municipality under- upgrading of MSWM systems. The takes, and the effectiveness with cost of providing landfill facilities to which it carries out this role is per- meet the requirements of the MSW ceived as a reliable measure of its Rules over the next ten years is esti- effectiveness in providing services to mated at some Rs 100 billion ­ about its citizens. MSWM is a fundamental US$2 billion. Not all of this invest- indicator of institutional capacity. ment will be publicly-financed, and private financiers express strong There is no reliable national-level interest in the sector. The level of data on the technical or financial investment eventually forthcoming aspects of waste management in India, from the private sector is likely to be and figures are therefore approxima- substantial, but cannot be projected at tions. The scale of the problem how- this time. Planned allocations under ever is fairly clear. The country's the 12th Finance Commission are up to annual generation of municipal solid Rs 2,4000 million (about US$ 500 waste is in the range of 35 to 45 million) in grants for MSW over the million tons. This volume is likely to next five years which would be a double by 2015, and double again by major contribution toward the levels 2025, by which time India would be of investment required. generating over 150 million tons of waste a year. The scale is perhaps APPROACH ADOPTED : more comprehensible at the level of MUNICIPAL ACTION PLANS the individual city: Mumbai today The Bank work included a back- generates about 7,000 tons per day ground report prepared on MSW; (tpd) and Delhi generates about 6,000 specific analysis was carried out on tpd. financial planning for MSW at the COSTS AND NVESTMENT NEEDS I municipal level and of the experience with private sector participation. Given the limited financial man- However, probably the most effective agement and accounting systems used aspect of the work was support of a by most cities, the expenditures by pilot program of Action Plans for activity are not usually recorded. small and medium- sized municipali- Available figures suggest that solid ties, initially with three cities each in waste management accounts for 15 to Karnataka and in Andhra Pradesh nearly 50 percent of the typical (and later extended to three hilly municipality's total spending. The towns, at the request of the Govern- urban population of India is projected ment). These Plans draw on available to be around 400 million by 2015, estimates of MSW parameters, to- which would bring the running costs gether with city specific data provided of providing basic MSW services to all by the municipalities through local urban dwellers to between Rs 24 and consultants, to produce a range of 200 billion (between US$ 500 million possible strategic options for each and 5 billion) annually. The estimate 8 Overview and Challenges municipality. One key contribution of policy guidance, technical sup- the Bank to the detailed planning port, and funding. Realistically, process was on the financial aspects, state governments will have to using a spreadsheet financial model play a major role for a consider- (developed for this purpose) to help able period of time. Some policy clarify the constraints and options in and regulatory matters remain the pilot cities. While the quality and with the central government. relevance of the action plans varied, Capital funding support by the collectively they provided important central government will be cost data which had been previously important and available resources lacking, as well as practical insights need to be used as effectively as into local level constraints. possible. KEY FINDINGS The private sector can play a The work initially concentrated on greater and more important role technical questions relating to process- in improving the management of ing technologies and landfills, but MSW but the current framework institutional and financial aspects soon for Private Sector Participation emerged as the more important issues. (PSP) in MSW is weak and under- developed. Considerable contract- Considerable investment funds are ing of labor and transportation is available in India for urban occurring in MSW but there is infrastructure, and the technolo- limited and generally unstruc- gies are well known and under- tured PSP in treatment and stood. The basic problem is in disposal. Some standard docu- adapting these existing technolo- ments have been developed but gies to specific local conditions. more attention needs to be given MSW management is essentially a to strengthen both ULB capacity to local function, but few local enter into contracts and the governments have the institu- private sector's ability to deliver tional, managerial, or financial against a contract. capacity for a significant improve- Local politicians and senior ment in MSW management in the officials are increasingly committed to near term. There is an urgent need improved MSW management, which for much improved medium term is being served by a growing body of planning at the municipal and available practical information and state level so that realistic invest- expertise. Institutional and financial ment projections can be developed issues must now take center stage in and implemented. bringing these improvements to pass. While the principal responsibilities EMERGING LESSONS for MSW management lie at the Experience in designing and local level, state governments play implementing MSW Action Plans a necessary role in providing yielded some practical lessons which 9 Improving Management of MSW in India are being driven home by financial rial skills including project devel- analyses under way in the different opment, project financing, and municipalities. A number of basic monitoring and supervision. points emerged strongly: the challenge Structured learning and training of large numbers of staff working on opportunities are clearly needed, solid waste; the value of selective and and processes to build institu- well managed contracting of certain tional capacity must be put into services; the need for clear and reliable place quickly. revenue streams (eventually including Ensuring financial sustainability some form of user charges); and in MSW Management. Realistic acceptance that processing and cost estimates and financial disposal will inevitably be a net cost, projections are essential for even though some income may be informed decision making, and to generated to offset the costs. Experi- ensure that MSW Action Plans are ence suggests quite clearly that based on what the municipality municipalities can implement and, can actually afford. Municipalities over time, operate effective and should seek to gain revenue sustainable MSW management by wherever possible from compo- instituting efficiencies within current nents of the waste stream, but they expenditures. Modest user fee systems must accept that it will usually be and new components can be intro- necessary to pay the private sector duced at a measured pace, and poten- if complete treatment and disposal tial opportunities to privatize certain of the full waste stream is to be operations can be purposefully contracted out (the "tipping fee"). explored. Carbon finance is a possibility The practical lessons imparted by although technical and procedural the MSW Action Plans also point to issues must be resolved. Carbon challenges that improved manage- finance payments are based on ment must address and resolve. verifiable and measurable results, Among them are: and therefore require a sound and well operated system. The Need to Strengthen Munici- pal Institutions. Given the in- Working with communities and creasing scale and complexity of the informal sector. Scaling up upgraded MSW systems, it is community systems is an impor- essential to have clear, senior and tant goal but depends very much unified management responsibil- on local conditions and on efforts ity for MSW within any Urban of local authorities. Waste man- Local Body (ULB). Some states are agement is highly labor intensive, moving ahead to develop coherent and promises basic employment approaches within their own opportunities for large numbers of jurisdictions, and this will require people. In striving to make improving technical and manage- municipal systems more efficient, 10 Overview and Challenges a balance must be struck with the MOVING FORWARD sector's traditional role as a source MSW management is clearly a of employment. large and important task for munici- Involving the private sector more pal authorities. Different municipali- effectively. Private sector partici- ties will move at different paces on pation has many potential advan- these issues, but momentum has been tages, though municipalities must established nationally and the overall be able to manage the contracting process will continue to move process adequately and deal forward. MSW management requires quickly with any problems that both increasingly sophisticated may emerge. In the short term at systems management and on-going-- least, private investment by perhaps relatively small--capital foreign firms is likely to be limited investment. Expanding and improving and Indian companies will lead coverage at the national level will market entry. For states, this therefore require both upgraded means developing appropriate institutional and financial structures policy and regulatory frameworks and substantial investment in infra- to attract and promote private structure. One of the most useful steps sector participation in MSW that can be taken by municipalities is management. to develop and implement clear plans for upgrading MSW facilities and Addressing critical technological systems, at a pace which is locally questions. At present, it is realistic acceptable and sustainable in the long to expect that composting can term. lower the net cost of waste dis- posal, but is unlikely to generate The Action Plan approach is now net revenue until markets or being taken up more widely following subsidies change or new innova- a Supreme Court decision directing tions are introduced. Operational India's 59 largest cities to draft such experience with waste-to-energy Plans. Many, mostly larger munici- methods are so far limited, but palities are preparing Action Plans, indicates that financial and opera- and the state of Tamil Nadu has tional risks should be passed to introduced a program supporting its private operators, bidding on the main cities in developing plans that is lowest price to the municipality. already well advanced. Where local conditions are favor- There is a growing understanding able, significant practical advan- of practical and pragmatic approaches tages are likely to be found in to MSW management and further granting municipalities flexibility analytical work should now focus on a to adopt simpler, less costly select number of outstanding issues systems for small landfills. that require deeper understanding. At 11 Improving Management of MSW in India least three such areas may be seen as role for the private sector. priorities: financial planning aspects, Cooperative efforts to bring innova- the development of contracting tions to bear on the institutional and strategies to encourage private sector technical challenges, through pilot participation, and community and projects which introduce and social dimensions of MSW manage- demonstrate new techniques and ment. technologies. Possible areas could ROLE FOR THE WORLD BANK include model systems, regional AND OTHER DONORS facilities, or technologically com- Considerable support for MSW plex facilities/sites which may management is already in place require specific operational ap- among the donor community. Further proaches and skills. timely support that responds to Both the national and state govern- demand by clients could include the ments are supportive of local efforts to following: accelerate the upgrading of MSW Support to the ongoing devolution management, although this is funda- process and the strengthening of mentally a municipal function and it is local government capacity at the municipal level that the chal- through development of training lenges have to be addressed directly. programs, information exchange Considerable improvements in the level mechanisms and informal net- of service have been evident in a works of professionals. number of sites, with municipal au- thorities beginning to find solutions Programmatic approaches to specifically tailored to local conditions. urban investment, in which Given the scale of the challenge at the technical assistance is designed to national level however, the road ahead support investment in key projects may well be a long one. and to encourage an appropriate 12 Overview and Challenges INTRODUCTION 1 This report summarizes the key Bank (ADB), the UK Department for issues addressed and activities under- International Development (DFID), taken by the World Bank in an analyti- and the US Agency for International cal work on municipal solid waste Development (through USAEP and (MSW) management in India in 2004 urban development program). and 2005. The activities aimed to The work was undertaken with an contribute to the improvement of understanding that MSW is an impor- urban environmental conditions by tant issue both in its own right, and as helping clients to identify and address a practical measure of a municipality's barriers to improved solid waste larger capacity. The scope and com- management. These clients and local plexities of the MSW agenda are such partners--mainly state level--worked that practical solutions are not one-off in close collaboration with the Bank. interventions, but require ongoing The work relied heavily on Indian concerted effort by cities and state specialists who were supported by governments, working closely with targeted inputs from international community organizations and NGOs, experts. Work was carried out in a with the support of the international highly cooperative and iterative development community. manner, with shared ownership of its results ­ the working papers summa- The work focused on three states rized in this report. The work's larger where World Bank urban projects are impacts can be discerned in changed in preparation: Andhra Pradesh, approaches and procedures to waste Karnataka, and Tamil Nadu. Most of "I have got on top of the problem, Sir. From this height the view is fantastic!" management, and increased local the analytical work was carried out capacity to carry these through. in Andhra Pradesh and APPROACH AND METHODOLOGY Karnataka, where there was particularly strong The approach adopted entailed client interest and engage- working closely with clients to define ment. This work initially issues where the Bank can provide covered six cities and added value. It also involved extensive included preparation of collaboration between colleagues MSW Action Plans, within the Bank, the Water and which were tailored for Sanitation Program (WSP), and the large towns and larger development community, smaller cities. including the Asian Development 13 Improving Management of MSW in India A key objective for municipalities upgraded urban services, including was to develop realistic infrastructure sanitation and solid waste. plans for sanitation. These would The Union Government in Delhi was provide a basis for justifying priority engaged principally through the Central investments and attracting private sector Pollution Control Board (CPCB), and the investment. Initially, the issues raised by Ministries of Environment and Forests counterparts tended to be technical, and (MoEF) and Urban Development limited attention was given to finance (MoUD) were also directly involved. and implementation. In attempting to Interaction with these government bring more meaning to these discus- agencies focused on policy level issues. sions, the concept of preparing the city specific Action Plans emerged. The The analytical work in select munici- development of these pilot Action Plans palities identified appropriate mecha- (initially for six municipalities and later nisms for increasing private sector expanded to cover three more cities in participation as a strategic priority ­ hilly areas in other states), provided particularly in treatment and disposal. critical data, insights into constraints Private provision of waste collection and and opportunities, and informed discus- transportation services is quite common, sion of the options available to the but practical, empirical information on respective municipalities. In addition, more complex systems was not available. detailed work undertaken in Hyderabad Taken together, the analyses provided a included the closure of old waste starting point to bring regulators and dumps. Together with related analytical potential investors together and some work, these discussions led to the initial discussions were held to identify identification and development of and address barriers to increased invest- realistic approaches on a broader scale, ment. which in turn were discussed at state FEEDBACK and national levels. A Technical Round Table on the The work employed a bottom- study outcomes with key national and up approach designed to build on state agencies and other interested existing reform processes while parties was held in October 2005 to fostering an environment in ensure that the findings reflected the which successful new MSW perspectives of different stakeholders. projects are likely to find These consultations reinforced the need sources of investment for better systems management, institu- and support. Expected tional and financial reforms, effective synergies between contracting procedures for private sector reform efforts and investment, capacity building, and better MSW did emerge in the understanding of the community and process of balancing social dimensions of MSW management. "He is a new recruit. He fiscal responsibility with doesn't know the color code and can't read!" the pressures to support 14 Overview and Challenges SOLID WASTE SYSTEMS AND MANAGEMENT IN INDIA 2 RELEVANCE OF MSW ing garbage that are features of many urban areas can have serious local Increasing urbanization in India is environmental impacts. Identified a part of the global trend with 27.8 impacts can be serious (such as percent of India's population (285 anecdotal stories of animals dying million) of the total 1027 million living after drinking polluted surface water) in urban areas (as per the 2001 census). but are typically localized at present. The number of towns and cities have The broader environmental concerns increased to 4378 of which 393 are Class-I1 towns, 401 are Class-II2 come from the large and growing towns, 1,151 are Class-III3 towns and scale of the MSW problem and its potential long-term consequences. At remaining are classified as small the same time, MSW clearly does have towns with populations ranging health consequences, especially when between 20,000 to less than 5000. The it is related to the broader sanitation number of metropolitan cities having issue through concerns such as million plus