handshake
IFC's quarterly journal on public-private partnerships
0W WEIGHING THE OPTIONS: Burn or bury?
Ln
m WASTE AND CLIMATE: Supporting governments
5 COMMUNITY ENGAGEMENT: Integrating India's
informal sector
INTERVIEW: "Trashed" documentary Director
BONUS: Podcast with 201 3 CNN Hero on
community cleanups
C    International
Finance Corporation
World Bank Group


IN PARTNERSHIP WITH
Australia * Austria * Brazil * Canada * Catalonia (Spain) * Flanders (Belgium) * France * Ireland * Italy
Japan * Kuwait * Netherlands * Norway * Sweden * Switzerland * United Kingdom * United States * Public-Private
Infrastructure Advisory Facility (PPIAF) * Global Partnership for Output-Based Aid (GPOBA) * Private Infrastructure
Development Group (PIDG) * African Development Bank * Asian Development Bank * Brazilian Development Bank
(BNDES) * Caribbean Development Bank * Central American Bank for Economic Integration * European Investment
Bank * European Bank for Reconstruction and Development * Inter-American Development Bank * Infrastructure
Consortium for Africa * Islamic Development Bank
handshake                                                                    Issue #12 -January2014
IFC's quarterly journal on public-private partnerships
IFC Advisory Services in Public-Private Partnerships
2121 Pennsylvania Avenue, NW * Washington, D.C. 20433, USA
+1 (202) 458 5326/7 * ifc.org/ppp * handshake@ifc.org
Editorial
Tanya Scobie Oliveira * Alison Buckholtz
Art &Design
Victoria Adams-Kotsch
Digital Strategy
Jeanine Delay
Disclaimer
This journal was commissioned by IFC, a member of the World Bank Group, through its Advisory Services in Public-Private
Partnerships department, which helps governments improve access to basic public services through public-private partnerships
in infrastructure, health and education.
The conclusions and judgments contained in this report should not be attributed to, and do not necessarily represent the
views of, IFC or its Board of Directors or the World Bank or its Executive Directors, or the countries they represent. IFC and the
World Bank do not guarantee the accuracy of the data in this publication and accept no responsibility for any consequences
of their use.
Cover photo @ Global Environment Facility, General Santos, Philippines


One of the most pervasive myths about waste is that there's always
an "out"-as in, when something is no longer useful, you can
throw it out. But trash stays with us long after we think we're rid of
it. And this is not your grandfather's trash. The alarming accumula-
tion of waste today is a product of unrelenting urbanization as well
as the materials that power growing economies. This waste pollutes
air, land, and sea, hastening climate change, which in turn worsens
the effects of natural disasters.
New approaches in public-private partnerships (PPPs) in the waste
sector combine public sector leadership, private sector skill and effi-
ciencies, community involvement, and innovative financing methods
to tailor solutions to local conditions that can beat back this grim
vision. Partnership successes in Berhampur, India, for example,
create a model ripe for replication, as we see in "Consensus for
Cleanup." The Clinton Climate Initiative's support for PPPs that
reduce methane ("Nurturing New Partnerships") may ultimately
blunt waste's impact on the climate.
Technology can provide solutions for many different waste manage-
ment scenarios. "When does EFW work?" and "Due Diligence"
both guide municipal officials toward a tailored solution that's best
for their area. In "Burn or Bury," authors Daniel Hoornweg and
Perinaz Bhada-Tata, known most recently for sounding the waste
alarm in Nature, explore the choices of landfill versus incineration.
It's critical to engage communities in partnerships to reduce and
manage municipal waste. The 2013 CNN Hero of the Year, Chad
Pregracke, founder of the nonprofit cleanup group Living Lands
and Waters, knows this first-hand. As he says in the first Handshake
podcast: "These are big problems with no easy answers, but we're
creating solutions as we go."
Laurence Carter, Director  Tanya Scobie Oliveira, Editor
IFC Advisory Services in Public-Private Partnerships


Features
Overview
Due diligence 110
America's dirty love affair with trash | 20
PPPs
Linking public & private | 22
E-waste explained | 31
Cleaning up the law | 34
Ukraine clears the air |36
Consensus for cleanup | 40
Energy from waste
When does EFW work? 44
Burn or bury? 52
Climate
Mitigation via waste management 56
Nurturing new partnerships 60
Post-Kyoto 64
In this issue
2| IFC.ORG/HANDSHAKE


Columns
Community Engagement
Integrating the informal sector 66
Kampala's campaign |74S
: What a waste |106
Innovation                                          INSIDE INFRASTRUCTURE
Crowdsourcing for waste management 76         .          o)ninentaul on culrent eveits
Together in trash | 78
dilemma |114
: COMPASS
**
*o Surv in- the PPP lanresape
2                                           A decade of deals |126
: MONEY TALKS
PPPs turn trash to treasure |132
. LEGALEASE
A legal look at EFW |50
*
Interviews
Candida Brady: Giving garbage its "aha" moment 116
Chad Pregracke: Trash talk | 72
IFC | 3


Contributors
Farouk Mlahl Sanna
Atilio Savino                                                     Candida Brady
Delphine Arri                                   Jeff Delmon
is an Environment Specialist in IFC's Corporate  is a Senior PPP Specialist in the Finance and Private
Environment, Social and Governance Department.  Sector Department of the Africa Region for the
Farouk Mollah Banna                             World Bank, based in Tanzania.
is an Environmental Engineer with the Urban Devel-  Amandine Dukhan
opment and Resilience Unit of the World Bank work-  is a Project Manager for the Local Authorities and
ing on Municipal Solid Waste Management projects.  Urban Development division at the Agence Fran aise
Christel Bourbon-S6clet                         de D6veloppement.
is an Investment Officer, Infrastructures and Mines  Carlos Silva Filho
division, at Proparco, the development finance  is the CEO of ABRELPE, the Brazilian Association of
institution partly owned by Agence Franqaise de  Waste Management Companies, and a board member
D6veloppement.                                  of the International Solid Waste Association.
Jonathan Brufal                                 Tom Gray
leads the International Projects Team at Wragge &  is an Associate in the Energy and Infrastructure team
Co LLP, specializing in energy and infrastructure  at Wragge & Co LLP
projects in emerging markets.                   Sanjay K. Gupta
Jeff Cooper                                     is an Independent Advisor and Consultant working
is past President of the International Solid Waste  on informal sector livelihood and integrated solid
Association.                                    waste management issues.
41 IFC.ORG/HANDSHAKE


Daniel Hoornweg                                   Christopher Olobo
is Professor of Energy Systems at the University of  is an Investment Officer with ITC Advisory
Ontario Institute of Technology in Oshawa, Canada.  Services in Public-Private Partnerships, based
Edward Humes                                      in Nairobi, Kenya.
is the author of Garbology: Our Dirty Love Affair  Adele Paris
with Trash.                                      is an Investment Officer with ITC Advisory
Silpa Kaza                                        Services in Public-Private Partnerships, based
is an Urban Analyst in the World Bank's Urban    in New Delhi, India.
Development and Resilience Unit working on solid  Eva Rossi
waste management and low carbon planning.        is a Social Specialist in IFCs Corporate Environment,
John Kjorstad                                     Social and Governance Department.
leads infrastructure research and business support  Atilio Savino
for KPMG Global Services on behalf of partners and  is Ambassador for Climate Change at the
member firms around the world.                    International Solid Waste Association.
Tatiana Korotka                                   Perinaz Bhada-Tata
is Director of the PPP Professional Services Group of  is a Solid Waste Consultant currently based in
the USAID Public-Private Partnership Development  Dubai, UAE.
Program in Ukraine.                               Nathalie Yannic
Markus Luecke                                     is an Investment Officer, Infrastructures and Mines
is an Environmental Management Expert for the     division, at Proparco, the development finance
Gesellschaft fdr Internationale Zusammenarbeit   institution partly owned by Agence Franqaise de
(GIZ) and heads the regional network "SWEEP-Net."  D6veloppement.
Karen M. Luken
serves as the Global Waste Director for the Clinton  INTERVIEWEES
Foundation's Climate Initiative.                  Candida Brady
Muhabbat Mahmudova                                founded Blenheim Films in 1996 and has produced
is a Research Analyst at Infrastructure journal,  and directed documentaries on a variety of subjects.
the leading global infrastructure information     In 2012 she completed her first solo documentary
service for the global infrastructure community.  feature film, "Trashed," which follows Academy
Award winner Jeremy Irons on a world tour as he
Antonis Mavropoulos                               discovers the pressing issues surrounding waste and
is the Founder and CEO of D-Waste and STC Chair   sustainabili
of the International Solid Waste Association.
Chad Pregracke
James D. Michelsen                                founded the nonprofit group Living Lands and
is Senior Industry Specialist for Waste in IFC's  Waters, which is credited with collecting over 7
Climate Business Department.                      million pounds of debris from American rivers. He
Mick Mullay                                       has received the Jefferson Award for Public Service,
is Chief of Party of the USAID Public-Private     Americas version of the Nobel Prize, and was the
Partnership Development Program in Ukraine.       2013 CNN Hero of the Year.
IFC 15


<vL
By Daniel Hoornweg, University of Ontario Institute of Technology
& Perinaz Bhada-Tata, Consultant
6 1 IFC.ORG/HANDSHAKE


PERSPECTIVE
Municipal solid waste (MSW) management is
the most important service a city provides; in
low-income countries as well as many middle-
income countries, MSW is the largest single
budget item for cities and one of the largest
employers. Solid waste is usually the one service
that falls completely within the local govern-
ment's purview. A city that cannot effectively
manage its waste is rarely able to manage more
complex services such as health, education, or
transportation.
Not surprisingly, poorly managed waste has an
enormous impact on residents' health, the local
and global environment, and the economy;
improperly managed waste usually results in
down-stream costs higher than what it would
have cost to manage the waste properly in the
first place. The long-term impact is also dire,
as improperly managed waste contributes to
climate change in the form of greenhouse-gas
emissions (the methane from the organic frac-
tion of the waste stream), and has serious short-
and long-term health impacts.
This issue of Handshake delves into the messy
area of MSW for all of these reasons and more.
Authors share innovations at work in develop-
ing countries, public-private partnership (PPP)
models that can be replicated, and technology
IFC | 7


It's important to understand in what ways [waste] is a new
problem that requires a fresh look.
that is increasing efficiency in the sector. Several  Solid waste is generally considered an "urban"
articles also help demystify the many options  issue. Waste generation rates tend to be much
available to municipal officials today, such as the  lower in rural areas since, on average, residents
choice of landfill model versus energy from waste  are usually poorer, purchase fewer store-bought
(EFW) model.                               items (which results in less packaging), and have
higher levels of reuse and recycling. By 2050,
MORE PEOPLE, MORE TRASH                     as many people will live in cities as the popula-
tion of the whole world in 2000. All these city
The articles in the following pages explain the  dwellers will likely generate more than 8 million
scope and scale of the waste problem, but first  tonnes of waste a day-twice as much as today.
it's important to understand in what ways this  This will add challenges to an already tough
is a new and growing problem that requires a
fresh look. Solid waste is inextricably linked to  prolem th e b c d re sorstogethe
urbanization and economic development, and  wl edt     suemc        oersosblt
glblytpc furbanization     isd icnmcdeeomnreang,  for waste generation and disposal, specifically
globally the pace of urbanization is increasing.  poutdsg  n  at eaain      omJ
As countries urbanize, their economic wealth  produt desnnste spron. Fol-
increases. As standards of living and disposable  tured PPPs can result in significant improve-
incomes increase, consumption of goods and
incoes ncrase,conumpion f godsand ments in efficiency and quality to solid waste
services increases, which generates more waste.
According to the World Bank Report "What a
Waste," almost 1.3 billion tonnes of MSW are  To make PPPs for MSW successful, governments
generated globally every year. The actual per  must consider the content and volume of the
capita rates are highly variable, geographically,  existing waste stream, the appropriate technolo-
as there are considerable differences in waste  gies, the imperative of stringent environmental
generation rates across countries, among cities,  standards and community engagement, who will
and even within cities,                     pay for what, and the availability of experienced
private partners.
81 IFC.ORG/HANDSHAKE


These are big, complicated issues, but the results
are straightforward. As the world hurtles toward  The public and private sector
its urban future, how we handle municipal solid
waste today will be one of the best predictors of  together will need to assume
future generations' welfare. M            more responsibility for waste
generation and disposal.
This article was adapted in part from "What a Waste: A Global Review of Solid Waste Management" by Daniel Hoo-
rnweg and Perinaz Bhada- Tata, Urban Development Series Knowledge Papers, World Bank, March 2012, No. 15.
WASTE MARKETS PREDICT ECONOMIC TRENDS
In the last 10 to 20 years an additionali
challenge has emerged for the waste indus- prdcieoeonmctns,rpig
try: the growing global vagaries of second- sinfctldungeomcdwtrs
ary materials markets. Many municipal  (hnact slatal oafr         rc
recycling programs in Europe and Northa
America were started with the recycling
markets relatively close to source. More  scnaymtrasmreigde         o
recently, marketing of secondary materials  ythv h  aedge  fspitcto
has emerged as a global business. The price asohrcm dies(rgldutosus
paid per tonne of waste paper in New York ofrlaityquiy,eenltesadth
City is often based on what the purchase  sernme  fitrse     ate)
price is in China. The majority of waste
recycled in Buenos Aires, for example, is
shipped to China. The volatility of second-  -xepefo  Wa      at:AGoa
ary ~ ~ ~ ~    ~   ~   ~~ngoprunte o materials pricishsicesd  aigRvefSldWseM ng,mnt
secondary ~ ~   ~    ~    1F maeil1akeigde9o