population has increased reducing open defecation and man- to 35 as per 2001 census, and this has agement of drainage systems to also seen growing public concern with prevent urban flooding, as well as the exponential increase in sanitation and role of dumped environmental issues. garbage in Urban sanitation and environment encouraging issues are clearly contributors to basic disease vectors health conditions in urban areas but like insects and MSWM has a lower priority than rats4. water supply and sanitation. Although Another very incidents such as the plague episode in important Surat suggest that there are important dimension is the health aspects to MSW, it is basically very large an environmental issue rather than a numbers of health one and certainly the recent people involved pressures in India for improved MSW in this sector, have had an environmental focus. The whether as various "smoky mountains" of burn- 15 Improving Management of MSW in India "scavengers" or "ragpickers", (infor- taken important initiatives, and the mal waste collectors,) or municipal state governments are giving this issue workers. The numbers of people and more attention and providing in- their roles are important in any effort creased resources. Private sector is to improve the management of MSW interested and increasingly involved. although this dimension is often However, progress is patchy and there under-appreciated. Some progress has is no overall coherent program, been achieved under this activity to although state level initiatives are clarify this complex area emerging and the Union Government but much more remains to is starting to play a greater coordinat- be done. ing role. However, perhaps the There is no reliable national data main reason for paying on waste management, covering either increased attention to man- the technical or the financial aspects agement of MSW is the reality and therefore any overview figures that MSW is normally the single represent, at this point, approxima- biggest activity that a municipality tions. Given that MSW is inherently a undertakes ­ sometimes 20-50% of municipal function a top-down "No sir, That's not a well-known total expenditure and sometimes more approach to data collection would be mountain range. That's the... than all the other functions combined costly and not very reliable. However, repository of the city's refuse" ­ and the municipality's ability to there is a need for good management manage MSW well, is a clear measure and comparative data at the municipal of its overall effectiveness in providing and state level and this issue needs to services to its citizens. be given more attention. In terms of SCALE OF THE CHALLENGE waste quantities and characteristics, a major study was carried out in 1995 by The widespread public concern NEERI. CPCB has commissioned an about the poor update of these estimates, and the level of MSW results are expected around mid 2006. management in most urban A Background Report prepared centres tends to under this activity summarizes the obscure the fact readily available information and that there are provides an indication of the scale of some good ex- the problem.5 This Report compiled amples and some information from various sources and relatively well estimated that in year 2000, the major managed systems. urban centres in India generated about There are numer- 100,000 tons per day (tpd) of munici- ous examples of pal solid waste. cities becoming On an annual level, therefore, cleaner. A number approximately 35 million tons of MSW of cities have 16 Overview and Challenges Overview of Main Components of MSW MSW management covers the full cycle from collection of waste from households and commercial establishments through to acceptable final disposal. In the process, efforts are made to reduce the final volumes, through recycling and materials recovery, as well as processing/treatment. The accompanying diagram outlines the typical system of waste management in India. An analysis along these lines should be carried out for any municipality, as a first step to understanding and dealing with the necessary upgrading of the system. 17 Improving Management of MSW in India is generated. Other sources suggest Fig.1) tend to generate smaller per that the figure may be considerably capita loads and therefore proportion- higher ­ up to 45 million tons annually ally less waste. The average waste ­ but the magnitude of the challenge is quantities vary between 300 to clear. An analysis of data available 500gms/capita/day depending on the with the CPCB shows waste genera- type of Urban Local Body (ULB) by tion has been found to be a function of population. consumption and production activity, On the basis of plausible estimates and thus strongly affected by house- for the increase in the urban popula- hold income and local production of tion and for increased per capita waste goods and services. Therefore, the generation, the total annual volumes scale of the task at the level of indi- could more than double by 2015 and vidual cities is more relevant. For double again before 2025. At that example, Mumbai generates about point, urban India can be expected to 7,000 tpd (close to 2.5 million tons per be generating over 150 million tons per year); and Delhi generates about 6,000 year of waste. These estimates are tpd. Smaller cities (as referred in Box 1 : Progress in Waste Management in Hyderabad The Hyderabad urban agglomeration contains an area of about 1,864 square kilometers, with 9 municipalities, and 106 gram (village) panchayats. The city generates 2,200 Metric Tons (MT) of solid waste. The residential sector contributes about 65 percent of the total solid waste, it follows that commercial sector contribute the remaining 35 percent. Door-to-Door Collection from Residents - There are 3,850 notified garbage collection centers, which are attended every day. The residents dispose of the garbage directly into bins at the nearest notified centers. In some areas, residents deliver garbage to rickshaw (tricycle) pullers under the Voluntary Garbage Disposal Scheme (VGDS). Four hundred sixty- three Resident Welfare Associations covering 60,000 houses are using the VGDS at present. This program has also been extended to 350 slums, where neighborhood committees are using the scheme to effectively manage their solid waste. Street Sweeping - Seventy-five percent of the city's area is now being cleaned by the private contractors both day and night. These include 14 self-help women's groups managed by Development of Women and Children in UrbanAreas (DWCUA). Under privatization, the Municipal Corporation of Hyderabad introduced a scientifically designed and structured unit area and unit rate system for cleaning and transport works. Enforcement System for Control of Littering and Debris - The Municipal Corporation of Hyderabad has introduced a separate enforcement system to levy fines and charges on residents or commercial establishments for littering and dumping. Eleven mobile enforcement squads are deployed in the city to constantly track any littering or dumping on the streets and fine the offenders. For example, during a recent six-month period, more than 5,000 offenders were caught and fined a sum of Rs 4 million. This has considerably reduced public littering. This enforcement system is being strengthened with regular monitoring. Doorstep Collection from Bulk Garbage Generators - Under the principle of "users pay, beneficiaries pay, and pollut- ers pay," the Municipal Corporation of Hyderabad has introduced a scheme for collecting user charges from bulk garbage generators in the city. One thousand seven hundred establishments--such as hotels, restaurants, function halls, hospitals, markets, commercial complexes, and so on--that generate bulk garbage are identified and classified into 12 categories for levying user charges. During 2003­04, 20 transport work packages were proposed to be launched for providing doorstep collection to these establishments and collecting user charges of Rs 20 million. Source: WBI Training Module on SWM 2005. 18 Overview and Challenges approximate and undoubtedly in- Fig. 1 : Variation of Solid Waste Generation per capita creasing efforts will be made to reduce and Income level the volumes of waste generated and to increase the rates of recycling and recovery, so as to reduce the size of the disposal problem. Nevertheless, the problem has the potential to over- whelm municipalities, both literally and figuratively. These projections are fully consistent with international experience ­ a recent World Bank study for China showed even more dramatic projections for waste in- creases there.6 FINANCIAL ASPECTS Fig. 2 : Variation of MSW Generation by Size of City Lack of investment is the reason most often given for lack of progress on MSW upgrading but there are considerable funds available in India for urban infrastructure investment and the constraints are more complex than a simple lack of funds. Box 2 : Improved MSW Management in Nagpur Nagpur, in Maharashtra state, is a major center of education, culture, and commerce. It has a population of more than 2.1 million and covers an area of about 220 square kilometers, distinguished by ethnic, cultural, and religious variety. It is divided into 10 zones and 45 divisions. It is estimated that 700­800 metric tone of garbage are produced every day in Nagpur. The Nagpur Municipal Corporation (NMC) authorities earlier found it difficult to provide cost-efficient service to citizens; therefore, MSW management was outsourced in 30 Municipal wards to private sector organizations, such as the Center for Communication Development (CDC). The CDC was made responsible for primary garbage collection service of the Lakad Ganj zone (eight wards), which subsequently increased to nine of ten zones, as part of the Swachta Doot Project. The organization started with awareness building among the citizens and providing complete range of MSW management, includ- ing street sweeping, door-to-door garbage collection, container lifting, dumping, recycling, and vermicomposting. Daily door-to-door garbage collection is the core of the Nagpur ­ Swachta Doot model. Trained laborers collect the waste from households and shops everyday 365 days a year. The service is provided between 6:00 A.M. and 1:00 P.M.. Swachta doots (loaders of garbage into containers) use bells and whistles to alert customers of their arrival in the neighborhood, and also pick up the dustbins directly at the doorstep to assist elderly or infirm citizens. Specially designed vehicles are used to transport the garbage directly to transfer stations. The containers from transfer stations are brought to landfill sites outside the city by the NMC workforce. There is close cooperation between the CDC and the municipal bodies so that waste is not stored longer than necessary in residential areas, which has resulted in significant improvement in cleanliness of streets. Source: WBI Training Module on SWM 2005. 19 Improving Management of MSW in India MSW management is often the Typically the MSW management largest single area of annual expendi- expenditure for smaller towns ranges ture for a municipality in India. Given between 30-50 percent while for large the relatively low standards of finan- cities it ranges between 15-25 percent. cial management and accounting in For example, figures for Hyderabad most cities, expenditures by activity show that Rs 750 million (approxi- are not usually recorded and so mately $19m) was spent on solid comprehensive data is not available waste in 2004, which is about 15 but it is widely accepted that 20-50 percent of the Corporation's operation percent of the typical municipality's budget, and in Bangalore, expendi- (revenue) expenditure goes on MSW. tures of Rs 6400 million (approxi- mately $160m) in 1999 had almost doubled by 2001, to cover major upgrading of the municipality's systems. Using data compiled for the Background Report, current operating costs for MSW (not including proper treatment and disposal) are typically quoted in the range of Rs 60-500 capita/annum7 (see Fig.3), with the higher numbers in metros which have more advanced and more complex systems8. The current costs also vary "This is the most prosperous neighborhood in the area. for each municipalities depending on We even generate the maximum waste." the level of MSW management ser- vices, such as area covered for street cleaning, door to door collection, percentage of waste collected and transported etc. In simple terms, with an urban population of the order of 400 million by 2015, the annual running costs of basic MSW systems for all urban dwellers would be of the order of Rs 24-200 billion. This is assuming an increase in coverage of the services but no upgrading of the systems. As part of background study it was also observed that several munici- palities regularly use the option to contract out a part of MSW Manage- 20 Overview and Challenges ment services to cope with increasing important to note that level of MSW demand to cover new urban areas management service coverage in some and improve the quality of services, municipalities is quite low. Therefore which typically include use of private lower costs per ton of MSW may not contractors for street cleaning, collec- fully represent quality of MSW man- tion and transportation of waste. The agement in a city. typical expenditure on sub-contract- Various estimates of overall ing ranges between 10-25 percent of investment recurring municipal budget, and needs have been often does not get reflected as cost of made by MSW management. A brief overview different of data from some municipalities in parties, particu- Karnataka indicates that the cost of larly the finan- MSW management per ton of waste cial community, handled, as incurred by private but these contractor is significantly less (in the figures are range of 20-40 percent) compared to typically not for the cost of waste handled by munici- quotation and palities. One of the reasons for in any case are relatively lower costs incurred by the based on contractor is quoted as differential different wages, particularly when private assumptions. In the absence of any contractors tend to pay lower than real data on the actual costs of landfill minimum wages to their sanitary construction (which in any case will workers. Table 2 provides an indica- vary with local circumstances), in- tive cost of MSW management for the formed estimates indicate additional municipality and private contractor. It costs of about Rs 300-500 per ton are is observed that smaller municipali- needed to meet the requirements of ties tend to use services of private the MSW Rules. Over the next ten contractors much less compared to years, with annual waste quantities larger municipalities. However, it is Table 1 : Projected Municipal Waste Generation for the Urban Population in India Year Projected Urban Waste generation rate Total MSW generation Population (in thousands)* (gms/capita/day) (million tons) 2000 281255 327 33.7 2005 315276 391 45.0 2010 355205 471 61.0 2015 401898 571 83.8 2020 455823 696 115.8 2025 517178 848 160.1 2030 586052 1032 220.7 *Population projection data from United Nation Population Division Source: Background Report. 21 Improving Management of MSW in India Fig. 3 : Operating Costs for MSW* * Does not include treatment and disposal. Table 2 : Indicative Costs of Existing MSWM for 10 sample Towns in Karnataka Population Waste Percentage (%) share of Percentage(%) share of Cost per ton Cost per ton Overall cost 2001 handled waste handled per day by Annual MSWM costs for for municipality for contractor Unit Tons per Municipality Contractors Municipality Contractors Rs Rs Rs day /per ton /per ton /per ton Small Town Town 1 53,043 12 75 25 86 14 2,000 649 1,550 Town 2 48,000 10 100 0 100 0 656 NA 656 Town 3 47,060 9 100 0 100 0 1,477 NA 1,477 Town 4 49,408 4 0 100 0 100 NA 573 573 City Municipal Council Town 1 274,105 60 43 57 83 17 3,449 525 1,792 Town 2 248,592 52 37 63 66 34 1,639 495 913 City Corporation Town 1 317,000 60 75 25 90 10 2,069 690 1,724 Town 2 399,600 110 50 50 79 21 2,518 658 1,588 Town 3 398,000 110 40 60 55 45 1,730 946 1,260 Town 4 427,929 126 33 67 67 33 2,700 659 1,339 Source : Data collected by consultants for Action Plan study (2005) 22 Overview and Challenges doubling to 70m/t/a or more, the tracked but a recent review of a large required total new landfill capacity number of cities provided a good would be 500m tonnes. Using a unit snapshot of the current situation. The cost of Rs 200/t the investment review collected responses on progress requirements would be Rs 100bn. on each of the main components of (about $2.5bn) over the decade. This MSW covered in the Rules and the figure represents the probable order of results are presented in Fig.4. magnitude but there are many impor- The immediate deficiencies are tant variables, such as the rate of evident in terms of waste collection, implementation and the level of treatment, and disposal. However, the investments in processing facilities, technologies are well known and well which would reduce the landfill understood and the problem is not one investment required. The cost of of overall technological challenges but treatment will vary for various treat- of the difficulties in adapting and ment options and application may be limited by requirement of land9, operational costs and management "I said a simple graph. You complexities of various available didn't have to be so realistic!" treatment techniques. The background study suggested the approximate cost comparison for various technologies in India (Table 3). PROGRESS OF MSW MANAGEMENT Over the years, the problems of MSW have been highlighted by civic and environmental activists, resulting in direction by the Supreme Court to MoEF to draft Rules on MSW, which were gazetted in 2000. Annex 1 presents a summary of MSW Rules including institutional roles. In Table 3 : Relative Capital Cost of various October 2004, the Supreme Court MSWM Technologies in India issued further specific directionto the larger cities to demonstrate progress Technology Assumed MSW Land required Cost on meeting the requirements of the Quantity (Metric ton) (acre) (Rs in million) Rules. Biomethanation 150 6-7 60-90 There are some examples where results have been achieved but overall Pelletisation 125 3-4 40-50 progress has been weak. There is no Incineration 100 2-3 60-70 systematic collection of data which Composting 150 7-8 15-20 would allow implementation to be 23 Improving Management of MSW in India implementing known technologies to specific local conditions. The typical expression of the current problems is lack of funding to implement technical solutions (and it is clear that the solutions required by the MSW Rules are expensive). However, much can be achieved even within the current constraints but guidance and technical support are needed. The fundamental underlying problems are in fact financial and institutional. There are some indi- vidual good examples and (not surprisingly) the larger municipalities tend to have better systems in place but overall, financial, human and institutional resources are limited. A realistic timescale will be required to see substantial progress, although there is increasing real commitment by local politicians and senior officials and a growing body of information and expertise to support practical efforts to improve MSW. At "Five rupees? For carrying so much garbage down national level, MoUD has realized the four floors! And I give you Rs. 10 for the bottles !!" need to address MSW issues on Fig. 4 : Progress on Compliance (mid 2004) priority and the 12th finance commis- sion has allocated grants to the tune of Rs 25000 million covering 423 Class I towns. 