Urbanization and economic growth are leading to a rapid rise in
municipal waste generation. In 2012, the World Bank projected
that municipal solid waste will grow from 1.3 billion tonnes in
2010 to 2.2 billion tonnes by 2025. Many cities are struggling
with municipal waste that is increasing in quantity and changing
in composition while the financial resources to manage waste
remain flat.
But solving the solid waste problem is not always a matter of
increasing investment. Cities could first focus on the fundamen-
tals-understanding local context and not overly complicating
the waste management system-while designing for the antici-
pated change in waste quantities and composition.
Waste can be a financial asset if cities collaborate to attract
investors, select appropriate technologies, extract value from
recoverable materials, and work with the informal sector.
-Silpa Kaza & Farouk Mollah Banna,
World Bank
10 IFC.ORG/HANDSHAKE


OVERVIEW
THE CHALLENGE
3.5 MILLION
tonnes of solid waste generated globally
per day in 2013.
6 MILLION
tonnes of solid waste expected to be
For every truckload of         generated globally per day in 2025.
product with lasting
value, 32 truckloads of
waste are produced.           THESOLUTION
We have a waste-
making system.                         Bui MSW systems that reflect
Clearly we cannot con-                cmposti
tinue to dig up the Earth
and turn it to waste.                  Focus on fundamentals of waste
Wmanagement before racing to
-Ray Anderson, Founder of Interface   sophsticated solutions.
6' Fortune magazine's "Greenest CEO
in America."
in Aeria."Prioritize waste collection and
.............  .............            di sposal methods that are afford-
able for the local customer base.
WATCH THE TED TALK.
WATC  THETED  ALKSelect technologies that can be
Ray Anderson: The                        operated and maintained locally.
business logic of
sustainability
IFC |11


FUTURE-PROOF                               GET PRICES
....111  YOUR SYSTEM                         W      RIGHT
* Design the system in a way that it        * Make polluters/waste
can grow with the population.              generators pay.
* Anticipate whether economic growth        * Ensure your pricing incentivizes
will change local waste composition.       waste prevention and diversion.
* Consider the future impact of climate
change on your facilities.
WASTE COMPOSITION BY INCOME
* Organic  * Glass
* Paper    0 Metal
* Plastic  * Other
LOW-INCOME               HIGH-INCOME
COUNTRIES                COUNTRIES
12 IFC.ORG/HANDSHAKE


AA,
E FFORT STA RTS HERE .............
MAKE NICE WITH                             EXTRACT WEALTH
qP         YOUR NEIGHBORS                            FROM WASTE
* Regional waste facilities are cheaper    * Create jobs for informal sector.
to build and operate.                    * Pull energy from waste.
* Bundling multiple waste systems          * Divert waste to save money.
within a region makes a deal more
attractive to the private sector.        * Mine the waste stream for
valuable commodities.
GLOBAL SOLID WASTE COMPOSITION
Organic-46%          Glass-5%
Paper-17%            Metal-%
Plastic-10%          Other-18%
Source: "What a Waste: A Global Review of Solid Waste Management" by Daniel Hoornweg and Perinaz Bhada- Tata, Urban
Development Series Knowledge Papers, World Bank, March 2012, No. 15.
IFC 113


-  .0  4 .~ 0I~                       .04S
ther
*~~~ 4. .                       -
4~~~.~ !..4. 4              0  -
By John Kjorstad, KPMG Global Services
garage-and two old oil barreh perched below prbe-oefanuwtdcheadoc-
a    small hill about 100 meters from her house.  so  a   . T  e
This was waste management on the American                0
frontier (or at least in western North Dakota).
My grandmother incinerated household trash in  .
the barrels, and for larger appliances-generally ouofmn.Iolyiweetlyhaes.
anything that couldn't be burned, composted, Astegoapputinctnesogrw
parked, or sold for scrap-there was a pit hidden  wsemngmn  a eoemr ohsi
away in a nearby coulee.caetodawihainrsngpblm                           oe
These days, rural household waste can behuasmnsorwst.Adinly,s
collected by professional services and sent to thwol'ppuainbgstohftrmte
landfill. My relatives still burn what they can, ruatoherbntenwclsofiyflk
but plastics are taken into town to be recycled.
Even the old milk truck has been sold, restored sevc-dsnohaetdalwhteraiis
to its original condition and is now pampered oftewsehygnra.Teyilbni,py
like it was a Porsche 91 1-driven only on sunny  tertxs n  ogtaoti-evn  aae
summer days and special occasions. I guess one  mn oct lnesadpoesoa evc
man's trash is another man's treasure.   poies
LET'S THN      AOUT TRASH              isntapriualatrcveeore.Htr-
It's intriguing how quickly we can become   ct lnest hoeteceps ramn
disonncte frm or wst, wen e orsevesoinsructue,alevers gav witmch aethouh
14 1 IF.OG/ANSHK
Unlie mygranmothr,.0gre.up n a mal
wih.urnegho. obdoe.Ot f igt.n
humnsmensmoe                                  ast.  ddtinaly a
th wol' pouato begis tostfoS h
ruraS.otheurba, te0nw cass f cty olk
if the'r luk enug to have goo puli
seviesdesno hv t da wthth4eaite
ofth wse heenrae The wil biSi,a
ther t                            xes 0d4f rge  a outit -eaing mange
men tocit plnnr and prfsinaevc
*  .providers.
Of cors taxe ar no.las4 oua,5n   at
14 | IFC.OG/HANDSHAK


INSIDE INFRASTRUCTURE
more sophisticated than what my grandmother  cag nrrlcmuiisi o epn   p
did on her farm. The two mainstays of global buprgesibinma.
waste management involve either burning trash
In 20 10 1 flc onasalpiat0icatt
or burying it in landfill. Both of these options  Adre,apaei h  hne sad ewe
carry some significant environmental baggage. thUnedKgomadFnc.Ateple
As the world's population grows (particularly
with a wealthier middle class), these activities
are viewed as unsustainable-and, increasingly,  pol oln,tepltpitdt  lf ag
socially unacceptable.               tp"I  te   od,ti  stepitfo     hc
A 215ST C ENTU RY APPROAC H          T  efi,Adre a       oenwseds
While public authorities can change to some  psladrccigpormwt otieic
extent how people consume-by incentivizing gabgtketoprpitefclisonery
the use of more efficient packaging and biode- GursyThiladsasocndengnry
gradable materials-governments cannot feasibly fo  at i neoi ietr octbt
limit consumption. This requires the waste issue watexotndnrgimrtcsssth
to be viewed and managed more holistically in comntcurtlbrsexnivolfr
the 2 1st century.                   pwr
Therefore, more and more private companies  Hwvr ipn  at notesawsoc h
and public authorities are developing strategies  ceps ouinfrtersdnso leny
for not only reducing cost but also generating  Wiei a olne esc nisetee
revenue from waste and recycling. With such a  i ean  eiu rbe  rudtewrd
valued asset to manage, this will have a profoundUnieohrctcascos-uhstaspt
impact on the quality of life surrounding histori-orerg-hwatinuryasosrngc-
cal waste treatment facilities.noidrvrtsuptinvao.Thtuh
In India, for example, the closure of the Gorai  i,teei osotg finvtv ouin
dumping ground in Mumbai was a public- avialtoretndmagwse,btahr
private partnership that transformed the quality agerlanwispaduilnnsstpy
of life in the local community. In addition to  frayhn  te hnteceps pin
the health, safety, and counter pollution benefits  Ti a ocag.Po  at  aaeeti
achieved by sealing in the dump in 2009, the adetfruuegnrtistopyAsheac
new operators now have designs on generating oftcnlgqukesorpbicahr-
electricity from waste methane currently flared tisnetovlethrapochowsead
from the site.exlrhotehooycnbingaedno
This is how waste management is rapidly evolv-  eitn ytm oehneefcec n uti
corledc aruthe sal i
l   th       0  a i
ing- ou oe th0e n sad                 0Ta' hoa
ti.0nohrwrs                               hs stepitfo     hc
reietsd m e  trs0nt  h  waesblw
Tob ar,Adre ha aodr wat dis
posal and recyling program itcoaiezd
garbag tae toaporae                    0clte onnab
Gurney Th isadi ls osdrigeeg
fromwastoviaanaeobi                         0ietr to cu -bt
wat0xotadeeg motcssa h
comnt0urnl un xesv i o
0                     power.
Hoee,tpigwseinotesawsoc0h
chaet0ouin o0hersdnt fAleny
Whl*i ayn0one b0uc nisu tee
St rean                        00eiospolmaoudtewrd
Unieohrcitclscos                           suha  rnpr
orenrg     -hewat     inutyhsn0togeo
noi 0iert spor nnv0in Tetrt
is thr  0sn  shrtg  of inoaie0 ouin
aviabet tetan                          aag  ate u0rte
a  -eea an 0iepeduwligest   a
fo ntigohrtanteceps pin
Thi hs o hage Por ase angeen i
a*et o fuur geeain 0opystepc
oftcnlg*qikn,orpulcatoi
tisne0oeov hi praht                at n
exporehowtehnoogyca beitgatdio
existing 0ytm oehneefcec n uti
reeac0o uueues
in0i rbnara. noruntly0hepceo
IF0|1


In the documentary "Trashed," producer/director
Candida Brady sets out to discover the extent and
effects of the world's waste problem. As she trav-
els around the world with actor Jeremy Irons to
destinations wrecked by pollution, she brings the
problem close to home-literally. Here, she speaks
to Handshake about how to effectively convey the
scope of the global garbage crisis.
Interview by Alison Buckholtz
4WC'-
-4wC A                  1                      r
i- Vil


INTERVIEW
One of the most difficult things to convey about
the waste problem is its scope-people tend to
see it as it affects themselves and their immediate
community or city. In "Trashed," you tackle this
problem by allowing the viewer to follow you to
several places around the world that have been
devastated by waste. What did you see in these
travels that you hadn't understood before about
waste?
I understood the scale of the problem fairly quickly from my
research. I spoke to many people from communities all over
the world who all had similar horror stories to tell about waste.
But in the film, we saw the scale with our own eyes. If you
stand on what was once a white sandy beach in a once-beautiful,
historic ancient port and see not one but two trash mountains,
each over 40 meters high, and think every city in the world has
these in one way or the other, it really brings it home.
We hope the film will demonstrate that by
changing the way we live our lives, we can
contribute to our own survival and we//-
being and ultimately that of the planet.
0_1                                        -Jeremy Irons,
from the "Trashed" website
Photo @Blenheim Films
IFC 17


Waste and climate change are inextri-       Individuals can exert control over
cably linked. But other than the areas      the trash issue, but often feel inertia
of the world hardest hit by climate         because they think that one person
change-related disasters, this link is      can't make a difference. How do you
still abstract to many. When convey-        prove otherwise?
ing this to others, what points do you     We showed really positive change in different
find most persuasive? In other words,       ways, from the individual to the big city. If a city
what arguments tend to cause the            like San Francisco, with all its high rise build-
"aha" moment of understanding in            ings and busy people, can effect such a dramatic
the person you're talking to?               change-80 percent diversion from landfill-
isn't that how change has always started? It's
I don't think anyone has the same "aha" moment. one person at a time.
For me, it was the fact that during my research I
read a study about babies being born with over
250 different manmade and toxic chemicals in  If "Trashed" has a sequel in 10 years,
their blood, flame retardants and the like. These  what do you think the message
children were all tested from different hospitals  might be?
in different areas. Up until that point I had
hoped I had imagined it all. I also found the  One of hope-that change happened. [a
research on the effects of pollution on the killer
whales and other cetacea; one scientist I spoke
to believes these will be gone in our lifetime
because the chemical burden in their bodies
is too great. We made sure we only used facts
which were backed up by peer reviewed pub-
lished papers.
I have said this before but I also think everyone
should stand in a landfill for a day to understand
the smell and how it makes you feel. None of us
could talk after filming in them and one of my
crew members was violently ill after we filmed in
the one in Lebanon.
Can'tima ad   ifeec.Hwdyo
Photo Blenheim Films
18 1 IFC.ORG/HANDSHAKE


WATCH THE TRAILER
FROM
"TRASHED"
-Y ~1
We buy it, we bury it,
we burn it, and then
A- i we ignore it.
kw1
18.Sarjev
Ä 1C know film can help
to change things. Yy
-Jeremy Irons on tel/ing the
stories behind "Trashed,
Sarajevo Film Festival, 2012
.18. ajv
Pilm Festival
IFC  19


By Edward Hurnes, author of Garbology: Our Dirty Love Affair With Trash
The head of a plastic bag industry group, whose Jutheopse.Aerimsngntewrl
full-time job consists of battling local bans on  o  ablg  'elandsm  hcigtuh
disposable grocery sacks, made a provocative abuthhihcssoorgrae.Heae
observation to me about trash recently: Don't soenmrstcnid:
be so quick to reject waste, he warned.
"Zero waste would mean a zero economy."AEINSMKTWCAS                     UH
Equating green with economic ruin is a familiar  WSEPRPRO      SI   90
refrain, of course, but this claim about waste
is worth a hard look. Trash really is the biggest pakgn,wpscotie,adbg,th
thing Americans make, and it tends to get bigger  bgetcmoeto  u  abg hs     as
in good times while shrinking during reces-
sion. Does that mean, as counter-intuitive as it GAB EISORNM      ROEEX       RT
sounds, that garbage is good? Should the old saw Nocmptr,as,rpln.Oubigt
about waste not, want not really be waste more,  epr stesrpppradmtlta       hn
get more? Should Americans just chill out and
revel in the fact that we are the most wasteful  sel bak to u.A e Afa r  it  To
people on the planet, rolling to the curb 7.1 hinjs th o pActor.
pounds of trash a day for every man, woman,  MN aMEICAN COMUITE          PAY
and child-a personal lifetime legacy of 102
tons of garbage each? Doesn't that just show that  me FOr WAse
we're buying lots of stuff and living large-that
we should throw ourselves into a dirty love affair  or schoo texboks
wqit trash?  heoomcri sa aiir           W   ST   E   ESN     SI   90
20ust                                          the pp it e A f ro m in gtn  trah"
is~ ~ ~ ~ ~ ~~~~~~~o Got  adlo.Tahral stebget pcarbolgy I'ves leanesm shkndg truhs
thin Amricas mke, nd t teds o gebige abouget thehihposts of our garbage. thee dare.
in  oodtim s  hil  shinkngdurng  ece-WASTAE E R  S NUMAS RI N E 960.T
sion Dos tat ean ascouterintitie a it Not computers, cars, or planes. Our biggest
souns, hatgarageis ood Shuldtheoldsaw export is the scrap paper and metal that China
abou wate nt, antnot ealy b wase mre, turns into products and packaging, which they
get ore ShuldAmeican jut cilloutand sell back to us. America has turned itself into
peope o th plnet rolingto he urb7.1 China's trash compactor.
poudsof rah da fr eer mn, omn,  MANY AMERICAN COMMUNITIES PAY
andchld- prsnallietie egcy f 02 MORE FOR WASTE.
ton ofgarageeac? Des t hatjus shw tatMore money is spent on waste management
than for parks and recreation, fire protection,
we soul thow ursevesint a irtylov af ir or school textbooks.
with trash?
20 1IFC.ORG/HANDSHAKE


OVERVIEW
MANY AMERICANS CREATE HIGH                her familys commitment to buying unpackaged
AMOUNTS OF WASTE.                         bulk goods, refusing plastic and disposable prod-
The average American makes 7.1 pounds of  ucts, selecting used and refurbished items, and
trash a day, according to the best available data  buying more wisely, with a focus on durability
(from a biannual survey of American landfills by  and need rather than disposability and impulse
Columbia University and the journal BioCycle).  purchases. It's not enough to reuse and recycle,
That compares to 2.5 pounds per person in  Johnson says. "You have to refuse!"
Japan.                                    The Johnsons' household expenses have dropped
THE U.S. MAIL IS MORE THAN HALF           by40 percent, making college funds, a hybrid
car, and cool vacations possible. Their non-
JUNK MAIL.                                recycled, non-compostable trash fits in a mason
Eighty-five billion pieces of junk mail, weighing  jar-for the year.
4 million tons, were sent last year (about one  Zero waste doesn't mean zero economy. It means
out of every 100 pounds sent to the landfill).  a different economy, with different winners. And
We subsidize junk mail with an artificially low  fewer mountains of garbage. [
postal rate and by excusing the creators of this
unwanted waste product from cleaning up their  Reprinted with permission of the author. Photo courtesy of Garbology:
own mess.                                 America's Dirty Love Affair with Trash. For more information:
http://www.edwardhumes.con.
AMERICA SENDS 69 PERCENT OF ITS
MUNICIPAL SOLID WASTE TO LANDFILLS.           YOUR GARBAGE
By comparison, the Netherlands and Austria     QUESTIONS,
landfill 1 percent of their trash; Sweden, 2
percent; Belgium and Denmark, 4 percent.      ANSWERED
Germany claims zero landfilling. Those countries
recycle at two to three times the rate of the U.S.,
and make energy with the rest of the refuse. We,
on the other hand, make geographic features out
of our trash.
Waste is a cost, not an economic engine. Busi-  I     all th h ag            y
nesses understand this-Wal-Mart has reduced       a b     i a l      H   m
its landfilling in California by 80 percent and is  i   m   s
ramping up recycling and reusing to the point  p  p
that waste is now a profit center instead of a cost.  E  Hm  a    a t       q
Families know it too: Artist Bea Johnson of   Fan       i
Mautn County, California has presided over                                   and
Purchst' not enoh B torc
Johnson ~ ~    ~    ~     IF sas1Yu2aet1rfs!


PRIVAT
By Amandine Dukhan, Agence Française de Développement;
Christel Bourbon-Séclet &- Nathalie Yannic, Proparco
22 1IFC.ORG/HANDSHAKE


PPPs
When it comes to managing waste in developing countries, the private
sector can contribute technical skills, organizational capabilities, and flexibil-
Sty Yet private sector involvement alone will not solve all the problems. The
public sector while far from abrogating its responsibilities, has to strengthen
regulations and step up project management. It is also vital to improve the
financing of waste management services and to ensure a better-structured
regulatory framework.
Solid waste management is often regarded as  THE NEED      FOR INTEGRATED
the most local of all public utilities. Since the
first steps were taken to decentralize this service  MANAGEMENT
in developing countries, responsibility for it is  Reducing the quantity and noxiousness of waste
increasingly falling to municipalities, as it has  at the source, introducing separate collection
been the case in Europe for decades. Frequently  and sorting procedures to encourage recycling
subject to financial, material, and work force  and reuse, organizing waste transportation,
constraints, municipalities try to manage just  and investing in recycling, energy and organic
the most urgent needs, such as removing waste  recovery technologies are the fundamentals of
from cities to keep them clean. Many focus their  sustainable waste management. All the links in
efforts on developing basic cleaning services-  this chain are interdependent: they follow exactly
street sweeping, waste collection, gutter mainte-  the same path and address the same issues,
nance, and running landfills-with mixed results  regardless of region. An integrated system based
and high costs. In some cities in Sub-Saharan  on prevention-sorting-recycling-recovery-reuse is
Africa, operating costs can account for 30 to 50  therefore key to reducing waste production over
percent of a municipality's total annual budget. the long term and reducing the amount of waste
Yet this approach, based on collecting and stor-  deposited in landfills.
ing waste in open landfills, falls short of manag-
ing municipal solid waste on a long-term basis.
1FC 1 23


However, the public sector's efforts to develop  a build-operate-transfer contract are the most
waste management toward an integrated system  common; these involve a system of direct pay-
are hindered by the difficulties associated with  ment to the private operator by public authori-
investing in and maintaining facilities, the lack  ties, based on a management cost per metric
of business competencies in certain links of the  tonne. This rate not only covers operating costs
chain, and the ongoing absence of sustainable  but also, in some cases, investment in initial
financing sources.                          infrastructure and upgrading works.
As it is difficult for municipalities in developing
REDEFINING       THE ROLES                  countries to payprivate operators enough to
The private sector can correct the management  cover the cost of all waste management services,
failures encountered in a state-run system and  the central government often has to provide
provide the technical skills often lacking in the  additional funding. The private network is there-
public sector. In best-case scenarios, privateorganized
pubector. Inv buledsta scnaropriate  by a very active informal service, and the rest of
operators have qualified staff and appropriate  tewsemngmn       hi,weeoecnfn
production resources, while still being flexibly  globa c anasell as local oears,
organizea glbuildorperat-trnsa                    e l  on a are at most
some of whom are from the informal sector.
A COMPLEX CONNECTION
To attc    p    t   i                      But private sector management of all or part of
local authoritie   n      to e             the system does not solve the problems entirely,
h  a s i    f         t           and public authorities have to step up their
involvement as regulators and project managers
even further. Perhaps more so than for other
bsed on coo S  S                           public utilities, waste management requires
loca stakehld                              coordination among numerous stakeholders at
different stages in the process, and calls for a
broad range of skills and know-how. Implement-
ing a proper waste management policy implies a
Since costs cannot be fully covered by the fees  strong involvement from the public authorities
collected from users, calling on specific service  running the service. This includes controlling
providers (for collecting waste, operating a waste  costs, planning investment, negotiating contracts
transfer plant, or technical landfill center) is  with service providers, educating users, establish-
more widespread than the appointment of a   ing and enforcing regulations, and involving
large-scale private operator covering the entire  producers and consumers.
sector. Public-private partnerships involving
241I IFC.ORG/HANDSHAKE


The project must take into account the town's    Due to the lack of transparent systems for pay-
socio-spatial structure, the type of waste       ing local taxes to municipalities on an ongoing
involved, the resources available, the institu-  basis, losses inevitably occur. Waste manage-
tional setting, and whether those involved are   ment services in the developing countries are
from the formal or informal sector. For a public  therefore subject to the problem of mobilizing
waste management policy to be sustainable, a     tax resources in towns and cities. Consequently,
pragmatic, customized, and progressive approach  the income generated is insufficient to cover the
is essential. Such an approach is preferable to  costs of setting up an integrated waste manage-
applying high standards from the beginning.      ment system.
More generally, a clearly defined regulatory
framework enabling companies to compete
equitably is a prerequisite for effective private
sector involvement.
Significantly, solid waste management services in    m       p   i   t
both developed and developing countries rarely       a p               cusomzedan
reach financial equilibrium. Local authorities              s        approch 'i
in the developing countries often have to resort     e     ni
to three different funding sources-household
waste collection fees paid by the user, a house-
hold waste collection tax, and general budget
contributions-in an attempt to cover sector      As sketched in this scenario, mobilizing the
costs. Waste collection fees are paid directly by  private sector, skilled as it is, does not in itself
each household and usually apply to collection   constitute a solution for better waste manage-
only. The amount is kept low, to be manageable   ment. To be effective and appropriate, a waste
for households, and is typically paid to private or  management system must be accompanied by
informal waste collection operators. These fees  better financing mechanisms, increased technical
are generally not enough to cover the system's   and institutional capabilities on the part of pub-
upstream costs.                                 lic authorities, and a well-structured regulatory
Local authorities therefore try to obtain addi-  framework. In the absence of such an environ-
tional financing via a household waste collection  ment, private sector involvement-even if it can
tax, which is used to finance other aspects of   temporarily fill public management gaps-may
the service. This tax is usually linked to a land  still not be enough to achieve an integrated and
tax on developed properties. In the case of local  sustainable waste management system. M
authorities in the developing countries, the base
of this tax is reduced, and payment rates are low.  This article was adapted withpermissionfrom Proparcos
Furthermore, the tax is collected by the state and  magazine, Private Sector & Development (Issue 15,
channelled  through  the  treasury.                              of t  s    n    t   s    p
1FC 1 25


COMPASs
DECADE OF
therise-   th  PPP
lim,I IJIIIIIIIIIMIIIIJI M
ifilli
1I1 1  #H l


By Muhabbat Mahmudova, Infrastructure Journal
Governments that are concerned about the state  ment, recycling, and energy from waste (EFW)
of landfills and the environmental impact of  projects.
waste typically get a crash course in the waste
management sector, and especially in the impor-  A  LOOK BACK
tance of introducing sustainable practices to the
system. More and more, government officials'
education includes lessons on how to implement  private companies to construct, operate, and
a public-private partnership (PPP).          maintain waste facilities. PPP transactions have
As PPPs become accepted practice, investments
in the waste sector have grown as governments    t   e  vlm E  nrated bete d
attract private capital and technical expertise  and 21 was fom pbirot    ed        as
for the construction, operation, and manage-     concssin:a otal o   eals the as
ment of waste projects. Most commonly, these
prects.t  173blin
projects include waste incineration, waste treat-a
teIatmn and EFW facilit
MotoIh         olm    eeaedbten20


Over the past decade, the countries
EUROPE'S INVESTMENTS IN THE WASTE SECTOR, 2005-2013
with most active PPP market have been
:the U.K., Spain, Singapore, Australia,
:Poland, Italy, and France. In 2013
$ Total value in millions  $ Total debt in millions   alone, the U.K. saw nine deals reach-
:ing financing close in the waste sector,
:including the construction of waste
2005          297.3/255.3                             treatment plants and EFW facilities,
2006    $              1293.93/1218.33                with a total investment of $3 billion.
:On page nine we can see the volume
2007    $$$$$$           $$$$$3315.5/2563.86          of global investments that financed
2008                            2747.34/2230.99      waste projects (PPP and other) from
2008 $ $  $  $ $$ $2005 to November 2013. In total, there
2009    $ $    $ $   1353.7/1035.47                   were 105 projects with a total value of
:around $22.5 billion.
2010    $   $   $ $   $ $      3129.7/1156.21
2011    $ $ $ $ $ $ $ $        3093.45/1809.22        EBB AND       FLOW
2012                 1589.63/634.83                   The graph shows a wide fluctuation in
2013              160.8/173.24waste market financing during the past
2013                           2160.08/1703.24
$  ~ $' $i $: decade. The onset of the global financial
Soure: Ifrasrucure ournl             :crisis produced a steep fall after 2007.
Source:                                               It picked up again in 2010 when the
:global sentiment temporarily improved.
.......................................................: Then it dropped again due to the pro-
tracted economic slowdown.
Although the volume in 2009 dipped
at the peak of the financial crisis, the
Because of Europe's long-term          political      U.K. managed to close five waste PPP
and regulatory stability there has been               projects that year, including along-
a clear legislative strategy for waste                delayed $1.1 billion Greater Manchester
SWaste P        project. The largest privately
infrastructure.                                       financed deals over the same period
Swere all U.K. projects: Staffordshire
28 E IFCORGAANDSHAKE