24 Overview and Challenges 25 Improving Management of MSW in India KEY ISSUES 3 Interactions with key clients and data and analysis was required but with Bank colleagues on MSW initially such data is not available. In order to revolved around a number of technical have some specific case studies, it was questions, relating to processing agreed with the participating state technologies and to landfills. After governments that pilot "Action Plans" series of discussions with ULBs, data would be developed in a small num- support from pilot MSW management ber of municipalities. action plans and stakeholder consulta- IMPORTANCE OF ACTION PLANS tions, the most urgent issues to be MSW management is a key addressed emerged as the institutional municipal task and local elected and financial aspects. A number of officials increasingly feel pressure to difficult technical questions have to be deliver "clean cities" but there are resolved and effective solutions can other issues, such as water supply and only be achieved through sustainable sanitation, which are often at least as institutional and financial mecha- urgent and important as MSW, and nisms. In moving to address these often more so. In order to move issues in more detail, municipal level forward toward compliance with the MSW Rules while balancing municipal priorities, a useful tool would be the development and implementation at the local level of clear plans for upgrading MSW facilities and sys- tems, at a pace which is locally accept- able and sustainable in the long term. It was agreed that preparation of a number of pilot or indicative examples plans would be a very worthwhile contribution of the Bank's analytical work. A first set of pilot Action Plans was developed for three cities each in Karnataka and Andhra Pradesh10, "We missed the garbage truck again! Perhaps this is what they covering a range of size and circum- mean when they talk of waste-to-energy!" 26 Overview and Challenges stances. The Action Plan was intended the concept is still developing and that to set out the current situation, the different versions are emerging. These upgrading required, and to outline a efforts include working with WBI to realistic and financially sustainable develop training and capacity build- program for moving ahead. (The ing systems to support MSW develop- outputs were at the level of broad ment. options, not specific investment plans.) Data Developed under Action To help anchor these plans a simple Plans but comprehensive spreadsheet The Action Plans draw on avail- financial model for MSW was devel- able average figures on waste genera- oped and refined, in consultation with tion, characteristics, existing schemes clients and donors in India. The and assets, together with city specific purpose of the model is to help cities data provided by the municipalities understand their current expenditures through local consultants and some on MSW; allow them to estimate the specific survey and data collection. costs of different options; and ­ above There is a wealth of experience within all ­ to generate informed discussion the health department staff and the of possibilities and priorities. (It is revenue department staff of the consistent with more sophisticated municipality about the various facets models and approaches being devel- of waste management, including oped, such as those under the USAID financial and institutional aspects but FIRE Program, but is not intended to this is rarely coordinated and docu- substitute ongoing efforts to upgrade mented. A major contribution of this overall municipal financial manage- work has been to help municipalities ment systems.) It should be noted that a similar Action Plan approach has been widely adopted, including a recent requirement by the Supreme Court that the 59 largest cities in the country prepare some form of plan. This first round of pilot Action Plans provide useful results (although sometimes of mixed quality) and their outcomes generated discussion with the municipalities themselves and the state governments. Subsequently, in order to understand the complexity of issues in hilly regions, three hilly towns were supported in the second round of pilot Action Plans in close collaboration with CPCB11. The Bank is now supporting efforts by CBCP to expand the approach, accepting that 27 Improving Management of MSW in India to extract data on MSW from the benchmark indicators for MSW, along municipal accounts, in a format which lines such as these, is an essential step allows key parameters to be calcu- towards increased efficiency in the lated. (Very few municipalities nation- sector. ally keep their accounts in a way that FINANCIAL SUSTAINABILITY this data can easily be extracted). Almost every municipality in Table 4 summarizes some of these key India is under financial pressure. A figures, such as the cost per ton of small number have good financial MSW collected and the ratio of work- management systems in place and are ers to waste. The data is presented as operating within acceptable budget ranges, without identifying the constraints. However, the majority do individual cities, given the uncertain- not have adequate accounting and ties in some of the numbers and the budgeting systems and do not operate very different circumstances of the on a multi-year capital and financial cities, making simple comparisons planning basis. This makes the process misleading. The development of Table 4 : Summary of Key Parameters from Action Plans Parameters for Benchmarking Large Cities Mid size Towns Small Towns Typical (Above 1.5 (between 0.5-1.5 (less than 0.5 Range for million) million million Hilly Towns MSW management expenditure in Rs per 165-175 150-180 120-150 350-400* capita per annum MSW management expenditure as % of total 15-25 15-25 20-40 25-45 municipal revenue expenditure MSW management cost per ton (Rs ) 900-1200 800-1200 800-1600** 2500-3000# Relative costs per ton by size/population 0.22-0.27 1.00-1.11 2.78-5.00 4.44-7.78## (taking mid-size town as 1.00) Salaries as % of overall MSW management costs 45-55 60-70 65-75 80-90 Ratio of worker per ton of waste managed 3.5-4.5 2.5-6.0 2.5-5.0 8.0-16.0 Cost of primary collection as % of total MSW management expenditure 25-30 40-70 30-40 20-40 Cost of transportation as % of total MSW management expenditure 20-25 10-20 10-15 15-25 Cost of MSW management contract as % of total MSW management expenditure 35-40 25-30 5-10 Less than 5 Note : These nine Action Plans have provided insights in managing MSW and have been the basis for identifying many of the key issues discussed below. * For hilly towns the municipal expenditure is generally high due to specific revenue importance such as tourism and seasonal variation in population etc ** Higher percentage of MSW management expenditure is observed in smaller cities where sub contracting of MSWM services as well as level of services is generally lower. # Higher costs in hilly towns is attributed to difficult terrain and extreme climatic conditions # # MSW Management costs in hilly town varies significantly depending on geography and tourist importance 28 Overview and Challenges of understanding costs, commitments amount that people are prepared to and revenues difficult for specific pay (in cash and in other terms) for activities like MSW management. In waste removal. In practice, in most order to address this shortcoming, the municipalities, many households spreadsheet model was used in already pay a waste collector to collaborative manner with municipal remove rubbish from the house and staff in order to improve the under- also often pay some element of an standing of financial aspects of MSW MSW charge to the municipality management (often in the property tax). Estimation of the value of the public benefits is A key aspect of devolution is an much more difficult but this is a emphasis on increased self-sufficiency benchmark against which public for cities, within a framework of some investment in waste management ongoing financial support from higher should be assessed. In practice, these levels of government. A basic objective public benefits are typically valued at of the Bank's municipal reform efforts a very low level in most communities, is to support this move towards as evidenced by the lack of general greater self-sufficiency, including concern over the impacts of waste improving accounting and financial dumping. management systems and assisting in increasing revenue collection. The The financial challenge for city provision of MSW management managers is to expand the scope of services ­ a core function of any city ­ their MSW operations to address the is a good test bed for upgraded treatment and disposal issues, which systems and the selection of three states where municipal reform opera- tions are under way was a deliberate effort to make this link. PRIVATE BENEFITS AND PUBLIC GOOD MSW management systems provide two broader types of benefits. The first is the removal of waste from the premises (domestic, commercial etc) and from the locality (block, street, colony). This type of benefit is that most immediately relevant to the typical citizen. The second type of benefit comes from the treatment and final disposal of the wastes in a way which is environmentally sound. The extent of the private benefits can be estimated, in economic terms, by the 29 Improving Management of MSW in India can be expected to increase costs of the total MSW expenditure goes on significantly while typically not collection, 20 percent on transporta- generating any additional revenue. tion and only 5 percent or less on However, to move in this direction disposal. Table 5 and table 6 provide: requires a good understanding of the (i) an approximate indication of real current costs and a realistic expenditure patterns across munici- evaluation of the options for new palities (ii) break up of costs from a treatment and disposal systems. In typical pilot town based on data these circumstances, improved collected as part of Action Planning financial management is critical. study. COSTS OF MSW MANAGEMENT Another important factor is the There is no detailed accounting of significance of economies of scale in current expenditures on MSW in most treatment and landfilling. Small municipalities and there is very little systems, say below 100t/d, which experience in constructing and operat- would represent a population of 300- ing treatment and disposal systems. 400,000, are likely to have significantly There are some unit costs for collec- higher unit costs, especially for tion and transport and some authori- technically sophisticated and complex ties (such as KUIDFC) are developing systems. This is one of the key reasons detailed figures. Reasonable estimates that alternative technical requirements can be made for storage and transport are now being considered for small equipment but estimates for treatment systems and that regional solutions and landfilling are generally not may emerge, driven by cost issues. reliable. The typical distribution of Estimated Good Practice MSW expenditure on waste management for costs: a city is that about 75 percent or more There is no base of data on actual costs but order of magnitude costs for a typical MSW system have been estimated by knowledgeable special- ists in India to be roughly as follows, looking at the average cost per ton managed. However, treatment and disposal costs in particular are very site specific and there are many factors which change these order of magni- tude numbers for any given case. Results from the pilot Action Plans (summarized in Box 3) suggest that these numbers may be low, given "You can give the job to me. We have all the necessary expertise that actual current costs appear to be and experience" generally significantly higher. How- ever, few municipalities are managing 30 Overview and Challenges Table 5 : Summary of Annual Operational Expenditure on Various Activities (excluding contract costs) in MSW Management as Percentage (%) of Annual MSW Management Expenditure in Selected Municipalities in Karnataka Population Waste Supervision Primary Transport Sweeping Process Contract as handled Collection disposal & % of MSWM budget Small Town Town 1 53,043 12 9 39 14 38 0 14 Town 2 48,000 10 7 38 17 38 0 0 Town 3 47,060 9 7 41 10 42 0 0 Town 4 49,408 4 0 0 0 0 0 100 City Municipal Council Town 1 274,105 60 4 42 12 42 0 17 Town 2 248,592 52 10 34 22 34 0 34 City Corporation Town 1 317,000 60 6 40 14 40 0 10 Town 2 399,600 110 10 41 8 41 0 21 Town 3 398,000 110 10 40 11 39 0 45 Town 4 427,929 126 4 38 7 37 14 33 their wastes for efficiency or cost minimization and it should be pos- sible to bring costs more into line with Collection of wastes: 300-400 Rs/ton Transport of waste: 300-400 Rs/ton Treatment/disposal "You want a challenge? (average costs, Let's see you turn those dumps into malls." excluding land): 400-600 Rs/ton Total cost per ton of waste collected and disposed: 1000-1200 Rs/ton (approx. $25) the good practice estimates. For example, it is reported that Bangalore is contracting on BOT basis for waste treatment and disposal (in a scientifi- cally designed landfill), at a price below Rs 200 per ton. FINANCIAL PLANNING In the absence of adequate ac- counting and budgeting systems in ULBs, a simple spreadsheet based financial model (referred in an earlier section) has been developed. The 31 Improving Management of MSW in India Table 6 : SWM Data from One Pilot City, as taken from Accounts and also Presented in Financial and Functional Terms 2003-04 in Rs percentage A. Solid waste management Heads of Account (as taken from municipal accounts) Health Inspectors 275,256 Sanitary Mastrys 260,374 Establishment Permanent 3,628,000 Temporary ( same work same pay) 844,600 Other Items Conservancy materials and purchase of dust bins 10,428 Contracts for Gandhinagar and other area cleaning 948,000 Drivers and loaders payments 144,000 Vehicle fuel 328,308 Tractor rents 101,619 Vehicle maintenance and insurance 246,536 New hearse van 611,708 TOTAL 7,398,829 B. Financial Classification of costs (using data from Section A above) Supervision 535,630 Sweepers 4,472,600 Driver+loaders 144,000 Salaries total 5,152,230 Fuel + vehicle hire 429,927 Vehicle Purchase 611,708 Vehicle repair 246,536 Sanitary Materials, dustbin , Uniforms etc. 10,428 Sanitary Contracts ( external service) 948,000 TOTAL SWM EXPENDITURE 7,398,829 C. Functional classification of operational costs (extracting capital expenditures) Municipal system costs Supervision costs 535,630 9 Primary collection 2,241,514 38 Transport 820,463 14 Processing 0 0 Disposal 0 0 Sweeping 2,241,514 38 Total of Municipal system 5,839,121 100 Cost of Contract system 948,000 14 TOTAL COST OF SWM OPERATIONS * excluding cost of hearse (611,708) 6,787,121 Waste handled by Municipal system ( tpa) 2,920 Waste handled by contract system (tpa) 1,460 Cost per ton of waste handled by municipal system 2,000 Costs per ton of waste handled contract system 649 32 Overview and Challenges model12 is used to estimate ongoing portion of municipal expenditures go expenditure and to support investiga- on wage and salary costs, with MSW tion of MSW investment options. often being one of the largest items. In practice, few ULBs currently have The financial planning using the scope for increased expenditure on model demonstrates that the ULBs can equipment or on capital works. Thus, considerably improve the MSW improving the capabilities and finan- management service levels with cial strength of ULBs is a key objective limited incremental costs, maximizing to be addressed on priority13. How- the system efficiencies. While Annex 2 ever, work done in Karnataka, for presents the typical results of option example14, has allowed estimates to be based financial analysis in one of the made of the realistic scope that exists pilot cities as a case study, the lessons in a sample of municipalities for from this exercise are presented in the increased capital expansion. box that follows. Also, the key obser- vations include the following: Allocating Costs and Charges ULBs Affordability In outline planning, little differen- tiation is made between household The financial situation of most and commercial wastes, since the ULBs (outside of the metros) is rela- characteristics are broadly similar. tively weak and many are unable to Similarly, street sweepings are gener- fulfil the responsibilities that are being ally included with the overall waste passed to them under decentralization loads, for basic system sizing etc. efforts. At present, a very large pro- Box 3 : MSW Management Costs ­ Observations from Pilot Action Plans Typically smaller municipalities spent between 20-40 percent of operational budget on MSW management. Higher expenditure is observed in hilly areas due to the terrain conditions. However, MSW management budgets in bigger cities did not exceed 20 percent of the municipal operational budgets. The major share of MSW management budget is spent on collection, to the tune of 75 percent with significant part (up to 75 percent) spent on salaries. The average cost MSW management per ton of waste in plains varied between Rs 800 to Rs 1600. The cost of MSW management in hilly areas is up to double this amount. There seem to be some relationship although not fully established, between the unit costs of MSW management vis-ŕ- vis size o the municipality, The largest pilot city is able to provide complete service at relatively lower than the average cost which probably reflects scale of economy and competency of management. All the pilot towns have limited contracting for services ranging from sweeping, primary collection to transportation. The unit cost of private sector operation is found to be about 30 to 40 percent lower than those of municipalities own operations. Thus indicating scope for efficiency improvements to considerable extent. Though limited, community based collection systems are proving to be effective in demonstrating: (i) devolution of primary collection responsibilities (ii) the concept of paying for the service (approximately Rs 20 per household per month 33 Improving Management of MSW in India However, when looking into the estimate confidently, especially since details of systems design and when there is such limited experience. The allocating costs to different waste uncertainties are illustrated by infor- sources and system elements, it is mal reports of recent tenders in Delhi important to develop more detail so (for collection and transport) and in that an allocation can be made to the Bangalore (for treatment and different sources of the costs involved. landfilling) where the difference This is essential as the basis for between low and high bids is of the designing cost recovery schemes, order of 2-3 times. For planning which should reflect ­ to the best purposes, municipalities should practical extent ­ the charges to be investigate options for both self- recovered from the different parties owned and operated systems and involved. Decisions on cost recovery contracted systems, noting the high for MSW management services are uncertainties at present on realistic part of mandate of the elected officials contract charges. in any municipality but it is important Benchmark Costs for Landfills for the managers and planners to provide the officials with reliable Proper landfills are costly to site information and a range of practical and to construct, and since there are options. also significant operating and mainte- nance costs, the empty volume in a Costing Treatment and Disposal landfill actually has a real opportunity Municipalities often see private cost for the municipality. This oppor- sector participation as a vehicle for tunity cost of landfill (which is the last raising the capital. However, there is resort for any scheme) should be the not enough experience yet to assess benchmark for evaluating waste how cost effective and reliable is this treatment and disposal options for any approach. The costs of contracting out municipality. This can be estimated as "treatment" are even more difficult to the marginal (AIC) cost (over say 5-10 years)15. The importance of this figure "These youngsters are always smoking is for areas where landfill space is cigarette butts! Whenever I talk to them they tell me about the 3 Rs." limited ­ often because a site is close to being full and other sites are difficult and/or expensive. As the cost of space gets higher, there is an increasing value to treatment methods which reduce the volume required for each ton of waste collected. REVENUE STREAMS The government regulations have expanded the required scope of MSW operations to address the treatment and disposal issues. However, the 34 Overview and Challenges Box 4 : Lessons on Cost Management from Action Plans A good understanding of current and future costs and expenditure patterns is essential to MSW management system planning. The relevant information on current costs is generally recorded in municipal budget but not in a format which is readily usable by municipal planners The MSW management costs data needs to compiled and presented in a structured format to facilitate better planning.. The costs of an improved MSW management system is likely to be marginally higher than the current costs, provided ULBs undertake measures to improve system efficiency, particularly by rationalizing expenditure on staff costs.. Costs in most ULBs are dominated by staff salary costs, which ranges between 45-50 percent in large cities, increasing up to 75 percent for smaller cities. Increasing the coverage of waste collection while maintaining the present expenditure levels on staff is a realistic objective. Data from action planning indicates that costs of MSW management services using private contractors could be signifi- cantly lower than those of municipalities. The need and extent of private sector participation, however, needs to be seen in light of the quality of service delivery as well as the risks of service failure Involvement of community based organizations including SHGs need to be explored for improving door-to-door collection, which is found to be cost effective but difficult to scale up. Clear analyses of potential revenues from MSW need to be understood before taking up large capital investment on MSW management. With limited capacity for capital investment, many ULBs see involvement of private sector as a means to reduce costs and improve efficiency. However, many ULBs are finding it challenging to commit a tipping fee in order to keep the private investor interested. Several ULBs feel that meeting the requirements of MSW rules particularly in relation to requirements of designs of MSWM infrastructure could be expensive and often unaffordable. Therefore, the designs of such infrastructures, such as landfill needs to be related to site specific requirements and done in phase manner to fully comply with MSW rules. capital support to ULBs has remained management is the amount that they the same or diminished on account of are prepared to pay for this. On the devolution, so there is an increasing basis of simple assumptions, a house- need for self-sufficiency. The obvious hold would produce 600 kgs waste revenue stream from increased prop- per annum, which would translate erty tax and user fee concepts could into an annual cost per household of not materialize in majority of the about 600 Rs/t (say 50 Rs/month). municipalities due to public concerns Therefore, from these rough estimates and political reasons. Though the it would appear that the costs of ULBs hope to generate revenue improved MSW are broadly afford- streams from the waste, the critical able to non-slum areas. In case of solution is to move towards improved community based-collection systems, financial management with a clear the incremental costs would be of the understanding of current costs and a order of Rs 30. Some municipalities in realistic evaluation of the options for Karnataka and Andhra Pradesh have new treatment and disposal systems. recruited community based organiza- tions and resident welfare associations Paying for the Service (RWAs) authorizing them to under- A good approximation of the take door-to-door collection, which value that people place on MSW work through collection of user fee (in 35 Improving Management of MSW in India the range of Rs 30-40 per month) an attitude in some municipal manag- directly from residents. This has ers and elected officials that the allowed municipalities to reassign private sector should pay to take sanitary staff to focus on improving waste. This attitude is reinforced by efficiency of segregated waste collec- legal requirements (in at least one tion directly from the primary bins. state) that no government function For example, over the past year, should be contracted to the private Shimla Municipal Corporation has sector unless the government receives implemented MSWM user fee for a payment in return. door-to-door collection through NGOs While some components of the (monthly fee ranging from Rs 35 for total waste stream could have a net households to Rs 805 for big hotels). value if available in a segregated state The key issue is therefore less one of (e.g. organic waste from markets), affordability than one of political proper treatment and disposal of the priorities. overall MSW stream will have a net Royalty on Waste cost, in any realistic scenario. If a Early entrepreneurial efforts by municipality undertakes the treatment the private sector to generate revenue and disposal itself, it will have to from waste included the payment of a provide for these costs, which may be fee to the municipality for the right to offset in part by any revenue that can collect waste from certain parts of a be gained from specific components of municipality. This fact, together with a the waste stream, such as market belief that the private sector could waste. If treatment and disposal are make money from waste, resulted in contracted out, then there still will be a net cost which will have to be paid to the private sector. At best, a munici- pality may agree to provide waste at "Several landfills can come up zero cost (although in practice, it in the next two decades...provided of course we have land!" appears that there are often hidden costs to the municipality in such a deal). More recent contracts are being structured to generate competition among private sector providers, with the key parameter being the lowest net fee (usually per ton) to be paid by the municipality to the private contractor for complete treatment and disposal of the wastes, in accordance with all appropriate requirements. Waste to Income? Municipal officials understand- ably are looking for any potential 36 Overview and Challenges income that can be generated from tially explosive methane. Control of waste, to offset the cost of disposal. landfill gas is good practice for a Basic recyclable wastes (glass, plastic, number of reasons including safety, metal) are typically removed at the and raises the possibility of use of the point of collection. This reduces the gas for energy production (although total volumes and provides income to this is typically quite costly to set up). the groups involved but also reduces Methane is a powerful greenhouse gas the nominal value of the overall waste. and there are financial incentives for its control, in the context of addressing MSW in India has a high organic climate change. GEF funding has been content and therefore composting is a used to support MSW projects in other popular option. Some private compa- countries16 and there is potential for nies offer to take waste from munici- "carbon finance" through the Carbon palities and turn it into compost, on a Finance Business (CFB) at the Bank or commercial basis. The history of one of the other mechanisms that are government supported composting now emerging. The fundamental plants is generally unsuccessful in requirement in each case is that the India and a focused commercial "project" has some innovative aspects approach might be more successful. which reduce the greenhouse gas However, there is limited experience emissions below "business as usual". and care needs to be taken in setting The basic difference is that GEF up such approaches. provides an initial capital subsidy Waste-to-energy (WTE) is an while CFB provides regular payments approach which is being promoted for reductions actually achieved increasingly in India. There are a small during operations. number of WTE plants in India which There is growing interest in operate on a "commercial" basis but in seeking Carbon Finance for control- practice rely on significant govern- ling methane, especially given the lack ment subsidy, both capital and opera- of other revenue sources typically tional, particularly in the form of associated with landfilling. The preferential power tariff imposed principle is straightforward: capturing upon already financially weak power and destroying methane, or changing systems. Such schemes do have systems to prevent its generation, can potential to be part of a workable be the basis for claiming "Emissions MSW system but their technical Reductions (ERs)" and these ERs ­ performance needs to be confirmed once verified -- can be sold for cash and sensitivity to government support on an increasingly open carbon must be taken into account. market. As opposed to GEF grants, Carbon Finance which are applied at the construction When garbage is left to rot in piles stage, ERs are based on confirmed or dumps it typically releases consid- results from an operating scheme and erable amounts of "landfill gas" which become a revenue stream for a contains high proportions of poten- successful project, for a period of 37 Improving Management of MSW in India typically 7-14 years. Applying the usual."17 One particularly interesting principle of mass balance and assum- opportunity is the use of composting, ing the different parameters as recom- where careful processing of waste in mended by IPCC for India, it is aerobic conditions helps eliminate the estimated that roughly about 1.4 generation of methane. There are no million tons of CH4 which is equiva- clear indications or examples of CF lent to about 30.0 million tones of CO2 revenues generated by Indian agencies is generated from the MSW disposal in (municipalities or private operators) India per year. However, there is very from the MSWM business. However, limited practical experience. Table 7 provides a rough estimate of comparative and potential CF rev- A number of clear possibilities for enues for various treatment technolo- attracting CF exist. For existing gies. dumps, closing a dump in a way which prevents further release of Such finance could be very impor- methane could be eligible for Emis- tant in covering the costs of activities sions Reductions. Constructing new which are otherwise non-revenue landfills in a way which prevents the generating. Although simple in generation (or at least the release) of principle, the approach is new and the methane is another possibility, al- details are not well established, so though the protocols for Carbon there are a number of technical issues Finance require an innovative ap- which have to be resolved and there is proach which achieves additional a lack of experience with the proce- reductions beyond "business as dural requirements.18 Table 7 : Indicative Carbon Revenues potential Using Various MSW Management Technologies MSW treatment & disposal CO Emissions Potential Emission Carbon finance for 2 options (t CO E/tMSW) Reductions treatment of MSW 2 (tCO E/tMSW) Rs/tMSW 2 Assuming Landfill without LFG recovery as baseline Landfill with LFG recovery & flare 0.20-0.25 0.95-1.20 175-200 Landfill with LFG recovery and 0.21 (may be less if More than 0.95 More than 175 Rs/ton energy generation energy component is considered) Composting 0 (may be less if More than 1.16 More than 200 Rs//ton replacement of chemical fertilizer is considered) Biomethanation 0 (may be less if More than 1.16 More than 225 Rs/ton energy and fertilizer components are considered) More than 225 Rs/ton Source : Carbon finance business estimates. 38 Overview and Challenges The Bank team is working with In order to provide coherent the Carbon Finance Business (CFB) guidance to municipalities in rather group in the Bank and with clients, complex and changing circumstances, including the Governments of a number of state governments have Karnataka and AP and the cities of prepared or are in the process of Delhi and Hyderabad, to design preparing state policies or frameworks Carbon Finance projects with clients, on MSW, including all of the states including the Governments develop- covered in this activity. In Karnataka, ment for landfill remediation, for large the state policy on Integrated MSWM20 scale new projects, and for program- sets out objectives, key principles and matic projects, typically at the State technical guidance. It also makes level. reference to a range of contractual INSTITUTIONAL SUPPORT approaches that are supported by the state government (with model con- Role of State Governments tract documents in preparation). In Although municipalities have the addition, KUIDFC have prepared basic responsibility for MSW manage- detailed technical guidance on mod- ment, state governments will retain a ern collection and transportation significant role for the foreseeable systems (which could form the basis future. Apart from assisting in funding for a broader draft guidance manual.) and finance, State governments will have to provide technical advice and In Andhra Pradesh, an inter- assistance until municipalities have departmental Task Force established sufficient internal resources and by the Urban Secretary provides expertise to manage the MSW function guidance, through a formal Govern- successfully. The governments with ment Order. The overall objectives are whom the Bank is working on munici- to provide support to individual cities pal reform projects have established moving ahead on implementation clear functions and responsibilities in issues. The policy focuses on Waste relation to infrastructure investments Management framework, possible but the responsibility for ongoing technologies for different type of technical support on MSW issues has municipalities, government support to been less clear.19 State governments private sector initiatives through are now formally defining the respon- various contractual incentives and sibility for this support-- typically in constitution of a Technical Committee the Municipal Administration Depart- and State Level Official Committee for ment--although the relevant units are coherent technical and administrative relatively under-developed. There has decisions. In Tamil Nadu, the Com- been dialogue with state governments, missioner of Municipal Administra- particularly in Karnataka, on the tion has been working with all the mechanisms needed to provide the Class I cities in the state to prepare necessary support to the cities which individual Action Plans and a state want to invest in upgraded MSW framework has been prepared. The facilities and systems. situation in other states appears to be 39 Improving Management of MSW in India mixed, with some well advanced in MUNICIPAL INSTITUTIONAL support to municipalities while others STRUCTURES have done little, because of lack of The traditional structure under skills, resources or enthusiasm. This which MSW is addressed in a Urban issue is currently under discussion Local Body (ULB) is for the street with CPCB. The objective is to develop sweepers and all other staff involved a practical coordination approach in MSW directly to be under the across states, ideally with the Urban control of the Public Health Officer (or Ministry, which could be supported equivalent), while the machinery by the Bank. needed (trucks, tractors, lorries etc) is While individual states are mov- under the control of the Chief Engi- ing ahead to develop coherent ap- neer. This system has worked as long proaches within their own jurisdic- as the MSW system only covered tions, there is a growing need for an "lifting" of waste from primary effort at the national level to ensure collection points and then transporting that the lessons learnt from the more it to a dumping ground. In most advanced states are shared with the municipalities, there is high level of slow starters. Though there is limited inefficiency reported in the manage- experience in private sector participa- ment of primary collection, as well as tion, individual states have realized high down time and inadequate road the efficiencies and economic gains worthiness of vehicles carrying solid and appropriately facilitated the PSP waste. through state policies. These need to Various models are possible for a be revised on a regular basis to meet more coherent structure which would changing trends. Box 5 : Government of Karnataka State : Policy on Integrated MSW Management The policy aimed at catalyzing modernization of MSW Management services uniformly in the state includes : Specific plans to improve seven components including segregation, storage at source, primary collection, secondary storage, secondary transport, treatment and landfill; Plan for mechanical handling of waste minimizing human contact with waste; Specific normative standards including standard tool kits for BOT or O&M practices; manuals on specifications of equipments and vehicles and on treatment and landfill issued for all type and size of local bodies; and approach for information, education and communication Specification for various type of equipments and vehicles recommended for Primary Collection (such as auto tipper, Tricycle and Push cart) and for secondary Storage (such as variable capacity metal containers) Recommendations on secondary transport using hydraulically operated systems for Class I cities (such as twin container and dumper Placer); and for non Class I cities (such as Single container and tractor Placer) Recommendations on treatment & disposal facilities for various types of towns - Class I cities to have both treatment and sanitary landfill sites in accordance with MSW Rules 2000 while other Non Class I towns to have only engineered landfill sites. 