Waste PFI, Western Riverside EFW, and            GEOGRAPHY            IS DESTINY
Greater Manchester Waste PFI valued over
$1 billion each.Euoehsbethmotpointrgnfr
$1 bilion ach.private capital investments in the waste sector.
In 2013, a number of projects were able to       Because of its long-term political and regulatory
secure financing despite the difficult economic  stability, there has been a clear legislative strategy
conditions remaining in many countries. Look-    for waste infrastructure, as well as mechanisms
ing ahead to the next year, however, it appears  in place-such as PPP structures-to support
that deals that require substantial financial com-  private capital investments.
mitment may face delays.
GLOBAL INVESTMENTS IN THE WASTE SECTOR, BY SOURCES OF FUNDING (2005-2013)
$ billions                                                                           Deal count
4.0                                            paeF/government support            20
m Equity
3.5 .mm Debt                                                                        18
-0- Deal count
-e16
3.0                                                                                 1
-14
2.5  -
-12
2.0                                                                                10
-8
1.5
6
1.0
-4
0.5                                                                                2
0
0
2005     2006    2007     2008     2009    2010     2011     2012     2013
Source: Infrastructure Journal
IFC 129


Continuing this trend, the U.K. has a consider-  sector. These countries are especially important
able pipeline of waste projects that it hopes to  for the sector because they have fast-growing
develop in order to meet environmental targets  populations and labor mobility. These two fac-
set by the European Union by 2020.           tors prompt many to move from rural areas into
Looking ahead globally, many countries in Asia,  cities. This in turn creates increased demand for
LooingAeia n     h   ufrgo     aebe         infrastructure assets-including waste treatment
Latin America, and the Gulf region have been
targeting private capital investments in the waste  and management-and the cycle of growth
continues. ala
GLOBAL INVESTMENTS IN THE WASTE                                L
SECTOR, BY COUNTRY (2005-2013)                                               .z
cotiue. E
*                                                                  00
U :4deas  $5 69r//o
Ireland: 1 deal-$424 miiorin2                .
Si ga O e  ea S $385  m illonb               l io
oo                                r
.                                                      mm Debt as a proportion of total investment
**AII nurnbers rounded.                                    Source: Infrastructure Journal
30 IFC.ORG/HANDSHAKE


PPPs
E-WASTE
EAAi PA
WHAT'S IN A CELL PHONE?
....                                              .... ... .... ... .....0.
40    m  illion-
:    Other 4%       :
metric tons of electronic waste..ila,ntmy,br-
are produced each year globally.                               lium, aluminum, etc.)
.                                                 . . . . . . . . . . . . . . . . . . . . . .
Ep                         xy 9%..------0----
Ceramics 16% Fame
Only 13% of this                                   retardants 1 %
electronic waste             Metals 21%          ..................Elcrni.at.A.tI
gets recycled. Most         (zinc, iron, copper,
of it is burned and silver, nickel)
dismantled infor-
mally in developing
countries with               Plastics 29%
adverse effects            (ABS, PC, silicon, PPS)
on health and the
environment.
Sources: Nokia, Population Reference Bureau//LO
WAC     0*    *UE:FOLWN
THE ~   ~      ~      ~      F  31I  X  -AT


TRASH to
)By Jeff Delmon,
SWorld Bank
Our modern world, with its convenience and  rglt.Goa xeinepit otebnft
consumption, creates a whole lot of trash that in  o nertdmngmn n  Ps
turn suffocates cities and undermines economies.
Managing trash is a municipal nightmare. But it  A  ORDSOA
should be a banker's dream, right? Demand will  Bttesldwsesco s'  aua i o
only grow, and the problem needs a solution- patesi,asomohrscosae.Fma
without it the entire economy suffers.   cmeca rfnnilprpcie otrcv
But if there's a simple solution, it has eluded us  eyfo  oshlsi h omo espi o
all. TIhe management of solid waste would seem trscoltinsgerayvrypr.Idtil
to lend benefit from the structuring, efficiencies,  wsecleto  a  emr urtv,btrrl
financing, and latest technology that can come coesot.Sairylnflsrexpsv,
with public-private partnerships (PPPs). Let's anrreButheisopweetedsoalf
examine the options at our disposal.soiwatiscrflypnedHrereom
OUT OF SIGHT, OUT OF MIND
Poorly managed waste spreads disease, con-   patc,crbad n  opsigi    ag
taminates water resources, increases the cost of inutynmaydvlpdcnresbtue
potable water, increases flooding, pollutes the  o eyldmtrasi fe  o  eldvlpd
air, and repulses tourists. But municipalities have  I  azna si  aycutis hp ar
neither the money nor the skills to manage solid  cnanr ulo sdpatc akt  hn o
waste well. In Sub-Saharan Africa, for example, reylnsicthloamrktsisufin.
municipal waste management can amount to CopsigOracwstcnbeudtor-
30 to 50 percent of a municipality's total annual  aecmott  erymtaegspouto
budget.anbeueasiptfofetlzr
The developing world tends to rely on informal EnryPoptydidadstewsecn
waste pickers, who comprise 5 percent of urban
jobs in developing economies. But these small  sm nutilpoess npriua oe
scale~ ~ ~ ~ ~~~o iouin r nfiin n  ifcl o gneratedn angement nd PPPs.gtei
pn a       assmOte/etrDr.FoE
comrilo4iaca prpcie otrcv
ery romhoushols i thefor offeespai fo
coes                            ot. aiar   adflsar  xenie
plst, carbord an 4opstn isalag
inutr nmaydveoedcutre,bu                            s
ofrcce                aeil sofe   o   eldvlpd
In Tanania, s maycuties hp ar
cotier ulofue4latc bc oChn o
reylnAic                        telclm   re iAnufcet


M*NEY TALK
parent companies to fulfill their international Cabni nccnbecesdthogte
obligation to reduce their carbon footprint.  rdcino  ehn  a,gnrto  frnw
Tfhese energy sources may also qualify as renew- abelctityanthrduioofabnfo-
able energy, and therefore may provide access to  pitb  fstigohrtemlha eeain
carbon credits, preferential tariffs for electricity  Ptnilana abnfnnei u-aaa
generated, or other subsidies designed to encour- Arc  a  mutt rud$.  ilo  e
age green activities.                  mlinpol o adilgsrcvr,$.
Sanitary landfill: Where the above do not  mlinfrcmotn,ad$.       ilo  o
achieve full disposal of waste, the balance needs reyln.Btvnthsamusaelsshn
to be delivered to a sanitary landfill, to limit its 10pretowaemngmntcs.
impact on people and the environment.Eeryesfopwrgnrad,rclric
Some developing economies might also be able  vlepoie oklso  te iheeg
to replicate the approach in India, which has
succeeded in issuing a few "no gate fee" PPPs for i
solid waste. Here, the private sector is required  to  ftewse
to provide integrated solid waste management
services with no fees for disposal, maintaining plsisadcmotfrpuhseblclfrs
a clear incentive on the private sector to avoid  t rnfr  noslal od,o oepr h
dumping and monetize waste to the extentmaeilwhrteycnbusdfetvl.
possible.                              Gtfe o     upn     fwseaeuulycn
TURNING TRASH INTO TREASURE            Hg   aefe a euti ieso        fwset
It's possible to turn trash to treasure with the inomldpste.`hmucpatyaylo
revenue opportunities available in solid waste. beapocrdtis,ldngnvtrsoakfr
User fees for collection of solid waste are usually goenntuanesorthreciyrgt.
kept artificially low. Collection can be facilitated Ititepngopckuthtrsonpee
by combining waste management bills with atatm.Btbaprchnteisuinn
electricity bills (as in Mombasa) or water bills (asinertdmnr,evuegeaiocngt
in Addis Ababa). Municipal taxes can provide a clstootrevryorvnpoidapof.
solid revenue stream, but are usually spread over  S  hl h ouini edmsml,epcal
a small part of the total population.   we tcmst      atr ffnne Psd
Taxes on importers and producers of waste. For poiebnft hnapidt oi   at
examples, see the tax being proposed in Kenya magentM
on imported tires, or in Togo, where a tax on
industries, hotels, and other large enterprises
shiedutio ofe metan gas,e geeato oarg renewrsofwate
able edo
prn0yofstigohr hra*et eeain
10 pecn-fwsemaaeetcss
whloas bekngdwnte hmca0omoi
tino0hewse
Reyligfes icudn tevau o ecce
plsisadcmot0o     ucaeb oa im
totasom noslalegos rtoepr h
materials where theyI ca beueffciey
Gae ee fr umin ofwseaeuulycn
strained0 bymniia bugt an lo usrfes
Hihgaefescnreut ndveso ofwset
infomal  umpsite. T e  muiciplit  mayals
be apoo creit isk,leaing inetr0t so
govrnen gurneso0terscrtihs
whni cmstomter ffiac,IPsd
prvd                              eeiIwe     ple t oi    at
*  -management.
shfstetxbre to lag prduer0f ase
I-IFC |033


Cleå
Fifteen years of strong economic growth in Brazil has increased citizens'
consumption of goods along with their disposable income. According to
recent data, Brazil is the largest world market for personal care products, and
the third largest world market for electronic products, pet care, and home
cleaning products. With at least 60 percent of the population now considered
middle class, consumption will only increase-and along with it, waste.
By Carlos Silva Filho, -Brazifian Association of Waste
Management Comp n~s
Photo C Wikipcdia,, Chamber of Deputics of Brazil


PPPs
Brazil's economic growth is a popular story, and  (no. 12.305/2010) was passed to establish a
for good reason: the GDP per capita variation  series of new procedures for waste management.
from 2003 to 2012 in the country was a remark-  The law requires waste management companies
able 20.8 percent. But if there's a downside to  to develop integrated waste plans; introduces the
this good news, it's that the country's waste  waste hierarchy principle; requires some sectors
generation, linked to this growth, is also on the  to implement a producer responsibility system;
rise. The Brazilian Association of Waste Manage-  and creates many other important incentives
ment Companies (ABRELPE) calculates that       and directives.
from 2003 to 2012, Brazil generated almost 63  Once implemented, this law will:
million tons of municipal solid waste (MSW)-
a 21 percent growth over the previous 10-year
period. During the same period, the population  * promote economic development within
growth was 9.65 percent-waste generation         the industry by stimulating new businesses
increased two times more than the population.    related to recycling, recovery, and treatment
Waste collection procedures have not yet caught  activities;
up with this drastic growth. Almost 10 percent   improve environmental and public health by
of the MSW generated in Brazil is not even       the closure of open dumps and inadequate
collected. Almost half of the MSW is going to    disposal sites by August 2014;
inadequate disposal sites like opens dumps and  * promote social inclusion; and
uncontrolled landfills, and only 3 percent is
recycled effectively.
To rectify this, ABRELPE estimates that Brazil   greenhouse-gas emissions.
needs a $2.75 billion investment in modern solid  With this law, Brazil has an opportunity to
waste management. This investment need gener-  achieve new waste management standards
ates significant business opportunities if federal,  through systems, technologies, and practices
state, and municipal governments create the    tailored to local characteristics and demands.
right environment to attract the private sector.  This leap forward may ultimately break the
existing paradigm, moving a linear waste man-
A  LEGISLATIVE REMEDY                          agement system to a cyclical system featuring
The first steps toward this solution have already  recycling, reuse, and recovery.
been taken. In 2010, the National Waste Law
-                                                                     I1FC 1 35


PPPs
3FOR FC.ERG/HANRAHAKE
ByMc4ulyd ataaKrta SI


Ukraine, like other countries of the former Soviet Union, inherited
highly inefficient and polluting solid waste management systems upon
independence in 1991. The country has been struggling with its garbage
ever since. According to a recent World Bank study, Ukraine generates
17 million tonnes of waste per year. Its waste recovery rate is alarmingly
low-about 5 percent. The rest ends up in landfills or illegal dumps near
cities, posing health and environmental risks to the public and contribut-
ing to harmful greenhouse-gas emissions. Regardless of future govern-
ment actions and potential changes in consumer behavior, Ukraine
needs to significantly expand its landfill capacity.
The Ukrainian government has taken impor-
tant steps to foster a legislative environment  Vnyta  iyo  7,0    nwsenUrie
that will enable the processing and recycling plntodcmisnisextngadflad
of waste. Encouragingly, municipalities have
recognized lately that tapping landfill gas for
power generation is an effective component of a motycnisofeha     -agehuegs
comprehensive solid waste management system.
The USAID Public-Private Partnership Develop-  vAlU E IN VI N NY
ment Program (P3DP) is in the forefront of this
movement, helping two Ukrainian municipali-  p ocd  sion ts estiani and
ties develop biogas technology as part of their  most onsts ofiethne-acenhoues
respective waste management systems through the   20pt    he impact feasiThlity's
public-private partnerships (PPPs).       ies and expects to be ready to issue a competitive
These partnerships are a relatively new tool in  tender in 2014. An independent study showed
the government's arsenal for improving infra-  that the project could attract up to $3 million in
structure and delivering public services. The  private sector investment, generate $5 million in
apprach rodces nery an redcesenvion- tax revenues, and reduce gas emissions of nearly
approach produces energy and reduces environ-gy
mental impact while potentially freeing up scarce  460,000 tonnes of CO2
budget funds that can be applied elsewhere.
VFC AV37