40 Overview and Challenges Fig. 5 : Institutional Context for MSW Management enable an integrated MSW system. strategy. In Hyderabad, the Bank has The common and simplest one is to been assisting the Corporation in assign or strengthen overall responsi- dealing with dump closure and future bility at the level of Additional Com- options, and a management team is missioner. For larger municipalities or being assembled. those where major system expansion Typically in smaller municipali- is planned, it is probably preferable to ties, the public health department is have a specific designated manager, responsible for collection, street with operational responsibility, who sweeping, transport and disposal of could be a Solid Waste Manager, or a solid wastes generated in the local Chief Engineer, Solid Waste. body's wards (see in Fig.6 for a typical Larger municipalities are moving organization chart outline for existing ahead on this issue. Bangalore has had MSW management system in Banga- a high level committee managing its lore). The head of Health Department expanded MSW efforts; Mumbai reporting to Municipal Commissioner Corporation appointed an external is generally head of the MSW manage- organization to help manage its ment system but there is often poor program for MSW; Delhi has com- coordination between the engineering pleted a major study of its options and department (which is responsible for 41 Improving Management of MSW in India transportation and disposal) and MSW management activities. Thus the health department. municipal systems need to manage a INFORMATION BASE FOR structured and credible information PLANNING base to facilitate physical as well as financial planning. Many municipalities have records PROFESSIONAL ASSOCIATIONS on how much waste is generated, collected and disposed. However, it is AND OTHER INSTITUTIONAL difficult to determine consistent RESOURCES figures across data from different One emerging trend is the grow- sources which can be based on popu- ing acceptance that municipal solid lation figures: number of bins; number waste is a legitimate and important of sanitary staff; number of collection area of municipal government and trucks; and volume reaching and that recognition needs to be given to accumulating on dumping site. this as a legitimate professional field. Further, the lack of a fund based Karnataka government has realized accounting system ( or Double Accrual this need and inducted technically Based Accounting practice) limits skilled professionals (environmental understanding of costs involved and engineers) to take on the MSW resources required in carrying out management responsibilities from Fig. 6 : Organization Chart for MSW Management System, Bangalore 42 Overview and Challenges Health Officers. A number of state governments (and the Union Government) see the The Bank with the involvement of identification and support of appro- WSP and WBI, is currently supporting priate regional approaches as an an Urban Managers program at ASCI important task. In Andhra Pradesh, which partially covers the MSW possible "catchment areas" for such agenda. Further, with the involvement facilities have been outlined, using the of WBI, the Bank is currently develop- larger municipalities as the anchor for ing a focused program on MSW such approaches. management capacity building for ULBs. In parallel, discussions are also IMPROVING COLLECTION AND underway with the CPCB and with SEGREGATION: ROLE OF different state governments on adapt- COMMUNITIES AND THE ing this approach so that appropriate INFORMAL SECTOR training and capacity building ver- MSW management systems are sions can be delivered in different very labor intensive, particularly in states. developing countries. Most munici- REGIONAL SOLUTIONS palities have significant numbers of A particularly complex and unskilled staff working as sweepers or sensitive institutional issue is the in waste collection but collection question of regional approaches for coverage and the quality of the MSW treatment and disposal facilities. operations is often low (especially in There are strong economies of scale in poor areas). As a result, in many areas most MSW treatment and disposal the collection is done through infor- systems. This fact, allied to the time mal or semi-formal mechanisms and complexity typically associated outside the municipal system. At the with planning and development same time, good control at the initial approvals for MSW facilities, argues stages of household collection and at- for the development of regional facilities as an effective approach for groups of smaller municipalities. This approach also opens a clear opportu- nity for private sector involvement in the finance and operation of such a regional facility. Transportation costs have to be offset against economies of scale and so solutions become site specific. However, given traditional municipal rivalries, it is unlikely that regional facilities will be developed without outside impetus. 43 Improving Management of MSW in India Box 6 : Institutional Capacity Building - Key to Successful MSW Management Given the increasing scale and complexity of upgraded MSW systems, there is a clear need to have clear, senior and unified management responsibility for MSW in any ULB. The institutional mechanisms within ULBs (especially smaller municipalities) need to be strengthened to achieve effective co-ordination between administrative, engineering and finance functionaries. A structured information system (covering physical and financial) on MSW management is essential at ULB level to facilitate strategic planning There is a clear need to build a legitimate MSW management profession attracting professionals who can under- stand the engineering and environmental issues and run the MSW management operations effectively. A structured learning and training mechanism is essential to enhance the ULB capacity to manage a number of issues and subjects related to MSW management. source segregation are critical to both tions are showing positive results and the efficiency of the system and to are pushing municipalities to improve opportunities for later recycling or their part of the system. These pilot processing. programs are often very successful in their own context and provide poten- There is limited data for compara- tial models for replication. Although tive figures and trends but the cover- there are a number of examples where age of municipally managed house- local community groups have been hold collection is probably less than 50 established (with considerable percent (reported figures tend to effort21), there are no good models of suggest higher but these are not how to scale up significantly to reliable). Middle-income and high- achieve a major increase in the number income neighbourhoods tend to take of community groups involved. A matters into their own hands, hiring recent study (2005) by Shristi, an their own neighbourhood pushcart NGO, on up-scaling public participa- waste collector and covering the tion in waste management noted a necessary costs. In many municipali- number of NGO led initiatives as well ties and corporations, neighborhoods as some led by city municipalities. The have formed committees or associa- same study notes: "even if we take the tion giving contracts to NGOs or two largest interventions, namely private sector or to individuals Muskan Jyoti Samiti at Lucknow and for house-to-house collec- Centre for Development Communica- tion of waste using tion at Jaipur, they deal with only 3.6 containerized tri- percent and 2.5 percent of the city cycles/handcarts, for waste, respectively. But they are which residents pay making a significant contribution to directly. A number of the form of providing employment to pilot programs waste collectors and providing door- implemented by the to-door collection service". The case NGOs and commu- "I warned you not to make promises. example from Visakhapatnam, one of Next time try a different approach!" nity based organiza- the pilot cities appears to be a sustain- 44 Overview and Challenges able model where primary collection is The scale of this informal driven through municipality and economy is not well understood but it citizens' partnership. is certainly large, for example, with one estimate that there are 75,000 Community initiatives depend waste pickers in Delhi.23 These waste strongly on the interest and activism pickers collect different recyclables of key players and therefore items such as plastic bags, metal cans, sustainability and replicability are a wires, paper and plastic items etc, and real challenge. The coverage of current sell it to local waste dealers, who in community based collection systems is turn sell it to recycling units. A not known accurately but is believed commonly accepted figure is that to be, at best, of the order of 15 percent waste pickers take away 10-15 percent of any urban area. Scaling up is of the waste (by weight). The pickers difficult because it depends on the are poorly paid and work in very bad local context, but committed and conditions24, although the middlemen energetic municipalities are achieving who control the system are typically some progress.22 One key condition quite well-off. The chart (Fig.7) seems to be an explicit recognition by outlines a typical network of munici- municipalities of the role of these pal solid waste recyclers' in India community systems and a willingness to adapt municipal systems to mesh Typical efforts to deal with the with community efforts. conditions of the waste pickers tend to address the problems of individuals or In terms of recycling, a key factor groups by providing protective is the high level of informal recycling equipment or better working facilities. that occurs at the household or pri- However, from discussions with local mary collection stage, which results in officials and with NGOs active on the removal from the waste stream of these issues, it is clear that the plight much of the recyclable material such of individuals or groups of pickers as paper, cardboard, plastics and needs to be considered in the context metals. Some of this work is done by of informal recycling the door-to-door collectors but the rag- as a substantial pickers or scavengers who hunt economic system. through roadside heaps or larger dumps in search of items of value. The A recent study by value of waste increases as it moves an NGO25 looked in up the chain. For example, plastic and detail at the operation PET bottles, which are bought at Rs 2 of the waste pickers in per kg at the small waste dealers level the central New Delhi are sold at a price which is 125-150 area, based on a percent higher, while some tin and survey of several metal items (such as cans, etc) see hundred waste about 80 percent increase in value as it pickers. The study reaches large waste dealers' level. documents a hierarchy 45 Improving Management of MSW in India of waste pickers, waste collectors purposes. Attempts to develop local (thiawallas), small kabaris (middlemen) recycling efforts, such as composting/ and big kabaris. The big kabaris sell vermiculture often fail because of lack recovered material onto the secondary of space and the informal recycling materials industry and therefore are sector (like any other logistics system) the link between the informal and needs depots ("godowns") at strategic formal sectors. The secondary materi- points in order to make the collection als industry is itself a significant part system efficient. However, space is at of India's industrial structure. The a premium and expensive in any study suggests that the numbers metropolitan area and urban dwellers employed in the informal sector are are resistant to having waste facilities from 40,000 people upward, which is as in the neighborhood. lower than other figures quoted but Taking the informal sector, the not totally inconsistent. The study also street sweepers and the collection staff suggests that the quantities of waste of municipalities, there are tens and generated are underestimated by the hundreds of thousands of people authorities and that the proportion employed in waste collection in Indian collected by the informal sector is cities. A review of the informal sector greater than the normally assumed and its links with community collec- figure of about 15 percent. tions systems, considered as an A key point made in this report economic system, has been discussed and by others working on these issues with NGOs and others working in this is the critical importance of allocating area. space locally for waste management Box 7 : ULB ­ Community Partnership for Primary Collection ­ Case Example from a Pilot City Primary Collection of Solid Waste in municipal wards is done through combination of conventional method of street level bins and house level collection. While municipal workers collect the street level waste in 75-80 percent of the area, about 20-25 percent of the areas are covered through household level collection. The latter is managed under a specific program called "Janachaitanyam"(public awareness). Under this self-help scheme, Municipality provides a rikshaw with four containers and a monthly cost of about Rs 600 to the Neighborhood Residents Associa- tion (NRA) of less than 200 families who in turn organize a workers (generally rag pickers) and pay about Rs 20 per family for collection of waste from households. Currently about 200 units are operating in the city. This program is further extended to other participatory community sanitation services like street sweeping, drain cleaning and solid waste collection under the program: "Subhram (cleanliness)". Both of these programmes are currently operating successfully. These programs have resulted in: Community ownership of primary collection through ULB-Citizens partnership. Substantial improvement is sanitary conditions. Organizing the rag pickers through NRAs. A successful model which is currently being replicated in other ULBs in Andhra Pradesh. 46 Overview and Challenges USING THE PRIVATE SECTOR MSW management chain. Particularly, MORE EFFECTIVELY cities such as Delhi, Chennai and Bangalore have undertaken PSP in Role of the Private Sector collection and transportation activities Engaging the private sector for of MSW. While most ULBs have used providing services is common in service contracts for MSW collection sectors such as MSW. In India, there is and transportation, Delhi and Chennai already widespread use of contractors Corporations have also entered into (both labor and equipment) but Concession Contracts. These contracts usually on a simple contract basis and encompass a larger proportion of area not for broader delivery of specific in the cities. Street sweeping contracts MSW services. A background study involving private sector participation (2005) on various MSW management have generally been executed as contracting practices in India (com- service contracts. Hyderabad and missioned as part of this analytical Mumbai have experimented with fixed work) notes that increasing number of rate contracts with rate fixation being ULBs in India see private sector done by the Corporation and the participation as a panacea and have contractors selected on the basis of a experimented at different levels in the lottery system. Experience of PSP in Fig. 7 : Typical Solid Waste Recycling Network Source : Background Report 47 Improving Management of MSW in India treatment and disposal in India is MSW from different waste generators very limited so far. Municipalities (primarily households, commercial such as Bangalore, Delhi and establishments, hotels and restaurants Thiruvananthapuram have initiated etc.) but the area of operation has been activities for the development of limited to a few localities. The use of engineered sanitary landfills with contractors for labor-intensive work is private sector collaboration. regulated by employment legislation and so flexibility is limited under Potential benefits of increased current approaches. On the other private sector participation (PSP) in hand, it is very difficult to change MSW have been summarized as working conditions for municipal follows:26 employees and so flexibility is also Private sector stake in the project limited in this area. On the transport guarantees their commitment to side, there are different approaches economic efficiency while serving taken to contracting haulage firms and the public interest. there are different claims as to the cost reductions and efficiencies.28 Improving efficiency and lowering costs by introducing commercial There is a reasonable assumption principles (focused performance that the private sector can provide objectives; financial and manage- most of the MSW services at lower rial autonomy; hard budget costs than currently borne by many constraint; clear accountability). ULBs using their own equipment and staff. However, this assumption is not Equitable risk allocation with always true and some municipalities reduced level of risk for Govern- are reportedly carrying out functions ment and taxpayers for a rate of at a lower costs than comparable PSP return to the private investor. in other cities. At the same time, there Access to latest technology and are clear inefficiencies and wastage in enhanced efficiency. some ULBs and there are definite opportunities for reducing the overall Better customer focus and deliv- cost of service within the existing ery. structures, if the will to do so exists. Access to broader funding Experience worldwide shows that sources. strong management in a competitive There are several different pos- environment can bring down costs, sible levels of involvement of the even where the system is owned and private sector and contractual ap- operated by the public sector. In proaches to PSP27. In India, there is practice, a mix of public and private growing experience with contracting provision is often a good solution. the private sector for some MSW Apart from contracting for collec- activities. A number of cities have tion and transport, contracting out entered into service contracts with treatment facilities is likely to become private operators for collection of 48 Overview and Challenges more widely adopted. There is strong Inappropriate division of roles interest in India in PSP options for and responsibilities. treatment and disposal facilities and a Inadequate risk mitigation