The idea is catching on. After visiting the site in  municipalities do not have the necessary
Vinnytsia, the town of Ivano-Frankivsk pushed  funds to address infrastructure needs.
for a similar PPP in its region. A feasibility study   Greater energy independence. Ukraine
is underway and is expected to be completed in  imports most of its natural gas from Russia,
mid-2014.                                     making it vulnerable to geopolitical pressure.
__________________________________ Using landfill gas will reduce the need for
imports.
With solid waste management                   Opportunitiesfor small business. Local
a top priority for the Ukrainian              Ukrainian businesses will have greater
government, this is a good time               opportunities to participate in the solid
to demonstrate how PPPs cansector.
to dmonsratehow  PPs  an         *Reduced greenhouse-gas emissions. Ukraine
improve the collection, processing,           is a leading contributor to carbon emissions
and disposal of solid waste.                  on a per capita basis. A study by Biogas, an
engineering firm, estimates Ukraine could
save the equivalent of 6 million tonnes of
THE DEMONSTRATION EFFECT                       CO2 annually by using landfill gas.
With solid waste management a top priority
With approximately 100 landfills in Ukraine  for the Ukrainian government, this is a good
suitable for extraction and utilization of landfill  time to demonstrate how PPPs can improve the
gas, these encouraging steps forward could be  collection, processing, and disposal of solid waste
replicated across the country. If this becomes  throughout the country. PPPs bring private
an ingrained aspect of Ukraine's solid waste  sector investment for infrastructure and public
management system, landfill gas utilization  services, as well as new technologies and mana-
will ultimately contribute to more efficient and  gerial skills that play a major role in increasing
environmentally friendly use of the countrys  energy efficiency and mitigating climate change.
resources.                                  Landfill gas PPPs could lead the way, forming an
Other benefits include:                    integral component of a sustainable solid waste
* Lower energy costs. The high cost of energy  management program.
in Ukraine is a drain on the economy and
local budgets. Business is uncompetitive and
38 1 IFC.ORG/HANDSHAKE


0.                               . .  .  .  .  .   
AGRICULTURAL WASTE AS A BIOFUEL
Cities and industry aren't the only source of waste in Ukraine. The countr' agicultural
sector, which produces over 50 million tons of grain annually, generates huge mounts of
straw as a by-product. When compressed into pellets, it burns at temnperatures high enough
to substitute for natural gas or coal to provide heating.
In Malyn, a town of 27,000 in Ukraine's Zhytomyr Region, USAllD is alvising city oticials
on a PPP to heat schools using straw pellets as an alternative, reneiwable biofael. The PPP
will reduce costs, enable the schools to operate at warmer temperatures, and prolvidle local
producers of pellets with a new market.
Furthermore, heating with agricultural waste doesn't contribute to greenhouse-gas enmssions
as the carbon released by burning equals the carbon absorbed by crops during the groming
season. The PPP is expected to go to tender in 2014.
0          0                0     *Z


CONSENSL O
By Adele Paris, IFCo
INDIA'S NEWEST PPP FOR WASTE COLLECTION
INCLUDES COMMUNITY OUTREACH
In the Indian state of Odisha, a new PPP  The municipal solid waste management system
with a private operator improved waste  in Berhampur, a city of 350,000 people in the
collection and disposal, raising the  Indian state of Odisha, suffers from a lack of
quality of life for the residents of one  investment and inadequate staffing and manage-
large city. A targeted, well-developed  ment. In addition, like many other smaller cities
in India, its solid waste management system is
outreach program was critical to the  not in compliance with national regulations.
project's success and is now being used  Door-to-door collection is provided only in
as a model throughout the state. about half of the city, where roads are wider.
40 1 IFC.ORG/HANDSHAKE


PPPs
Households from the economically weaker         typically come from the sale of by-products
section, living in other sectors where roads are  (recyclables, compost, refuse-derived fuel, and
narrower, deposit their waste at collection points,  power, depending on the optimal treatment
often on the side of the road. It is then picked  solution for the city).
up by municipal workers and small private       But in India, the sale of by-products, mostly
operators, and transported to a dumpsite on the  recyclables and compost, is insufficient to
outskirts of the city. What is not collected by  recover the investment made in the treatment
them or by street sweepers continues its journey  and disposal segment, let alone the collection
in the drains. Citizens are exposed to health risks  part. Therefore the municipality must pay a
resulting from pollution, water contamination,  tipping fee" to bridge this gap. The real struggle
and untreated waste.                            is to set the tipping fee to a level low enough that
To solve this problem, Odisha's Department of   the municipality can afford it, and high enough
Housing and Urban Development and the Ber-     that the investor finds the project profitable.
hampur Municipal Corporation turned to IFC      In this case, what the municipality could afford
to help structure an affordable PPP transaction  was not enough. After analysis, IFC proposed
and attract a private operator. The goal was to  that the state contribute to financing the initial
improve the collection, transportation, treat-  investment for the construction of the treatment
ment, and disposal of waste and raise the quality  and disposal facilities through the provision of a
of life for city residents. An extensive outreach  grant and a concessional loan. These instruments
program, conceived and deployed to reach        are provided by the Odisha Urban Infrastructure
citizens from all areas of the city, helped ensure  Development Fund (OUIDF), a specialized
that the goals and mission of the new system   fund of the Housing and Urban Development
were shared widely.                             Department of the state of Odisha, financed by
KfW, the German government-owned develop-
TALKING       "TIPPING       FEES"              mentbank.
In most places in India, the municipality covers  For the tender process, the tipping fee was fixed
most of the costs related to management of      at an affordable level for the municipality of
municipal waste. There is little to no financial  about $21 per tonne. The portion of
contribution from users. As a result, waste     sional loan offered by OUIDF was fixed at 25
management is a cost center on the municipal-   percent of the initial project cost. The project
ity's budget. A private operator taking over the  was bid out on the basis of the amount of grant
management of the waste system will look for   required by the private sector to make the proj-
reliable revenue sources to recover the costs of  ect viable, with a cap at 25 percent of the initial
building, equipping, and operating the waste    project costs.
collection, transport, treatment, and disposal  IFC also recommended that the municipality
in an adequate landfill. These revenue sources  start building consensus among residents regard-
1FC 1 41


ing the beneficiaries' willingness to pay for the  activities proposed through its life cycle and
significant improvements outlined under the      the technological interventions.
project. In the future, this will help the munici-   Employees of the municipality. No city
pality recover some of the expenses toward the   employee shall be retrenched due to private
tipping fee.                                     sector participation. The municipality will
consult with the sanitation employees and
SPREADING         THE WORD                       workers to assess potential redeployment
Officials from Berhampur, along with IFC,        opportunities so that the workload is opti-
understood early on that successful implementa-  mized and there is seamless integration of
tion of the project depended on the municipal-   operations between the municipality and
ity's ability to raise awareness of its objectives,  the PPP contractor.
benefits, and risks. The detailed outreach initia-   Workers in the informal sector. Programs
tive that emerged alongside the deal introduces  targeted at rag pickers and other informal
the project's benefits to city residents, employees  recyclers in the system will educate them
of the sector, and others who are impacted.      about their potential reintegration in the
"I am convinced that the stakeholders' engage-    new system.
ment, consultation, and communication strategy,  * Government bodies. Internal coordination
created and implemented with IFC's support,      among the multiple governmental agencies
will effectively help Berhampur Municipal        involved across the proposed transaction
Corporation," says Dr. Ajit Kumar Mishra,        structure is vital.
Municipal Commissioner of Berhampur. "The      e Employees of existingprivate contractors.
project has made Berhampur a statewide role      While contracts with these existing private
model by addressing the specific concerns of all  contractors will be terminated, the private
the stakeholders for a clean and better city."   concessionaire will need to continue to
To recognize the needs of each group and          employ them.
achieve consensus among all parties, the out-    NGOs working in the social and envi-
reach targets:                                   ronmental sector. These groups also need
* Beneficiaries of the project. The municipal-   to be consulted with and kept abreast of
ity is undertaking awareness drives on the    developments.
benefits of the proposed system to encourage
users to adapt their current waste disposal  "A  CLEANER      BERHAMPUR"
practices to make the city clean.
pracice tomak thecit clan.The winning bidder, a consortium led by UPL
* Communities living close to new and old     Environmental Engineers Limited, is a large
sites. This involves informing communities  Indian environmental engineering construc-
near the proposed new site about the project  tion firm with 15 years of experience in solid
and hazardous waste management, wastewater
42 1 IFC.ORGMHANDSHAKE


treatment, recycling, and other environ-
mental projects.
The concession agreement was signed
on August 30, 2013 and collection is
expected to begin in the spring of 2014.
Expected results include:
* Over 350,000 residents, one-third
of whom live in low-income areas of
Berhampur, will benefit from daily
door-to-door waste pickup services
without increasing costs to the
municipality.
* Environmental and health risks for
the city's residents will be reduced.
* The private operator will construct
and manage a composting facility
with a capacity of 150 tonnes per
day.
* The project will attract total private
sector investments of $10.3 million.
* There is high potential for replica-
tion in other Indian municipalities;
bid documents developed under this      g
project are being used for two other
projects in Odisha.
"The citizens of Berhampur are eager
to have a clean and hygienic city,"
says Berhampur's Mayor, K. Madhabi.
"We are committed to efficient delivery
of basic public services in our city. This
PPP model is the most affordable solu-
tion to deliver our vision for a cleaner
Berhampur."                                t     a   onrb  of the  m FDE
1FC 43


secause of＇細jma/／旬。中rln丸a月EFWp/a nt臼n Integrate Into
i勿jufrou〞d〞中訪巧右FW戶／a ntjn駟ltte/a u, Au，加b waj
de、叮ned by orch;tec鉉tO白／end，〞則th山e re;t of山e town&
0〞d hajl佔elfbecomeatourjst由jtjnatlon
巒分浴“緝鹹輪“滷州臼由曲亂妒
斗曆盔貓調口口口口口口口口留纏才，頗蘊
d口‘瀾總貓開口口口口口口口口弋×、〕馴·
,&．〞一〔：
:.7k計卜．：二：
二州；.，一，. .oj二、一
頸刃他贓～人魚bg月口撇一馴
奮開口個開留廈口h‘一d口『口口奮亂口口〕口膩甲間口■■■：呂氈。
By jam6 D.Ml&che右en一’
＇分
齋，·“


ENERGY FROM WASTE
The debate over creating energy from waste (EFW) is as heated as the process
of creating energy itself. Although EFW is already a proven, successful technol-
ogy in some developed countries and select emerging markets (such as China),
many developing markets have not yet adopted the model and are weighing
carefully the pros and cons. EFW merits close examination, taking into consid-
eration the geography, population, and economies of the locations that need
waste sector services the most.
DEFINING OUR TERMS
....................................................................................................................
Energy from waste (EFW): The process of    applied to municipal waste treatment-including
producing energy in the form of electricity or  pyrolysis, gasification, and plasma gasification.
heat from the thermal breakdown of waste   Other Conversion Technologies: Refers to
through any thermal conversion technology  anaerobic digestion (AD) of organic municipal
or combination of thermal technologies.    waste to generate biogas after processing/
Conventional EFW: Refers to grate-fired    separation from recyclables and inerts or
or fluidized bed combustion of waste.      landfill gas-to-energy, or other technologies
Advanced Thermal Conversion Technology:    applied to waste to extract energy.
Refers to non-combustion technologies recently
Photo (D Stcfan Baudy, Vicuna Hundcrtwasscr, Austria


For EFW to be worthy of consideration in         There is evidence of end cost recovery for
emerging markets, many of the following          waste services. Revenues from tipping fees to
conditions should exist:                         support electricity tariffs can more readily be
Land and transport infrastructure is con-        achieved when constituents pay a fee, however
strained.small, for waste services received. This allows
centers as they require little land and lower
waste transport costs. This is helpful when      upon, which would not otherwise exist.
large land sites for landfills are not available  There is a large urban center with a growing
near urban centers, land is expensive, and       population and GDP Megacities or very large
when road infrastructure is constrained for      cities, particularly in middle income countries,
truck traffic.                                   often have many of the characteristics that make
Electricity tariffs or energy costs are high in  EFW   an attractive option, especially if they can
the grid or for end users. Electricity tariffs   take part in an integrated solid waste manage-
are high in the grid or for large end users who  ment plan including recycling, reuse, and waste
could contract for the electricity or steam. The  reduction.
site can also be located close to energy demand,  The government considering EFW is a small
co-located with an end user for "behind the      island nation. Island nations are also a good
fence" (i.e., on-site) co-generation or district  fit for EFW plants because land is constrained,
heating/cooling applications.                    economies are driven by tourism, and there are
high electricity costs.
When several of the conditions above are met,
EFW     will not be the answer                   EFW   might be a good solution for local govern-
ments, electric utilities, and constituents, as
for many emerging             markets.           well as for waste companies. In the "win/win '
scenario, utilities and governments can get base
load renewable electricity sources, while entities
There are attractive electricity tariffs for EFW  responsible for solid waste get an environmen-
and/or tipping fees exist. Many EFW  projects    tally sustainable disposal solution financed by
in emerging markets rely predominantly on elec-  the private sector. EFW  services can favorably
tricity revenues. Projects become more viable in  impact other sectors and elements of urban
markets where there is a renewable feed-in tariff  infrastructure, such as tourism, property values,
or renewable portfolio standard for which EFW    transport, and water and air quality. EFW can
is eligible and/or there is a practice of paying for  also contribute to the reduction of greenhouse-
waste disposal or "tipping fees."                gas (GHG) emissions (see box at right).
461I IFC.ORG/HANDSHAKE