mea- number of examples are underway or sures. under discussion29. The approach most commonly suggested in India Lack of credible information. puts the complete responsibility on the Unsustainable operations of the private sector to build, own and facilities owing to high capital and operate the required facilities (the O&M expenses. approach known in its variations as BOO, BOT, BOOT etc). This has Poor monitoring and supervision apparent advantages in terms of by the ULBs leading to inefficien- simplicity, from the point of view of cies. the municipality, but it remains to be Lack of political will to ensure seen if it can be made effective and sustainable MSW management efficient. There is considerable private operations. sector interest in such contracts but limited real experience, although some World Bank experience in other cities are considering entering into countries suggests that there has been concession agreements / management reluctance on the part of the private contracts with the private operators sector to accept all the financial risks for operation and maintenance of associated with a treatment/disposal treatment and disposal facilities on a facility and that a more acceptable Build-Operate-Transfer (BOT) basis. approach is the Design-Build-Operate (DBO) route where the municipality Initial efforts by private operators carries or at least shares the financial under the small number of current risks.31 Whatever system is preferred, contracts have typically not been the key principles in contracting the "The sweepers are getting satisfactory. Some of the primary private sector for this type of service agitated, Sir. Do we have issues of concern include30: anything in the manual about dealing with the situation?" Inability of the ULBs to provide the guaranteed quantum of waste to the private operator. Delay in decision making often resulting in huge opportunity costs and loss of private sector participation. Poor operation and maintenance of the facilities by the operators. Anticipation of "royalty" for supplying MSW by many ULBs. 49 Improving Management of MSW in India provision are competition, transpar- contract types, as depicted in Table 8. ency, and accountability. The review assessed available Managing the Contracting Process contractual documents for collection/ A key factor in the poor perfor- transportation and treatment and mance to date has been that few disposal, focusing on allocation of risk, municipalities appreciate the impor- using the framework given in table 9. tance of developing their own internal Several existing contracts cur- management and financial capacity to rently under implementation in design and supervise properly these various Indian States were reviewed new contracts. There is clearly excel- under the study. Without naming any lent legal advice and basic contractual particular contract for the reasons of experience available through compa- confidentiality, Table 10 outlines a nies and individuals in India but there general analysis of key risks left is very little significant implementa- uncovered under the agreements. tion experience on the types of con- tracts now being used. Municipalities The review noted that real experi- must do their own careful risk assess- ence with PSP has been mixed, due to ment of contractual approaches and lack of adequate project development develop plans for dealing with the ­ with projects often being operator practical and contractual problems led rather than ULB driven ­ and which will inevitably arise. weakness in the underlying informa- tion and expectations. Some of the key Under this activity, a review has characteristics observed from current been commissioned of the contracts let contracts are summarized in Box 8. to date on MSW, with the aim of extracting good practice lessons. The The review concluded that there reviews32 note key characteristics of are already various contractual the MSW sector, including preferred structures for PSP in India, which have Table 8 : Key Characteristics of Contracts in MSW sector Activity Characteristics Preferred contract types · Large number of employees including informal Service contracts Collection and Transportation · Logistics intensive Management contracts and · Citizen interface Concession · Investment ranges widely depending on scope · Labour oriented Service contracts Street sweeping · Minimal investment · No requisite skill set/ technical skills · Logistics intensive · Technology intensive Concession contracts Transport · More capital intensive · Ongoing O&M · Capital intensive Concession contracts Disposal · Technically skilled manpower required · Ongoing O&M 50 Overview and Challenges differing risk and responsibility is considerable international expertise allocations. The main types are service in operating MSW systems and at contracts, management contracts and least one current example in India33 concessions contracts. A thoughtful but the scale of the typical scheme and assessment of the appropriate type of the uncertainties about contractual contract needs to be made in each case, approaches mean that, in the short depending on the scope and objectives term at least, international involve- of the work to be done. The essential ment is limited and PSP is likely to be requirement for encouraging an led by Indian companies. A report equitable partnership in any case is looked at the strategies and priorities careful preparation, including framing of the major international players in of the objectives and the project MSW service provision and concluded structuring options, so that a clear, that this market is unlikely to attract comprehensive and balanced contract- much international interest until it ing process can be implemented. There matures and risks for international Table 9 : Risk in Contract Documents for Collection / Transportation and Treatment and Disposal Nature of Risk Brief Description Design risk The risk of designs being adequate/ deficient. Sponsor Ability of sponsor to invest and provide desired services Quantity Variation This may be broken down into the following sub-heads: · Underestimation of quantities · Change of scope · Unforeseen ground/ environment conditions Revenue · Adequacy of consideration for stakeholders Environment/ social · Conformance to provisions of applicable law Time Overruns · Delay in Land Acquisition · Delay in approvals · Contractor's delays Force Majeure · Non-political Events* · Political Events** · Other Events*** Quality risk Risk that quality of construction would be lower than expected, leading to: · Higher costs of maintenance. · Non-availability of service Failure of the Contractor Risk that the Contractor would fail, and a replacement would lead to cost and time overruns. Termination Risk arising from termination of the Agreement and could result in time and cost overruns. Variations Risk that would arise due to any variation in the scope of work on the Contractor Defects Liability Risk arising from any defects or damage appearing in any part of the Works Dispute Resolution Risk arising from any dispute, difference or controversy between the parties * Natural force majeure events, terrorism, strikes, boycotts, etc. **Change in law, expropriation, other governmental action having material adverse effect. *** War, ionising radiation, volcanic eruption, rebellion, riots, etc. 51 Improving Management of MSW in India investors are reduced.34 vehicles that have been developed in consultation between state govern- Local Equipment Market ments and equipment manufacturers. A less frequently discussed but Given the scale of the MSW sector, very important aspect of private sector there will be many business opportu- involvement in MSW is the opportuni- nities and one of the issues raised in ties present for the local equipment discussions with CPCB and IFC is how market. There are already a number of this market can be encouraged. There prototype small- scale collection Table 10 : Key Risks Not Covered in Contracts No. Risk Key Observation 1. Completion Risk Many agreements do not set out any timelines or penalties to address the risk. The security deposit is used in many cases as a mitigant for this risk thus failure of agreement could lead to forfeiture of the security deposit. In some cases performance penalties are set but no penalties are set related to delays in approval by ULBs or to ensure timely or speedy execution of the treatment and disposal projects. 2. Operating Risk The risk of management of the project facilities and the quality is generally allocated to the Contractor. There are however, no penalties or monitoring systems set in place. In some cases independent agencies are involved in review or monitoring. In many agreements the specifications for equipment etc are not set out and left to the discretion of the Bidder. In some, technology is provided by another party while the responsibility of operation is passed on to the bidder. In some cases the ULBs do not retain their right to review the adequacy of design of plant and machinery but generally they retain say in performance monitoring. 3. Revenue Risk In some cases no demand estimation and geographical distribution of work is often inadequate but concessionaire is suitably protected fromthis risk as payments are made by letters of credit within a given timeframe. Many ULBs have used tipping based model but in several cases no payment guarantees or risk mitigants are set out for revenue risk. Some municipalities have resorted to taking royalty payment from private operators without an assessment of revenue risks in case of reduced sale of either compost or power. 4. Force Majeure* Risk Most contracts do not adequately set out the risk allocation for Force Majeure events. 5. Environmental & Many contracts do not explicitly address environment and social risks as Social Risk these are left to the discretion of private operators. 6. Political Risk Most contracts do not identify or address political risks. * unforeseeable circumstances 52 Overview and Challenges will be some need for importation of known as compost, it is more properly specialized equipment but given local described as a soil conditioner since it ingenuity and engineering expertise does not have high nutrient levels. much of the market demand can be Therefore, for commercial sale it is filled by local equipment. often reinforced with some form of TECHNOLOGICAL QUESTIONS fertilizer (such as chicken meal). This compost/soil conditioner does have a A number of important techno- market but it is not seen as a high logical questions have been raised in value product. At the same time, the course of this work. The focus is chemical fertilizers are strongly not on technology but there are some supported and subsidized and conse- issues on which comments are war- quently the opportunities for breaking ranted. into the commercial market is limited. Composting An allied concern of the agricultural Composting is a long established authorities is that heavy use of chemi- approach. Technically, it has been cal fertilizer can be associated with demonstrated that compost can be declining soil productivity as the soil manufactured from MSW at a rela- structure changes, a trend which tively large scale (hundreds of tons per could be combated by more use of day) but numerous efforts to commer- compost as a conditioner. Conse- cialize composting have failed ­ not quently, MoUD in co-ordination with just in India, but across the world ­ Ministry of Agriculture, is planning to because of a lack of suitable markets at promote a compost market by requir- acceptable prices. ing fertilizer companies to sell a mixed product to their customers, in a 7:3 Although the material is generally ratio (fertilizer to compost). There are Box 8 : Characteristics of Current MSW Management Contracting Collection and Transportation There exists a disparity between contract payments and actual performance of the Parties No clear monitoring mechanism to assess the performance Issues with regard to environmental and social risks have not been addressed Treatment and Disposal Commercial terms are not equitable Revenues risks are high due to unviable model of royalty payments by the private investor Timelines and penalties for default are not comprehensively addressed Termination risks are not equitably shared No clear monitoring mechanism set out in the contracts and payments are not linked to service performance Issues regarding to environmental and social risks have not been addressed adequately 53 Improving Management of MSW in India also proposed directives to improve compost market, but there is very little the viability of compost plants, which experience yet in such schemes. include: (i) 50 percent subsidy on In summary, composting does capital for proposed compost plants meet requirements of the MSW Rules on Public- Private Partnership; (ii) free for "inertization"; it can qualify for leasehold land provision by ULBs (iii) carbon finance, and it will generate no royalty on waste; (iv) exemption of some revenue as a compost market local taxes; (v) transport subsidy develops. amount of Rs 150 per ton of compost. The final package of measures to Waste to Energy support compost are not decided and Mass burn incineration does not there are a number of practical issues appear to be a realistic option in India that will have to be addressed, but for technical, operational and financial there is a clear recognition of the reasons. The alternative of Waste to potential value of compost use and Energy (WTE) plants using Refuse actions are being taken by the govern- Derived Fuel (RDF) has been demon- ment. strated to be technically possible. At At present, there is interest in the the time of writing this report, there is Indian private sector in contracting one operating WTE plant in with municipalities to take MSW and Hyderabad which produces approxi- make compost, on the basis of a mately 6MW (a standard generator "tipping fee" to be paid by the munici- size) and nominally consumes about pality, with the company selling the 700t/d of mixed municipal waste. A compost "commercially". Some states, second plant (an evolution of this such as Tamil Nadu, are looking at design) has started operating in different approaches to support the Vijayawara. There are also proposals expected emergence of a sustainable for larger plants for Hyderabad and for Delhi. All of these operate on "fluff" ­ a form of RDF based on waste that has been sorted, dried and pulverized. The current plants are not operat- ing in a manner where the actual volumes of waste used (and the volumes rejected) can be measured. In each case, they are situated in a dumpsite surrounded by waste. A concern is that if and when a WTE plant shuts down, the municipality will be left with a large dump which is going to cost money to clean up. "I should pay more because I generate more waste? What about Evaluation of the economics of such my contribution to employment, waste-to-energy projects, etc.?" 54 Overview and Challenges plants must consider all the life cycle staged or "differentiated" approaches, costs. based on environmental protection as the priority and with careful assessment of An alternative form of WTE is that of individual sites35. Selection of a good site bio-methanation plants, which relies on is fundamental; if this can be achieved gas produced from slurry of organic then the specifics of the landfill design waste. There are at least two such plants are less critical in achieving the desired operating in India. A large one in environmental performance. Systems Lucknow which has a number of opera- have been identified in other countries tional problems to date and a smaller one which allow "differentiated" require- in Vijayawada. At the appropriate scale ments and which could serve as models36 and with a good waste stream, this for India. The possibility has been approach clearly has potential but the discussed of developing a small number economics are again not completely of well instrumented and monitored clear. landfills to test different technical ap- The details of any contract needs to proaches. This idea should be imple- be carefully considered, especially in mented. relation to the volumes of waste accepted As part of work carried out in and the disposal of waste not used or left Andhra Pradesh, a simple matrix was after RDF preparation. In this context, it developed to identify key components of makes sense for the RDF plant to be on a good landfill design and construction major municipal landfill site but it must and to show how these could be intro- also be monitored separately or other- duced progressively, starting from a wise the municipality may end up simple basic system and developing into paying for all the waste handling, a full modern sanitary landfill. without realizing it. It is essential to design and apply a proper competitive bidding process with a well designed "There goes the second draft of contract. Unsolicited bids are rarely a my novel! My wife calls it waste- segregation-at-source." good deal for a city. Landfill Issues The MSW Rules set out requirements for landfills which are consistent with best international technology for land- fills. However, the high technical stan- dards also mean relatively high cost systems and there is no flexibility in the current Rules to consider alternative approaches for different circumstances. The Bank accepts that development of landfills often has to be carried out in stages and is generally supportive of 55 Improving Management of MSW in India Operational Skills ration of Hyderabad (MCH) on aspects Although the basic skills to operate of closure of one major dump at an MSW landfill are relatively simple, Autonagar on the outskirts of the city. there is very little experience in India (in The decision has been taken to close public or private sector) on how to this dump, as a matter of urgency. operate an overall landfill system effec- However, analysis of alternatives sys- tively and efficiently. In the same context tems has not yet been completed and the that the design and construction of a resources to deal with Autonagar are number of model landfills is generally limited. The overall objective is to help accepted as a very sensible approach, the MCH to develop a financially and use of such sites for formal training of environmentally sustainable Integrated operators ­ particularly supervisors and MSW Management system. In relation managers ­ is strongly recommended. specifically to the existing dump, the Dump Closure/Upgrading objectives are to clean up the dumpsite as efficiently as possible, and in doing so to The public and political pressure for maximize the potential value of the asset action on MSW treatment and disposal is to MCH. These possibilities and the typically driven by the nuisance caused potential for seeking carbon revenue are by large dumps, particularly where being addressed, in order to identify urbanization is now approaching sites potential financial revenues. which once were relatively remote. These large dumps, some of which are still in A "Road