Furthermore, adoption of the EFW
concept can drive policies and regula-
tory regimes that improve solid waste
management and enforcement, give
opportunities to improve cost recov-        A P                   A
ery, and improve grid diversity in the
electricity sector.
The shift toward requiring constituents     A        of t   E   c    *.       . -
to pay for improved service can also          i       A        E    f 6          C 2
pave the way for public-private part-       as p      of     s   ps
nerships. When constituents pay for         a        n  r
services, another revenue source opens
up that can be used to manage risk,         M    o th        *   ar f    boei
and this sound fiscal municipal policy      (       s       W -            wat
supports a private sector transaction.      f         *****    (man   -    s
A CHALLENGING
PROPOSITION                                 E   f
But there are significant challenges that       *                   s
may prevent EFW from achieving its            t      66 hav   b       g r     f
potential in emerging markets.                              w       e t
High cost: Most notably, from a utility's        66-
point of view, EFW may not be the least     *     It   - --       t    w     e
cost base load option, and not the least      o         6        b 66 6      po66
cost renewable option. From the per-           6  t and
spective of public solid waste manage-      *    F    a   non-        m       can
ment authorities, EFW may not be the           be r        a   r               *l
least cost waste disposal option, either.     e      t *             r   mater4s.
Difficult to site: EFW is difficult to site
for both utilities and public solid waste
authorities because residents tend to
reflexively reject the idea of waste pro-
cessing and disposal taking place in their
IFC 1 47


vicinity. This is also known as the NIMBY effect  ing EFW However, as environmental and social
("Not In My Backyard"). Once local citizens are  considerations become increasingly important
educated about EFW-understanding that the   for global financial institutions, countries can
footprint is small and low-impact, and that the  improve their access to finance by:
facility can be integrated architecturally with  * Satisfying stringent air and effluent
the surroundings-perceptions can potentially   emissions requirements;
change.                                        Showing evidence of community
engagement and acceptance; and
-Incorporating environmentally
The shift toward requir-                      sustainable practices, including
ing constituents to pay for                   sustainable ash disposal solutions.
improved service can pave                   PLAN FOR SUCCESS
the way for public-private                  A solid waste management plan that integrates
partnerships.                               the EFW facility, demonstrating that it is techni-
_______________________________  cally and financially the best solution for the
community, is one of the most effective ways
Landfill still needed: EFW does not eliminate  for a government to evaluate whether or not an
entirely the need for a sanitary landfill as part  EFW plant is the right fit for its community.
of the solid waste management plan. Landfills  When recycling, waste reduction, and re-use
are still needed to address ash disposal, non-  concepts also complement the model, and there
combustible waste streams, climate events (such  sea p at  a ng f       ad infrmal
as hurricanes), or extended facility outages.for the winning waste
Poor quantity and quality of waste: Smaller  strategy that so many developing economies
waste quantities (scale issues) and poor waste  are searching for.
quality (low calorific value and high organic and
moisture content) have also traditionally created
challenges for EFW in emerging markets. Tech-
nological advances, driven by emerging markets'
requirements, are producing new designs and
operating procedures better able to handle low
calorific value waste.
Limited access to finance: Access to finance can
be a concern in developing economies consider-
48 1 IFC.ORG/HANDSHAKE


ADVANCED THERMAL CONVERSION
TEC HNOLOGIES (ATCTs)
Many ATCTs have been in existence for a long time and suc-
cessfully applied to homogeneous, high heat content waste
streams. Howvever, they have only been recently applied
to municipal solid waste on a commercial scale-and with
mixed results. Successful technologies have been character-
ized by high capital and operating costs, requiring in turn
high tipping fees and electricity rates to cover costs.
Local governments in emerging markets are promised
strong results from ATCTs. But to most accurately evaluate
its potential, they should consider the following criteria:
• The potential partner has an existing facility in operation,
or uses a third party technology with a facility already
in operation, including upfront waste processing and
syngas treatment.
• The existing facility operates at a similar scale (wastek
throughput and output) to the project being planned
• The potential partner can provide operational and
performance data (Including emissions) for their existingmo
operations, demonstrating that the commercial facility-7.J
can operate off the same feedstock continuously for an
extended period.
• The syngas should be used as feedstock in the energy
conversion equipment (for example, reciprocating
engines, turbine, or boller) for an extended period.
• There are substantial performance guarantees from
the private operator.                                                 ål
• And finally, nothing substitutes visiting the existing
facility and talking to project stakeholders.
Photo C BASF-The C hemical C ompany sy ngas complex, Malaysi
*  0 --  -  -s   -     .00j
*~~~~. 0.A *-  M0I. ~.


A LEGAL LOOK
By Jonathan Brufal
6- Tom Gray
Wragge 6 Co LLP
Energy from waste (EFW) facilities are becom- leynafebywyotx.Iemrigakts
ing a popular solution in developed markets.  weewsecleto  ih o e ea
They answer the requirement for higher levels of  etbihdrsosblt ftelclatoiy
renewable energy while reducing landfill waste.  cranyo  at upyi  infcn ik
An established, market tested risk allocation Delorsadenrsedasuncofu-
structure and payment mechanism allows for  fcetwse ftemncplatoiycno
the successful construction and operation of prvdsuhctanyteyihr otetr
EFW plants by private sector participants.   it hs el,o  ilrfs otk nvlm
There is an interesting dynamic at play in   rs  ihu  iiu  amn urne
developing markets: ongoing urbanization is (rdcnthvauofheelfrteatoiy)
resulting in an ever-increasing need for energy  Poetcmaisi eeoe onre ose
and a growing volume of waste. Is EFW the
answer in these emerging economies as well? rikbyscinlagcomcalotat.
It's worth considering the following points from  Ti ol easlto o mrigmres
a legal perspective when reviewing potential bureisainolclcmpispodig
EFW projects in such markets.sufcetws,whhmaorayntba
LARGE COMMERCIAL CONTRACTS           denabeotm.
EFW plants rely on a constant supply of waste,  DPNAL  NRYOTU
either commercially generated or from the local Thsupyowatsoldntnybecsat
population. When originating from residents, it ansufcetbtloofaomsionht
is typically collected and delivered to the plant  alw o ibeeeg  rdcin h aoii
by the relevant municipal authority.   vleo  at ietyipcseeg upt
In countries where that municipal authority Whldelorsadenrsavgnrly
"1owns" and is responsible for the waste of its beoecmrtlewhtepojtcman
residents and has the requisite infrastructure,  tkn opsto iki salse  akt
it is possible to institute an efficient collection  (wn oalvlo etit eadn aoii
system necessary to supply the EFW plant. In  vle) h  ilnns od oi eeoe
thee  ass,th  athriy fnd  te  oleciwhe m rket wast  clklcinmgtno.e  ea
50 1 F.R/ADHK
esabise  repniblt  of th   loa utoiy
cetant ofwsespl0sa infcnik
Deeoesadlne0ne suac fsf
ficientwaste. I                         0th muicpa auhrtycno
prvd0uhcrtit,te            ite  o'  ne
into ths                -das or wil reus totknvlm
ris wihu0 iiu    amn urne
(reducng th vau fte elfrte uhrt)
Prjc0o                paisi   eelpdcutre0ose
wast                  vou e  (teeyofetigayspl
rik byscrn lag0omrilcnrcs
Ths oldb-asluin oreerig akes
bu  ele  gano  0oa  0o pne  producing
sufcetwst,wihmyormyntb0
depndbl otcme


LEGALEASE
Uncertainty surrounding composition will makeinerggmakt,bttsdvlpnts
developers reluctant to commit to any minimum  cuilt h ucs fEWpoet nsc
energy output-in direct conflict with the public jrsitos
sector objective to assure a reliable energy source.Astogruloyeninmtisfenbcd
GATE FEE ECONOMICS                   b oenetlo nr-ocnetlplce
Notwithstanding the relative lack of supply risk thtwnojcieofnrasgrnwbl
in developed markets, the income stream that enrypoutnadrdcigldfl.Ith
a EFW plant can deliver through the sale of U..inetvsypclyrrsntwofth
energy alone has not generally been considered aofaEWpntsicm.(hgteeelo
bankable proposition. Instead, developers usuallyreesnstofth,adh alofnrg
require the municipal authority to pay a "gate" threangoe-ih)
or "tipping" fee per tonne of waste the plant Hoer,telkihdofepcanghsmdl
accepts. Due to the importance of a consistent   i  mriEmresse ssi.I  eltrs
income stream, developers may require the thsmashttepyensruuewilb
authority to commit to providing a certainhihyngtaeadponilyoerufrth
tonnage of waste per month and make the   mncplatoiy ihhge aeadeeg
gate fee payable for that tonnage regardless fesrqidtomkuphenctvehrfal
of whether or not the authority can actually
deliver it.NE                             FRMW        K
In markets where waste collection is an estab-
lished (and taxable) function of municipal Apligtesabshdcnrtulmeln
authorities, those authorities are normally   dvlpn  akt slkl opoedfiut
willing to take this risk. But authorities inNetchogismhtbadnheops-
emerging markets may not be able to afford tinoaceabewsendnraethef-
the fees, nor be willing or able to increase   Ti ntr  a euti oe aefe n
local taxes for collection.          ralcto   fspl   ik
STRONG REGULATORY
ENVIRONMENTmaktpatclrythywntoservn
Strong regulatory and policy support is a neces-  tcnlg en  sd o h oeeal
sary condition for successful EFW plants. A furemnipaathiisindvlig
fast track planning system and an established  cutisaelkl ohv ogaatespl
and efficient process of obtaining approvals give  lvl n  a ihgt esadtk ik
developers and lenders the reassurance that they  wihaeuulycrflyngtae ewe
can move from conception to financial close in  teprist  aeEWaval pini
good  time. S chin emerging lmarkets, butbsits developmentkeis
A sri
bygoermeta or inr*gvrnetaolce
thtsuprtad neniiz FW-hi ulil
th0tinojetie0o                            ic0ain-enwal
energ prdcto anedcn ladil.Ih
U..,ineniestyiclyepesn                     t- fth
of a EF               0ln' inoe 0Tegaefeas
rersns w ith,adth aeofeeg
the reann onefifh)
Hoee,telklhoSfrpiaigti oe
ine           egn   akt  emssi  .I  eltr s
thsmen ha0h pyen0tucuewilb
hihyngtae an 0oenial onru0o h
municipa              auh riy  wit  hi h rg t 0ad e eg
fesrqie0omk                         pteicniesotal
NE              FAM0R
Appyn h0salsedcnrculmdli
deeoigmresi0ikl                 opoedfiut
Ne tehooge0igtbode h-cmoi
tinofacptbewat                             ndic0aete-fi
cinywthwihplnscn                    rdc   enry
Thsi unmyrsl i oe aefe n
relocto  ofspl 0ik
Ho                ee,ledr   r  cuiu.Ine  egn
maktspriclry,teywn t e0poe
techolog beng ued. or he freseabl
fuue*m                             ncpl0uhrtisi    evlpn
contie  ae iel  t  hvetogarnte  upl
leves ad py hghatefee-an tak rik
whc reuull aeulyngoitd0ewe
thepariesto ak EF  a  0ibeopini
emer0ngmarets
goodtim. Sch aregme s lkelyto e asen
3                                              IFC0|-51


COMPARING ENERGY FROM WASTE FACILITIES TO LANDFILLS
By Daniel Hoornweg, University of Ontario Institute of Technology &'
Perinaz Bhada-Tata, Consultant
There is no ideal way to dispose of waste. All options are expensive and have myriad
impacts, so waste managers need to select from among several challenging choices. The
most hotly debated topic in many waste management discussions is whether to burn
or bury our waste. This discussion centers around the world's two most popular waste
disposal options: energy from waste (EFW), which is also known as waste to energy, and
landfilling. But rarely is there an "either/or" scenario; landfill and EFW must co-exist as they
each fulfill different roles in an integrated waste management program. Here we discuss
the merits of each model from the perspective of technology, cost, local considerations,
and global environmental impact.
52 1 IFC.ORG/HANDSHAKE


ENERGY FROM WASTE
TECHNOLOGY                                        B
Yesterdays highly polluting trash incinerators
and leaking, stinking dumps burden both          s          c
landfills and EFW efforts. Today's EFW air
pollution control technology is so highly
advanced that dangerous pollutants, such as      d           o         a p         -
dioxins and heavy metals, have been virtually                    s
eliminated-in some cases by as much as 99
percent. Germany's Ministry of the Environment
reports, for example, that residential fireplaces  o
emit 20 times more dioxins than EFW plants.
Many EFW plants also enable real-time moni-
toring of key operational parameters, such as
carbon monoxide levels and temperature of
stack emissions, providing important assurances
to nearby residents and regulatory authorities.  However, these costs are often difficult to
Such plants benefit from regular and sustained  compare directly as ancillary benefits and local
technological advances.                        subsidies can drive overall costs.
Landfilling, although not as dependent on     The method of procurement is slightly different
technology as EFW, also benefits from regular  for EFWs and landfills. An EFW plant is similar
process improvements. Procedures to recircu-   to purchasing a costly building that is operated
late leachate, improve leachate treatment, and  over its lifespan. A landfill, on the other hand,
update collection of landfill gas are constantly  is similar to an ongoing civil works project.
reevaluated.                                  The finished product is a green space such as a
golf course or park. Financing an EFW requires
COST                                          upfront capital, usually issued through bonds or
Overall (total) costs for EFW are about $70 to  the operator's own financing.
$200 per tonne, while sanitary landfilling is less  Comparing costs of landfilling and EFW is chal-
than half that at $40 to $100 per tonne. Learn  lenging since they are considerably different. The
more from "What A Waste: A Global Review of   total cost is impacted by considerations that are
Solid Waste Management."                      often set by political dictate, like feed-in tariffs
1FC 153


for generated electricity, a price on carbon, and  is certainly not free of opposition, but they tend
location and cost of land. Other important cost  to generate less angst.
inputs include prices of recyclables, ash disposal  The waste hierarchy ranks waste management
costs, environmental legislation (stack emissions  options in order of preference: reduce, reuse,
and leachate treatment standards), and tipping  recycle, recover, and finally, dispose. Using waste
fees.                                        as a fuel has benefits such as displacing fossil fuel
and reducing the volume of waste by up to 90
LOCAL CONSIDERATIONS                         percent.
Few other issues have the potential to gener-  EFW complements recycling, if sized correctly.
ate street protests from angry residents than  Research from the European Union and com-
announcing a planned landfill or other waste  munities in the U.S. with EFW plants shows
disposal facility. The fury is often exacerbated  that jurisdictions with the highest recycling rates
by the perception of local residents who see  often have EFW facilities. When EFW facilities
urban garbage being dumped in a rural setting.  are too large-with "pay or put" contracts that
Additional truck traffic and real and perceived  require local governments to always provide a
impacts make siting any kind of waste disposal  minimum amount of waste-they can discour-
facility very difficult.                     age long-term waste reduction and recycling
EFW facilities are often located in more indus-  efforts.
trial settings, closer to city centers. Their siting
Landill ar siila inscoe adcmplxitto Thre, wasten hiirrh wrks  waecste management
20 ear, ladfll equre hevymaciney o  rpcyclae, ecve, and inlly dspos.ing waste
matria. Wstemanger ned tenurethathrease aflwas bneis suchlasl dispfulacingl forsi,fe
andlinrs or ew ell, lon wih ste upevisonand reducg o wthe v leoa wasento 9
agriculture? ~ ~ ~ ~  ~   ~   ~   EF   compeiensaemreaeal t  adi lem teyn recclng ife sieds correly
Resarc from the Eurpea Union and com-raes
Sitng  ladfil i a ompictedproesswit m munipetis inthsierU.. Th cneF n pathos
opton  illfin  moe dtaied,ste-byste inorageiongtrom Waste redton and  recycslin
BU ILDIN        S          LADIL     LS
Ladil ar si    i in scp an-oplxt to lage onon        ii   ok   rjcso0       to
20 yers  ladilrqie hevIahnr           ocmatwse xaae n              oesioe
maeil Wat-aaesne           o nueta hr       r alay fud aalal fo     -ulivlwrs
and ines fo ne cel,ln    wit sit suevso an cmucatn wit loaesdns
Ladil als nedteflynertdit loa laduepan.Bfr wrstt,thfina
54 IIFC.ORG/HANDSHAKE