Map" was developed and operation, cover tens of acres, contain provided as a working document to millions of tons of waste which has been MCH, setting out the steps necessary in dumped over several decades, and are developing an Action Plan for upgrading often burning, at least in sections. In the treatment and disposal of MSW, close cooperation with USAEP (US Asia including: Environment Partnership), the Bank "The compost is not selling and Identify and implement actions to provided advice to the Municipal Corpo- the children love playing here. close the existing dump. Might as well make it a park and charge a small user's fee." Evaluate potential landfill site(s), needed as a core element of the long- term system, starting with sites that have already been identified for this purpose. Identify and assess those treatment options that have the highest poten- tial to contribute to the overall long term solution. On the basis of the previous steps, identify and develop a small number of the most attractive treatment and 56 Overview and Challenges disposal alternatives, taking into laid down under the MSW Rules 2000. account transportation factors. The need of land is estimated at 15 acres per 100,000 populations for the purpose Compare and evaluate this set of of landfilling for 25 years. This require- options, taking into account both ment is huge and can be minimized technical and financial parameters only if city governments go deep and go and on broader acceptability and well above the ground like the western implementation factors. world using high skills in landfill Landfill Siting and Approvals operation. The not-in-my-backyard Siting is a difficult issue in major (NIMBY) syndrome and vested interest metros (such as Delhi and Hyderabad) play a vital role in municipal authorities where efforts have been underway for not getting adequate land for disposal several years with limited progress. of waste. The state governments are also However, for smaller municipalities, very slow in allotment of land to the experience (such as that in Karnataka) local bodies for this purpose at a nomi- has shown that acceptable sites can be nal cost. identified and obtained. In such cases, Landfill investments supported by it is usually possible to identify a few the Bank through municipal projects potential sites within a reasonable would normally require a "limited " distance of the core urban area and, (e.g. Category B) Environmental Assess- with a careful and consultative selec- ment38. An outline of the requirements tion process37, acceptable sites can be for such an EA has been drafted. As found. long as there has been a careful and Selection of a good site is critical to inclusive site selection process, it reducing the potential environmental appears that such requirements are impact of a landfill and also to increas- not onerous and can be accepted by ing the prospect of public acceptance. clients.39 However, Indian law does not require an Environmental Impact Assessment for a landfill clearance from the local SPCB is required but the procedures and criteria are not well established). Early drafts of the MSW Rules did require some level of EIA and al- though this requirement is not in the current Rules, the issue is again under discussion. The major problems the urban local bodies facing in the country in regard to landfills is the non-availabil- ity of large area of land at a suitable location which meets the parameters 57 Improving Management of MSW in India MOVING FORWARD 4 The current work is coming to The growing pattern in India, completion, having successfully which is consistent with international supported a number of approaches practice, is for an increasing level of and initiatives which are part of a private sector participation in different broader effort by governments and aspects of MSW service provision. their partners at all levels in India to Outside of relatively straightforward upgrade management of MSW. transport or labor contracting, there is However, the long term work of still limited experience with contract- upgrading systems to provide im- ing MSW functions to the private proved and sustainable MSW services sector but this situation is beginning to the hundreds of millions of urban to change and considerable learning dwellers is really only beginning. (sometimes painful) can be expected CURRENT CONTEXT over the next few years. It is clear that MSW management Both the national government and is, and will continue to be, a large and state governments are very supportive important task for municipal govern- of efforts to accelerate the upgrading ments, at all levels. Different munici- of MSW. However, this is fundamen- palities will move at varying pace on tally a municipal function and it is at these issues but momentum has been this level that the challenges have to developed nationally and the overall be addressed directly. There has been process will not be turned back. MSW considerable improvement in the management requires both increas- levels of service and there are many ingly sophisticated system manage- examples of local governments ment and on-going ­ although rela- beginning to find the solutions that tively small ­ capital investment. As a are appropriate to their own condi- technical function it falls between a tions. However, given the scale of the major infrastructure scheme (water challenge, the road ahead is a long supply, for example) and a manufac- one. turing system. National level expan- KEY AREAS sion and improvement of coverage In this context of the increasing will therefore require both institu- awareness and growing efforts being tional (including financial) upgrading put into managing MSW, a number of and also considerable infrastructure key areas have been identified which investment. 58 Overview and Challenges should be addressed as priorities in targeted training programs for munici- moving forward. pal officers. Strengthening ULB capacity ULB Staff Capacity Upgrading MSW will only occur While some ULBs have the staff with continuing strengthening of the positions and skills to take on the financial and management capacity of challenge of upgrading MSW, there most ULBs. This process will take time are weaknesses in others. Given the but should start with an emphasis on importance of MSW in the operations ongoing assistance in the overall and finances of ULBs, efforts must be process of financial system upgrading put in place to upgrade staff capabili- (a key objective of the Bank's munici- ties. While the resources could be pal reform efforts) to include a reliable mobilized for this purpose, a quick accounting system for MSW. It is also process to institutionalize this efforts important to strengthen MSW man- should be put in place. The commit- agement by the clear allocation of ment of ULBs to upgrade the capacity responsibility (and appropriate of staff would be a key criterion for the authority) to a senior officer in the initiating his effort. The Bank with the ULB for all MSW functions. involvement of WBI is initiating a capacity building program considering MSW Management Core Group the felt need. Completing these changes will take some time but significant Developing Practical Experience progress can (and should) be made Much of MSW management quickly. At the same time, efforts need requires hands-on experience, which is to be put into mechanisms for provid- currently lacking. At the State level, a ing support to the ULBs as they go small number of ULBs, which put through the process of upgrading their themselves forward for the purpose, systems. This is clearly a state function may be selected as pilot or demonstra- and it is probably essential to establish tion cases where additional resources small state level MSW management and support would be provided in program groups which will have order to rapidly build experience and mandate to develop a program of expertise, which can then be shared upgrading, through working with with other ULBs. individual ULBs and other key parties. Improving ULBs' Financial The program would set out criteria for Situation and Management of support, performance monitoring Resources requirements and incentives for ULBs Serious and sustained progress in to participate in upgrading their MSW addressing MSW can only come with services. The group should be pro- improvements in the financial re- vided with technical and human sources and financial management in resources to work with individual the typical ULB, given the large share ULBs and increasing the availability of 59 Improving Management of MSW in India of MSW expenditures in any ULB's Realistic Plans for Upgrading finances. Such improvements will take Upgrading will take time and will time and will be achieved through a require that new resources are found. number of different efforts. These It is important that realistic implemen- include: tation plans be developed and Adopting better accounting and adopted by each ULB, with support financial management systems, from State governments (or other which will allow the municipality sources), as necessary. The structure to manage better its financial and content of any plan document is resources and also to increase its much less important than the need for collection of revenues. involvement of all relevant parties in the adoption of agreed steps forward Increase efficiency in the operation in improving the system. of its current MSW activities, and Organizing Communities for use resultant saving of financial Segregation and Collection of and human resources to expand Waste the system to meet the new requirements. It is clear that there are several good models for community level Providing more integrated man- segregation and collection of MSW. agement of all aspects of the MSW Most municipal governments recog- system, allowing available man- nize this and are supportive of in- power, equipment and other creasing the coverage of such groups. resources to be put to best use in However, since community based the expanded system. organizations or NGOs are inherently User Fee for the Service "bottom-up" groups, it has proved difficult to replicate or scale up A good approximation of the significantly the existing good ex- value that people place on MSW amples. A number of authorities41 are management is the amount that they embarking on Information, Education are prepared to pay for this. On the and Communication (IEC) programs basis of simple assumptions, the MSW to encourage the formation of more management cost per household is local groups. Increasing the coverage about Rs 50/month. This cost is of such community groups is impor- affordable by majority of the popula- tant since it would be very difficult for tion (except slum-areas) and part of municipalities to expand their own these costs is already paid by many collection efforts at this level, given households in case of community constraints on size of workforce and collection systems. Also there are the costs involved. successful examples in collecting the user fee40. In view of this, efforts Incorporating Informal Sector should be towards a systemic shift to MSW is a labor-intensive opera- "Paying for the Service" approach. tion, involving significant numbers of 60 Overview and Challenges poor people in informal activities and Performance Monitoring/ a large unskilled workforce. The role Benchmarking of these people must be taken into There are no established or account in upgrading MSW, aiming to broadly accepted parameters for improve the overall efficiency of the monitoring the performance of MSW system while providing reasonable systems, although there are various opportunities for the people affected. norms for the design of collection and In the long term, the objective should street sweeping systems. Efforts be to incorporate the informal sector should be made to begin to collect into a more structured and organized performance data on parameters such collection and recycling system. For as unit costs, efficiency of different the ULB workforce, the aim should be systems, typical costs and prices etc, in to upgrade the skills and effectiveness order to provide a baseline for new of the workforce to help deal with the systems. growing workload that will come with Regional Approaches improved management and increased coverage. International experience shows that economies of scale, scarcity of Working with the Private Sector facilities and other factors often It is clear that there will be a high suggest that regional solutions may level of private sector involvement in have advantages over a proliferation providing MSW services in India. This of small schemes, around metropolitan will build on existing involvement in areas, for example. However, in India, the areas of collection and transport as elsewhere the first approach is but will require significant new usually for each municipality to seek initiatives in treatment and disposal. its own solution, typically for reasons There is so little experience in this field of control and political independence. that there will inevitably be a period of With some exceptions42, little attention trial and error. It would be of signifi- has been given to possible regional cant value in establishing structures to solutions. These should be included, at review both the technical and opera- least as medium term approaches, in tional aspects of the emerging ap- any planning process. proaches. In any case, very careful Role of State and Central attention needs to be paid to the Governments contractual mechanisms used. This should emphasize understanding the Although MSW is fundamentally a technical and commercial risks in- municipal responsibility, state govern- volved in any proposal and then ments will have an important role to clearly and openly define the alloca- play over the next several years, both tion of these risks between the parties in helping to deal with the financial involved. needs and also in providing assistance with organizational and technical 61 Improving Management of MSW in India issues at the level of ULBs. At present, this opportunity to increase to the governments are just beginning to MSW revenue stream (typically with accept and prepare for these responsi- specialist consultant assistance) but bilities. the transaction costs are quite high at the moment and the benefits would The central government has set the not justify these transaction costs for basic framework and is currently in smaller ULBs. The Bank with the the process of reviewing the limited involvement of the Carbon Finance experience of the initial years of trying Business (CFB) unit is currently to implement the MSW Rules. It will working with Karnataka, Tamil Nadu be very helpful if the Government can and Andhra Pradesh on a "Bundling provide guidance and support to a Approach" for CF. Intended to bundle new and perhaps more realistic the potential carbon credits from implementation program different municipal investments in Impact of Dumps and Priority MSW composting into one project Remediation scheme per State, it reduces the costs. Little attention has been given to The opportunities look attractive but the issue of cleaning up existing there is very little practical experience dumps (with the exception of a couple so far. of cases in major metros). Although Building the Networks required the first priority should be to identify The critical issues are organiza- improvements or alternatives to tional and financial. The basic steps existing dumpsites, this issue should are known and understood but not be forgotten and planning efforts adapting them to the specific circum- should include at least a first order stances of each state and city is a long review of the state of existing dumps and difficult task. This cannot be done used by any ULB. This review should centrally and there is an essential need identify those worst cases which are to support the emergence of networks causing immediate or long term and systems which will allow indi- damage to nearby communities or to vidual ULBs to share experiences and the environment (water systems). to learn from each other. The objective Carbon Finance Opportunities would be to promote the exchange of Methodology for methane reduc- ideas and emerging findings, drawing tion through MSW composting from the experience of the municipal mechanism has been approved for authorities themselves and others who Carbon Finance (CF). The bigger are testing approaches on the ground. municipalities are looking to avail of 62 Overview and Challenges ANNEX ­ 1 SUMMARY OF MUNICIPAL SOLID WASTES (MANAGEMENT AND HANDLING) RULES, 25TH SEPTEMBER, 2000 The MSW (M&H) Rules are notified by the Minis- of Municipal Solid Wastes" and "Roles and Respon- try of Environment and Forests (MOEF) under the sibilities of Different Agencies" involved in imple- powers conferred by section 3, 6 and 25 of the Envi- menting the rules. The detailed notification as ronment (Protection) Act, 1986 (29 of 1986). The published by the MoEF can be referred at http:// summary of rules is presented below focusing on the www.envfor.nic.in/legis/hsm/mswmhr.html. expected "Implementation Schedule", "Management Schedule I: Summary of Implementation Schedule Serial No. Compliance Criteria Schedule 1. Setting up of waste processing and disposal facilities By 31.12.2003 or earlier 2. Monitoring the performance of waste processing and disposal facilities Once in six months 3. Improvement of existing landfill sites as per provisions of these rules By 31.12.2001 or earlier 4. Identification of landfill sites for future use and making site (s) ready for operation By 31.12.2002 or earlier Schedule II: Summary of Management of Municipal Solid Wastes S.No. Parameters Compliance criteria 1. Collection of municipal 1. Littering of municipal solid waste shall be prohibited in cities, towns and solid wastes in urban areas notified by the State Governments. To prohibit littering and facilitate compliance, the summary of steps to be followed include:- i. Organising house-to-house collection of municipal solid wastes; ii. Devising collection of waste from all categories of waste generators; iii. Make use of biodegradable waste; iv. Bio-medical and industrial wastes shall not be mixed with MSW; v. Proper management of waste collected including transportation; vi. Shall collect horticultural and construction or demolition wastes separately and dairy waste regulated as per state regulations; vii. No burning of any type of waste viii. Stray animals shall not be allowed to move around waste storage facilities or at any other place in the city or town and shall be managed in accordance with the State laws. 2. The municipal authority shall notify waste collection schedule and method to be adopted for public benefit. 3. It shall be the responsibility of generator of wastes to avoid littering and sure delivery of wastes in accordance with the collection and segregation system to be notified by the municipal authority as per para 1(2) of this Schedule. 