For best operational efficiency, EFW plants  also needs to be integrated with a nearby energy
require upfront waste processing and recycling.  customer.
Materials like PVC plastic and florescent light
bulbs should be removed at source to reduce  ENVIRONMENTAL IMPACT
emissions. These efforts can be linked to city-
wide recycling and hazardous waste programs.  EFW is often considered a renewable energy
Moreover, EFW operators are keen to have these  source, or at least climate-neutral, according
wastes removed to protect equipment and ensure  to the Intergovernmental Panel on Climate
safe operation.                             Change. Although EFW plants emit greenhouse-
Landfills, on the other hand, tend to be more  gases, the major portion (50 to 67 percent)
forgiving of spurious waste products, or wastes  of carbon is biogenic, so the combustion does
withnot increase the total amount of carbon in the
withhig moitur conent Unlke FW,atmosphere. This is because the carbon is part
landfills are constrained by total volume. Recy-  of the earths carbon cycle already.
cling and diverting waste can extend the life of
landfills (although, similar to EFW, local govern-  In addition, combusting one ton of waste in
ments that rely on waste tipping fees for overall  an EFW plant prevents one ton of CO2 being
revenue might have an incentive to accept more  emitted, according to the Environmental Protec-
waste).                                    tion Agency. By comparison, landfills generate
methane, which is a 21 times more potent
greenhouse-gas than CO 2. Landfill gases need
In an ideal world of less waste,            to be collected and combusted (also often
fewer EFW     plants and fewerenergy).
fewe  EF  plats  nd fwerIn an ideal world of less waste, fewer EFW plants
landfills would be needed. But as           andfewerlandfillswouldbeneeded. Butas
waste volumes around the world              waste volumes around the world are expected to
are expected to double in the next          double in the next 30 years, more landfills and
30 years, more landfills and EFWs           EFWs are inevitable.
areFor peak performance, both EFW plants and
are ievitble,landfills require professional management and
unrelenting attention to waste separation and
community involvement. Better decisions are
Landfills may be more appropriate in communi-  made when the public is part of the decision-
ties where waste tends to be high in moisture,  making process and supports an ongoing waste
collected erratically, and sustained regulatory  management program. al
oversight may be missing. For best effect, EFW
1FC 155


bmcs
kl avi'
By Atilio Savino, International Solid Waste Association
56 1 WC.ORG/HANDSHAKE


CLIMATE
A
While waste contributes relatively little to climate change-only 3 to 5 percent
of anthropogenic greenhouse-gas (GHG) emissions-certain waste management
approaches offer an immediate, cost-effective way to achieve significant cuts in
global GHG emissions. Using existing technologies that can be deployed at scale
in virtually all regions and markets, waste management can be transformed into
a climate mitigation tool.
Every city, region, and country has a unique  These strategies include:
foundation of waste composition, technolo-
gies and infrastructure, climate conditions, and  COLLECTION &TRANSPORTATION
economic capability. During the past 50 years,
the waste management sector has developed the  Optimize collection routes and streamline
technology and expertise to tailor its approach  operations to improve fuel efficiency.
to these specific conditions of each area. A key  - Use alternative fuels (e.g., biodiesel,
advantage of waste management's GHG mitiga-   bioethanol).
tion potential is that it can use these conditions
as a foundation to enhance overall performance.  (el andewatea     transport
There are several strategies in the waste manage-
ment sector with the potential to reduce GHGs.  RE
They provide opportunities for both upstream    R      LE
and downstream cost savings, energy efficiency  - Increase material recovery rate to save energy.
improvements, and public health and lifestyle  - Recover substitute fuels (e.g., waste oil,
Srefuse-derived fuels).
1FC 157


Ig  ENERGY FROM WASTE                            BIOLOGICAL TREATMENT
* Generate thermal energy and electricity   * Increase compost production
from waste combustion as a cost-competitive  (a low-emitting treatment solution).
substitute for conventional fossil fuels.  * Recover methane from anaerobic
* Recover metals and bottom ashes             digestion processes.
from incineration.
POTENTIAL EMISSION SAVINGS FROM EU LANDFILL DIRECTIVE
150 -
0
C
2Z100-
C
0
0
-50 -
-Recycling
-Incineration
_100-   Landfilling
-0 Transport
Total savings
-Net emissions
-150       .      I 
1990         1995        2000        2005        2010         2015        2020
58 1 IFC.ORG/HANDSHAKE


J    LANDFILL                               i    ENVIRONMENTAL BENEFITS
* Install active landfill gas collection and  * Reduced GHG emissions generation.
treatment systems.                        - Reduced environmental degradation
* Use landfill gas as a fuel to produce       from uncontrolled waste disposal.
electricity or thermal energy.             - Resource and energy conservation
through material recovery.
THE EU AND        BEYOND                    * Energy recovery to reduce demand on
Recent experience in European Union (EU)      limited natural resources.
countries has shown that through the combina-
tion of proven waste management technologies,    ECONOMIC BENEFITS
comprehensive regulatory standards, and broad,
multi-stakeholder coordination and communica-
tion, municipal waste management can achieve  - Revenues from the sale of carbon reduction
substantial, near-term reductions in GHGs.    credits recovered energy, and materials.
Between 1995 and 2008, for example, municipal  * Technical expertise and training to facilitate
solid waste management systems in the EU have  technology transfer and build capacity.
reduced approximately 48 million tonnes of
CO2-equivalent. Another 62 million tonnes of     SOCIAL BENEFITS
CO2- equivalent will be reduced by 2020 as the
EU Landfill Directive is fully implemented in  * Improved sanitary and health conditions.
the coming decade. This will make the municipal - New jobs from construction of new
waste sector a net GHG reducer between 2012   facilities and projects.
and 2020.
*Training and capacity building in support
In developing countries, however, rapid increases  of waste management modernization.
in population and urbanization are resulting
in increased waste generation. GHG emissions  Movin from waste management to resource
will also increase unless a new approach takes  management is a transition critical to the success
hold. Implementing effective waste management  of all economies. In this transition, waste preven-
systems in these developing regions can bring  tion, resource recovery, reuse, and recycling are
a wide range of environmental, economic, and  essential and enabling components of strategies
social benefits.                            that can help slow the negative effects of climate
change for generations to come. IN
EFC B59


SCLIMATE
Photo (D Bill Stamps/KUHF New,s, Clinton Clir)ie Initiative Globe
nurturin
new r ners Ips
By Karen M. Luken, Clinton Climate Initiative
CLINTON CLIMATE INITIATIVE
CURBS METHANE EMISSIONS
Developing public-private partnerships for integrated waste systems can be
challenging, especially in developing cities and countries. The Clinton Climate
Initiative can help guide municipal and national governments in changing waste
systems to reduce methane emissions.
60 IFC.ORG/HANDSHAKE


While the term "carbon footprint" is so widely
used that it is now included in the Webster-
Merriam dictionary, the impacts and origins
of methane are just beginning to be recog-
nized. Methane is the second most prevalent
greenhouse-gas emitted from human activities.
Methane's lifetime in the atmosphere is much
shorter than carbon dioxide, but methane is
more efficient at trapping radiation than carbon               A PRODUCT
dioxide-and also more damaging. Pound for
pound, the comparative impact of methane on
climate change is over 20 times greater than
carbon dioxide over a 100-year period.
METHANE 101
Methane from human activities can be emitted
from natural gas and petroleum systems, raising
livestock, and discarding organic wastes in land-  The other reason for the CCJ's focus on methane
fills and wastewater treatment facilities. When  is that the annual quantity of waste generated,
organic wastes, such as food, garden trimmings,  especially in emerging markets, is growing at an
wood, paper, and sludge decompose, methane is   alarming rate and is expected to triple by 2025.
released into the atmosphere.                   For most of these cities and countries, waste
For many communities, landfills and waste water  Wtoguinc tere i ig         teia for
treatment systems can be the largest single source
waste to be improperly managed. This can create
of methane emissions. But these emissions can
be significantly reduced by initiatives that divert
waste from disposal, such as composting, or     Globally, waste accounts for approximately
capturing the methane to use as a biogas for    3 to 5 percent of greenhouse-gas emissions
generating energy. This is one of the reasons   from human activities. However, waste has the
why the William J. Clinton Foundation's         potential to become a significant contributor to
Clinton Climate Initiative (CCI) is guiding     the reduction of greenhouse-gas emissions. This
municipal and national governments in chang-    is because recovering waste to manufacture new
ing their waste systems in a manner that reduces  products or create energy avoids emissions dur-
the emission of methane.                        ing the product life cycle.
1FC 1 61


DEVELOPING        SUCCESSFUL PPPs            implementation. Unless roles and responsibilities
Because of the limited financial resources, insti-  ane comprod
tutional capacity, or technical knowledge, many
developing cities and countries are considering  For example, it is not uncommon for the market
the use of PPPs to implement their integrated  conditions for the products and energy to be
waste systems. However, for PPPs to succeed  assessed only after a private project developer
and flourish in the waste sector, the risks to the  and waste technology has been selected. The
private project developer, public officials, and  private developer will assume that the public
financial investor must be diligently assessed  officials are securing off-take agreements for
and mitigated.                               the products and energy that the waste system
will create unless the tender documents clearly
indicate that responsibility. Conversely, public
officials often think that identifying a market's
A waste PPP is a 10- to 20-year              product and energy is the responsibility of the
relationship-so it is paramount              private developer.
that all partners are committed              Inability to regulate
to collaborating, especially in              Regulations to govern waste systems and
the more complex environment                 advanced waste technologies are either non-
of an emerging market.                       existent or severely insufficient. Consequently,
ascertaining public and political support can be
an insurmountable barrier for developing waste
systems. This is due largely to safety, health, and
Public-private partnership (PPP) projects in  environmental concerns. These concerns are
waste carry unique risks. Overall, the most  justified as cities without regulations are often
common challenges for developing cities and  targeted by developers and technologies that
countries include an unclear delineation of roles  would never be considered in North America
and responsibilities, inability to regulate, and  or Europe. Thus, it is essential for regulations
unrealistic financial expectations.          to be in place before the procurement process
commences, along with training for public
Unclear delineation ofroles and              officials to monitor and inspect waste systems.
responsibilities
Even if the PPP mandates a private company to  Unrealisticfinancial expectations
design, construct, finance, own, and operate the  Private investors typically seek a 15 to 20 percent
new integrated waste system, the public sector  return on investment (ROI) to consider the
will still have a role and responsibility in its  project financially viable. While a facility within
62 1 IFC.ORG/HANDSHAKE


an integrated waste management system may         METHANE PRODUCTION
be able to achieve this ROI, most financial
assessments do not examine the associated
waste infrastructure costs (i.e., collecting and
transporting the waste to the facility).
Although most solid waste projects need to                     The critical factor in
demonstrate a guaranteed quantity of waste                     methane production
over the project duration to receive financing,                (CH) is the amount of
developing cities and countries typically do not               biodegradable waste
have the operating or maintenance equipment to                 sent to landfill sites. Over
guarantee the delivery of waste. Therefore, while  a 20-year period, one ton of methane
the facility can be profitable, the waste system  causes 72 times more warming than
will not succeed if the public sector incurs the  one ton of CO2'
entire financial burden of improving the waste
infrastructure.
A waste PPP is a 10- to 20-year relationship-
so it is paramount that all partners are com-
mitted to collaborating, especially in the more
complex environment of an emerging market.
For private sector developers and investors,
this may mean allocating additional time and
resources to educate their public sector partners
on the technical and financial components of           =*
their new waste systems. For public officials,      V
establishing an unprecedented level of transpar-
ency in their government procurement process
may be required.
Following this advice will help waste PPPs suc-
ceed and yield systems where waste can become
a resource for making new products and energy,
rather than contributing to global warming. ct
Sources: Environmental and Energy Study
Institute, World Bank Group
1FC I63