2. Segregation of municipal ULBs shall organize awareness programs for segregation of wastes solid wastes and shall promote recycling or reuse of segregated materials. The ULB shall undertake phased program to ensure community participation in waste segregation. For this purpose, regular meetings shall be arranged by the ULB with citizens and NGOs. Contd. 63 Improving Management of MSW in India Schedule ll contd. S.No. Parameters Compliance Criteria 3. Storage of municipal ULBs shall establish and maintain storage facilities in such a manner as solid wastes they do not create unhygienic and insanitary conditions around it. Summary of criteria to be followed for establishing Storage Facility includes: i. Quantities of waste generation in a given area and the population densities. A storage facility shall be so placed that it is accessible to users; ii. Storage facilities shall not be exposed to open atmosphere and shall be aesthetic and user-friendly; iii. Storage facilities or `bins' shall have `easy to operate' design for handling, transfer and transportation of waste. Bins shall be painted green, white and black respectively for biodegradable, recyclable and other wastes; iv. Manual handling of waste shall be prohibited. If unavoidable due to constraints, manual handling shall be carried out under proper precaution with due care for safety of workers. 4. Transportation of municipal Vehicles used for transportation of wastes shall be covered. Waste should solid wastes not be visible to public, nor exposed to open environment preventing their scattering. The following criteria shall be met:- i. The storage facilities set up by municipal authorities shall be daily attended for clearing of wastes. The bins or containers wherever placed shall be cleaned before they start overflowing; ii. Vehicles shall be designed to facilitate multiple handling of wastes, prior to disposal. 5. Processing of municipal Municipal authorities shall adopt suitable technology or combination of solid wastes such technologies to make use of wastes so as to minimize burden on landfill. Following criteria shall be adopted: i The biodegradable wastes shall be processed by composting, vermin- composting, anaerobic digestion or any other appropriate biological processing for stabilization of wastes. It shall be ensured that compost or any other end product shall comply with standards as specified in Schedule-IV (refer http://www.envfor.nic.in/legis/hsm/mswmhr.html for details); ii. Mixed waste containing recoverable resources shall follow the route of recycling. Incineration with or without energy recovery including pelletization can also be used for processing wastes in specific cases. Municipal authority or the operator of a facility wishing to use other state- of-the-art technologies shall approach the CPCB to get the standards laid down before applying for grant of authorization. 6. Disposal of municipal Land filling shall be restricted to non-biodegradable, inert waste and other solid wastes waste that are not suitable either for recycling or for biological processing. Land filling shall also be carried out for residues of waste processing facilities as well as pre-processing rejects from waste processing facilities. Land filling of mixed waste shall be avoided unless the same is found unsuitable for waste processing. Under unavoidable circumstances or till installation of alternate facilities, land-filling shall be done following proper norms. Landfill sites shall meet the specifications as given in Schedule ­III (refer http://www.envfor.nic.in/legis/hsm/mswmhr.html for details). 64 Overview and Challenges SCHEDULE III: SPECIFICATIONS FOR SCHEDULE IV: STANDARDS FOR COMPOSTING , LANDFILL SITES TREATED LEACHATES AND NCINERATION AND I Schedule III as per the notifications covers the OPERATING AND POST CLOSURE STANDARDS specifications for Landfill sites covering: Site Forms: The Notification provides standard formats selection criteria, facilities to be provided at the site, for different applications including: Application for specifications for land filling, provisions for pollu- obtaining Authorization from pollution control boards, tion prevention, water and air quality monitoring Annual report submission by Municipalities, formats for requirements, plantations to be maintained at the issue of authorization by state pollution control boards, landfill site, closure of landfill sites and post-closure format for annual review to be submitted by SPCBs to care and special provisions for hilly areas. CPCB and Accident reporting formats. Summary of Institutional Responsibilities for Implementation of MSW (M&H) Rules - 2000 65 Improving Management of MSW in India ANNEX - 2 CASE STUDY OPTION - BASED FINANCIAL PLANNING : RESULTS FOR A TYPICAL PILOT CITY APPROACH summarised below and in the accom- panying table. For the pilot cities, the capital requirements (by year) have been A CASE STUDY OF A MID-SIZED estimated for MSWM under the broad TOWN headings of: primary collection and Several options including cost and sweeping; secondary collection and revenue projections were studied transport; and processing and dis- under the action planning process for posal. It is evident that most ULBs the Pilot City, and the summary of would require a combination of results can be presented in the follow- external grant and loans to develop ing manner. and implement an upgraded inte- grated solid waste system. However, Option 1 (Partial privatization): municipalities should be able to This option is expected to be a most operate and maintain the system if likely scenario for the city in view of they could keep a separate solid waste Government's policies, as it envisaged account and can identify and intro- that 70 percent of the primary collec- duce an assured stream of revenue to tion would be undertaken by the maintain and replace the assets. Most private sector/NGOs and the user fees ULBs would require an appropriate would make this operation self- combination of municipal staff and sustainable. The balance of primary private sector in primary collection in collection in the 30 percent of the order to cope with requirements to municipal area which is mainly service new areas and the approach comprised of slums would be under- would have to be based on some user taken by the ULB. The municipality fee model to make this operation self- has adequate staff, so sweeping and sustainable. sanitation services could remain the domain of ULB. The bins for second- The range of practical options ary storage and vehicles for transpor- examined on the ground are demon- tation of MSW, would be procured by strated from the example of one mid- the ULB and operated by the private size city. After considerable work with sector contractors who would be paid the effective and knowledgeable staff on a contractual basis, based on and rounds of discussions with senior number of trips made. The MSW officers and elected officials, a range of processing is proposed to be carried practical options were identified, as out by a private party on BOT basis. 66 Overview and Challenges Then landfill disposal would also be would lead to a saving of Rs 5.8 undertaken on BOT basis and a gate million in the operational costs. fee would be payable by the ULB @Rs The cost of primary collection in 500 per ton. The sweeping and sanita- this option (Rs 14.8 million) would be tion is expected to remain a responsi- 3 times higher that the option 1 (Rs 4.6 bility of the ULB as in the Pilot City million). adequate municipal staff is available. Option 3 (Partial privatization): Option 2 (Partial privatization): This option is a combination of The option 2 is similar to option 1 options 1 & 2 and under this option except for the provision that the the investment for the landfill site primary collection in this case would would be made by the ULB and it be done entirely by the ULB and the would be operated by a private party. sanitary landfill development and The projected scenario for other operational costs would be incurred functions under this option is the by the ULB, but would be made same as in the option 1. The gate fees perative by a private party. This payable in this case would be lower @ scenario is also quite likely to be Rs 200 per tonne, and thus the opera- implemented in the Pilot City as not tional costs for the disposal would be many private parties/NGOs are lower. coming forward for primary collection and also that due to high initial capital Option 4 (100 percent responsibil- investment required for the land-fill, a ity of ULBs for MSWM): Option 4 is BOT project may not yet be feasible. In among the least likely scenarios where this case, the Capex for land-fill has all functions and components of MSW been taken as Rs 30 million. However management are undertaken by the no gate fees are envisaged which ULB. This option is also the most expensive proposition in view of the Summary of Future Scenarios Considered (Pilot City ) 67 Improving Management of MSW in India inefficient functioning of the ULB city are already above the average and Staff. the additional costs of upgrading even only the collection and transport Option 5 (100 percent system to provide complete coverage privatization of MSWM) : This is an would mean a significant increase in idealistic option in which all activities the unit costs of MSW. To then pro- would be carried out in the private vide an upgraded processing and sector, except for sweeping & sanita- disposal could in some cases virtually tion services, which owing to ad- further double the unit cost to levels equacy of municipal staff is likely to that are simply not considered afford- remain as the functional responsibility able at present. of the ULB. The analysis behind the figures EVALUATION AND provides some background and RECOMMENDATIONS insight. Estimates were made of the It has been observed that for street investment and operating costs for the sweeping, the private operators main items for each of these options. are 3-4 times more cost efficient At this point, many of the figures are than the ULBs and the same ratio approximate but there is sufficient has been reflected in the cost data to see the key patterns and issues figures, wherever applicable. emerging. The comparative evaluation However, an immediate shift to all carried out has been summarized in private contracting is not practi- the table given below. cally nor politically feasible. Accepting that these figures The overall costs would be the are best read as comparative rather lowest in Option 5, where the than absolute, a number of broad entire investment and operation conclusions can again be drawn. It is for processing and disposal as well known that current unit costs in this as transportation is undertaken by Comparative Evaluation of the Options for Pilot City Note: The Capex for the year 2005-06 has been taken as one-sixth of the total value for calcula- tion of Unit MSW management costs. This has been done based on an assumption that the average economic life of the equipment is 6 years. 68 Overview and Challenges the private operators, due to the investment together would rise to assumed better cost efficiency of approximately 50 percent of the the private sector. However, there municipal budget. are clearly operational and finan- The ULB should probably consider cial risks in this approach, even it adopting Option 1, a plausible is feasible. mixed option, which can be practi- Under the most probable scenario, cally implemented and is in line which is Option 1, the operating with government policy. However, costs for MSW for the year 2005-06 the various technical options now would be Rs 42.59 million, which need to be re-assessed to find is about 26-27 percent of the potential costs savings and the city municipal budget. Under Scenario must work on an implementation 4, where all investments and schedule for upgrading which will operations are to be done by the be consistent with its ability to raise ULB, the cost of operation and revenue. 69 Improving Management of MSW in India END NOTES 1. Population size 100,000 and above 23. Quoted in article in "Down to Earth: 200 Special" CSE Delhi, 2. Population size 50,000 to 99,999 2001 3. Population size 20,000 to 49,999 24. Graphically described in various articles. See CSE (ref) and 4. However, review of the available literature and discus- recent article in Independent Newspaper of London. sion with colleagues inside and outside the Bank failed 25. Chintan Environmental Research and Action Group "Space to identify any body of work which is able to demon- for Waste" New Delhi 2004. strate these links quantitatively and is also relevant to 26. "Review of Contractual arrangements in India ­ background the Indian context. study by IDEC under this AAA 5. SENES 2004 - Referred to as Background Report 27. See, for example, "Guide Pack on PSP in MSW management" 6. Sector Study by EAP by Cointreau and Coad, SKAT/WB 2000 7. NSWAI/ENVIS Report 2003 28. Informal discussions suggest very different views on 8. Detailed figures starting to come from the action plans efficiency. There is no comparative data available. suggest that these may be underestimates, probably 29. The FIRE program supported by USAID has been doing because many of the costs are not easily identified in considerable work on this issue. current municipal accounts. 30. Findings from a review of contractual performance by IDEC, 9. It is also estimated that approximately 1 acre of land is as part of this AAAs. required for Sanitary Land filling of 40,000 tonnes of 31. The Bank has drafted standard DBO contract documents MSW which are now being applied in cases in the Middle East and 10. Bellary, Shimoga and Tiptur in Karnataka; Hyderabad, the Philippines, although experience with this approach is Visakhapatnam and Vijayawad in Andhra Pradesh also relatively limited. 11. Shimla and Nanital in North India and Shillong in 32. "Review of Contractual Arrangements in MSWM in India" North-East India IDEC, finalized Nov.2005. 12. Based on the experience from the pilots, it is planned to 33. ONYX of France, through associates, have been contracted simplify and make the model available, with some to carry out collection and transport for Chennai Corpora- support, to other municipalities or States who request it. tion. 13. Municipal reform work through Bank's Infrastructure 34. Prunier, unpublished report unit envisages to enhance financial strength of ULBs 35. Ref Technical Paper 14. Studies for KUIDFC by CRISIL have assessed the 36. For example, South Africa and the State of Tasmania in available debt raising capacity for a number of munici- Australia have detailed systems. Some of the ideas from palities. A relatively small number have any real these systems have been used in discussions with the State capacity. of Karnataka. 15. A range of typical figures is expected to emerge from 37. A process for site selection among alternatives has been the site specific exercises that are now beginning. drafted by consultants for CPCB and has been used in some 16. In Bank funded projects in Mexico and China, for examples in Karnataka. This may be overly complex but the example. basic principles and approach are clearly helpful. 17. A very useful reference is the Bank/ESMAP publication 38. Large schemes, especially within metro areas, might be "Handbook for the Preparation of Landfill Gas to Category A but these would be a minority of the possible Energy Projects in Latin America and the Caribbean" investments and would probably be addressed as separate World Bank 2004. projects rather than as part of broader municipal investment 18. To date there has been only one fully developed Carbon programs. Finance project in MSW in India. This is a bio-methana- 39. Once specific investments have been proposed by clients for tion plant at Lucknow which has had a number of possible financing under municipal projects, site specific problems preventing it from achieving full success. ToRs will be prepared and from experience with these 19. In each case some form of Infrastructure Corporation, processes, the generic approach will be updated and refined. within the State's Urban Department. 40. Over the past one year Shimla Municipal Corporation has 20. This document is available in draft and has been implemented MSWM user fee for door-to-door collection approved by the State Government. The final version (monthly fee ranging from Rs 35/- for households to Rs has not yet been distributed 805/- for big hotels). The user fee is over and above the property tax. 21. Such as work supported by JICA in Delhi. 41. For example KUIDFC in Karnataka. Delhi Municipal 22. Report on Scaling up Public Participation by Toxics Corporation is also undertaking IEC. Links, an NGO working on waste collection and reduction; and other sources. 42. Andhra Pradesh, as one example, has begun to identify possible regional systems. 70 Overview and Challenges REFERENCES Administrative Staff College Workshop proceedings: Roadmapping for an Improved Solid Waste Disposal System in of India Hyderabad. _________ Preparation of MSW Action Plan in Selected Municipalities of Vishkhapatnam, Hyderabad and Vijaywada in the State of Andra Pradesh, Sept, 2004. Chintan Environmental Space for Waste, Planning for the Informal Recycling Sector. Research and Action Group CPCB Indicative Guidelines for formulation of Action Plan for Management of Municipal Solid Waste (MSW), 2004. Gabriela Prunier Prospects for International Private Sector Participation in Municipal Solid Waste Management in India, January 2004. GoI Municipal Solid Wastes (Management and Handling) Rules, 2000. IDECK Review on contractual arrangements in Solid Waste Management, India Status. John F. Smithson and Mott Initial Draft report of Findings and Observations over the period 15 to 23 April 2005. Macdonald Michael Schaeffer India: Multi-Year Capital Investment Planning (CIP). Muncipal Financial Capacity Analysis and Project Feasibility for Solid Waste Management, May 2004. _________ Framework for Effective Local Government Budgeting and Financial Management, March 2005. MoUD Manual on Municipal Solid Waste Management. N. Sampath Kumar Preparation of MSW Action Plans in the hilly towns of Shimla, Shillong and Nainital and Pradeep Dadlani Ltd. Status - Submitted Analytical & Financial study on Solid waste management for Nanital, September 2005. NEERI Guidelines for Site Selection for Sanitary Landfilling. Pradeep Dadlani Testing and Application of Financial Model for Muncipal Solid Waste Management. Robert Reid Summary: Waste Management in India (covers Sustainable Development of Waste Management Systems; Landfill Development and Operation; Private Sector Involvement) October 2004. Roger J. Bastone Municipal Solid Waste Management in Karnataka, Draft Status Report, Revised March 2004. Sampath Kumar Preparation of MSW Action Plan in selected Municipalities of Puttur, Mangalore and Gulbarga in the state of Karnataka. SENES Draft Report: Issues and Opportunities for Municipal Solid Waste Management in India, Consultants India Pvt. Ltd. & March 2004. IRG, System South Asia Pvt. Ltd. _________ Overview at Goa Workshop, May 2004. 71 Improving Management of MSW in India 72