SCLIMATE
By  ef Cop         n    eain     Soli     WateA         * cia
A way forward for the Clean Development Mechanism
The Clean Development Mechanism (CDM),      approval process could lead to a greater number
introduced under the Kyoto Protocol, provided  and better geographic distribution of imple-
an opportunity for the waste sector to generate  mented emission-reduction projects.
revenue from the sale of carbon credits, thereby
creating significant incentives for greenhouse-  ARTICULATE BENEFITS
gas (GHG) emission reductions. However, the  The ways national governments and the private
early development of CDM has faced a number  sector can benefit from CDM have not been
of challenges. To solidify and expand the post-  well articulated. However, national governments
Kyoto efforts, the following steps should be  in developing countries can reap significant
considered:                                 rewards. Those that have sound proposals for
the enhancement of their waste management
STREAMLINE BUREAUCRACY                      practices set out within a Nationally Appropriate
Although significant progress has been made on  Mitigation Action plan, either as a stand-alone
the CDM since its inception, a more streamlined  proposal or incorporated within a suite of GHG
641I IFC.ORG/HANDSHAKE


emission-reduction targets, qualify for funding  A      T    K        PROTOCOL
through the Global Climate Fund.
EXPAND ENERGY FROM WASTE                       T   K     P     l     i      o
Nearly 90 percent of the more than 200 regis-  a         l        t         .d
tered CDM solid waste projects involve landfill  F      C           o C
gas flaring and recovery. However, most of these  C                    0i c
employ controlled flaring of trapped gases and  st    i
do not convert those gases to energy. An example
of an ambitious initiative is the landfill gas-to-
energy scheme in Bogota, Colombia. The landfill  a  p       r         f t   ur-
site accepts 6,000 tonnes of waste per day. By
trapping the methane, the site produces electric-  a      a a r    o m     t   1
ity and gas for up to 70 neighboring brick kilns,  y   of i    a      th Prooco
replacing the fossil fuels currently used.
ENCOURAGE USE OF TECHNOLOGIES
Similarly, only a limited number of large-scale
projects involve advanced solid waste treatment
technologies, such as large-scale composting,  in F  u   2. Its f    c   m   e
gasification, anaerobic digestion, and process-  i
ing refuse-derived fuel. These technologies are
significant not only for tackling GHG emissions
but also for providing secondary resources and
renewable energy sources.
The relationship between waste management and
EVENLY DISTRIBUTE BENEFITS                  climate change is now recognized widely. This
CDM projects have been unevenly geographi-  should help secure greater funding for interna-
cally distributed and have therefore not resulted  tional agencies and allow access to improved
in significant benefits for developing countries.  financial mechanisms for waste management
However, there is notable unrealized potential  improvement in developing countries of the
for additional CDM projects, including the  post-Kyoto world. In addition to the traditional
advanced technological solutions outlined   and widely recognized health and environmental
above. This potential includes host-country  benefits of enhanced waste management, we can
coverage that includes the least developed  now add GHG mitigation and the production of
countries (which currently have a very limited  secondary resources and renewable energy. [a
uptake of CDM projects).
Photo  Troels Dejgaard Hansen, UN Climate Wall, Copenhagen
IFC 1 65


&&－…響
’…ーグー－--－・
×かマり
ー×％メブ
勤


COMMUNITY ENGAGEMENT
.. ........
N
2m k
0- W"
In many cities in developing countries, the informal sector plays an
important role in managing municipal solid waste. The informal
recovery of recyclables from the solid waste system reduces overall
solid waste management (SWM) costs for municipalities. Apart from
this, informal sector waste management activities also allow munici-
palities to achieve recycling objectives and reduce use of precious
landfill space. Formalizing the roles of the informal sector and inte-
grating their activities into municipal strategies could institutionalize
and strengthen a labor market with valuable skills to offer.


Waste management systems in the cities of many  The informal recovery of recyclables also reduces
developing countries could not be coordinated  overall SWM costs for municipalities by reduc-
without the informal sector: waste pickers, scrap  ing the need for collection, transport, and
collectors, traders, and recyclers collect, sort,  disposal. The savings on transport depend on
process, store, and trade waste materials. In fact,  the point at which the material is removed from
many more tons of recovered materials come via  the waste stream for recycling. If material is
informal channels than formal channels. In most  recovered at the disposal site, transport costs are
developing countries, as much as 15 to 20 per-  not reduced, but disposal costs are reduced. For
cent of waste is managed by the informal sector.  example, Delhi, India saves around C6.7 to C7.5
million annually.
INDIVIDUAL AND PUBLIC
ECONOMIC BENEFITS                            ENVIRONMENTAL BENEFITS
Profit-making opportunities for materials with  The increased recycling activities help
high intrinsic value create incentives for much  palities reach recycling targets and save precious
higher levels of recovery and recycling in the  landfill space. It also reduces the extraction of
raw materials and returns secondary raw mate-
ing th informal sector
Source: CWG-GIZI
e     n aw     Scheinbergetal., 20 10
68 IIFC.ORG/HANDSHAKE


*... COST SAVINGS OF WASTE PICKERS FOR MUNICIPAL WASTE            .   .........
:     COLLECTION AND DISPOSAL (AVERAGE CONTRIBUTION PER YEAR)      Source: CWG, GIZ, 2010:
:    CLUJ-NAPOCA, ROMANIA     E63,000
LUSAKA, ZAMBIA        E1.47 million
PUNE, INDIA         2.2 million
QUEZON CITY, PHILIPPINES          E4.2 milion
CAIRO, EGYPT                                   E14.47 million
LIMA, PERU                                      E15.76 million
rials to the production cycle. Since recycling  of waste at the source, by giving them rights
requires less power than production processes  over recyclables and guaranteeing them regular
with primary raw materials, there is a significant  access to waste. In 2006, the Pune Municipal-
secondary benefit of reduced energy consump-  ity in India granted waste pickers the right to
tion. Additionally, informal sector recovery  collect waste and a service fee from households.
itself uses less energy since many informal  In Bogota, Colombia, the appellate court struck
activities rely on human or animal muscle    down the exclusive right over waste of a munici-
traction, rather than motors.                pal waste contractor and restored the right to
waste to the waste pickers.
FORMALIZING         THE INFORMAL             To transfer these rights, municipalities must
Attitudes of municipal authorities toward the  enter into direct contractual or covenant rela-
informal sector vary: in some places there is hos-  tions with informal sector organizations. Given
tility, in others indifference, and in some places  sioecon   m eans, enoalisector
they are regarded as a useful part of the SWM  ne   oro    oranize inorcoopetor
system and are given the opportunity to enhance  oeeg struturMni   cpalites or
their livelihoods.
can provide legal support in establishing coop-
The role of municipalities is critical to mobilizing  eratives, providing training, and creating other
the informal sector and organizing the informal  services to improve working conditions (such as
valorization sector. For example, municipalities  identity cards and access to health insurance).
can integrate waste pickers into the collection  In Bangladesh, for example, Waste Concern
IFC 1 69


:   INFORMAL & FORMAL LIVELIHOODS IN SIX CITIES                                    .
City/Indicator  CAIRO     CLUJ      LIMA      LUSAKA     PUNE     QUEZON     :
Total no. of livelihoods in infor-
*    **33,000                3,226      17,643     480       8,850     10,105    :
*mal waste sector (persons)
*Total employment in formal
8,834      330       13,777     800       4,545      5,591
,waste sector (persons)
* Average informal workers'
2.721    345V2.070   1.767      586       1.199      1.667    o
,earnings (E/per year)
* Represents actual earnings from about 50 days of labor per year of E345 multiplied by 6 for purposes of comparison
with other cities.                                                 Source: CWG-GIZ, 2010
and other NGOs train waste pickers in organic    In some cases, conflicts may arise with the
waste recycling. The pickers then sell the com-  private sector. For the private contractor or
post to a large fertilizer company.              enterprises engaged in collection on payment
of paid-per-ton disposed at the landfill, the
PARTNERING          W   ITH  THE                 informal sector waste collection becomes a com-
petitor and cuts into their profits. These firms
PRIVATE SECTOR                                   have an interest in collecting the largest possible
In the context of privatized waste collection    quantity of waste to increase their revenues. In
services, collaboration between the informal     this context, they may be inclined to develop
sector and the formal waste collection sector is  strategies to access waste at the earliest possible
possible. Waste pickers can partner with waste   stage or to prevent the informal sector from
collection enterprises or vice versa. For those  collecting waste.
who are not engaged in recycling, a partner-     In such a situation, the public sector should
ship with the informal sector would reduce       either help integrate the informal sector to work
the volume of waste collected and would cut      with the formal sector or ensure that contracts
their transport costs. In Brazil, for example, the  for private sector operators are designed in a way
private sector delivers recyclables to informal  that ensure the informal sector has access to and
sector recyclers, while informal recyclers make  the right to waste.
arrangements with formal recycling enterprises,  Regularizing and integrating informal recovery
processors, and waste buyers.                    into the overall solid waste system could enhance
70 1 IFC.ORG/HANDSHAKE


recyclable recovery rates and reduce overall solid waste
management costs. Generally, policies that facilitate the           S        M
integration of the informal sector will result in an increase
in the rate of material recovery. Consequently, disposal           a       r            * t
s      * g       -     *
rates will drop, allowing for savings in transportation
and landfill operations.                                           w
Many forms of waste valorization are found in different           p      ,   t   l      p
combinations: personal or commercial reuse, reuse with            t   r       .       i   m       p
repair, recycling, and composting. In all these scenarios,        t    .         o     e    m ..a.
municipalities make a net gain and can therefore reach            t    m.. I B                    f
higher recycling and landfill diversion rates quicker than        e         d    c         s      th.t
with their conventional systems. a                                34 percent o   we
t*
This article was adapted with permission from Proparco's magazine,  .  5    e -      t *        .   *
Private Sector & Development (Issue 15, October 2012).            4      t                    .
INFORMAL RECYCLING SECTOR: WASTE TRADE PYRAMID
F"          TRADERS
Includes retailers, stockists, and wholesal-
1W    ers, many not registered as businesses.-
WASTE COLLECTOR
IF                   Formal municipal garbage collection.
ITINERANT SCRAP BUYER
IF                           Purchase small quantities of waste (plastic,
paper, glass, metals, etc.) from households.
WASTE PICKERS
Engage in the free collection of waste from
FF                                     municipal garbage bins, streets, and dumps.
IFC  71


INTERVIEW
Interview & Podcast by Alison Buckholtz


In the new podcast conversation between Handshake and the
2013 CNN Hero Chad Pregracke, founder of the nonprofit Living
Lands and Waters, Pregracke shares his strategies on communi-
cating the need for cleanup.
If you've ever tried to communicate how the  volunteers who show up in each city. As some-
world's growing mounds of garbage threaten the  one on the ground-and in the water-Pre-
environment and worsen the effects of climate  gracke's perspective on what it takes to get others
change, you already know that the scale of the  invested in the environment is practical rather
problem defies easy explanation. But that didn't  than theoretical. Although he does now work in
stop Chad Pregracke, head of the nonprofit  partnership with some of the local governments
Living Lands and Waters. When he tried to work  that first ignored his efforts, his corporate part-
through local government to solve the garbage  ners have been equally strong backers. In fact,
problem in rivers near his home in Illinois, no  as he tells Handshake, he reached out to his first
one responded. So he started circulating pictures  corporate sponsor when its name flashed on the
of the trash in his community. These pictures  screen while he was watching a NASCAR race.
captured residents' attention, and they volun-  "If theyre interested in the community, they
teered to pick up rubbish. With Pregracke at  should be interested in the communitys
the helm, they kept volunteering; eventually,  environment, too," he says.
he launched a trash barge as a floating class-  Though this particular "hero" is quick to give
room to continue education and encourage   credit to everyone on his team, Pregracke's
group cleanups.                            effort to engage his community in cleanup
Fast forward 15 years: about 70,000 volunteers  efforts started for the most personal of reasons:
have pitched in, helping collect more than 7 mil-  he was appalled at how garbage littered the land
lion pounds of trash across the U.S. and in other  he loved. The strategies he followed to attract
parts of the world, including Belize and South  others who shared his goals inspire and teach
Africa. In 2013 alone, Living Lands and Waters  those who want to make a difference,
conducted 167 cleanup events. For his efforts
to tackle the world's waste problem starting at
home, Pregracke was named 2013 CNN Hero
of the Year.
Pregracke literally lives his job: nine months out  AN  A             A
of the year, he resides on a barge with members     A               A
of his 12-person crew. As recounted by CNN,   PERC
the team goes around the U.S. with a fleet of
boats, and they try to make cleanup fun for the
1FC I73


Whether a new technology for waste manage-
c mi    I          ment is being developed, or an old dump
rehabilitated to make place for a sanitary land-
fill-and whether it takes place in a developed
Engagig          or an emerging economy-every solid waste
e  ia          management (SWM) project will have to engage
with concerned communities and other inter-
sector         ested parties. Successful SWM projects integrate
community engagement into each phase of the
project, giving the stakeholders the opportunity
to contribute to the project, provide valuable
information, and help identify key issues that
will be prominent in the various project phases.
The level of engagement depends on the project
type, magnitude of the challenge, and stakehold-
ers' concerns. Therefore, planning and managing
an effective community engagement process and
keeping stakeholders in the loop is key to
a project s success.
The informal sector plays a major role in the
SWM system of many countries. Best-practice
SWM strategies incorporate the views of the
informal sector in the decision making process.
A successful strategy will also integrate, organize,
upgrade, support, and incorporate informal sec-
tor individuals into the SWM system to ensure
their livelihood and quality of life is restored or
enhanced by the project's activities.
THE CASE OF KAMPALA
In Uganda, the Kampala Solid Waste Manage-
ment public-private partnership is shaping up
y  D p  n  A     E                    to be an especially good example of how to
structure SWM outreach to engage the informal
ChristopherO/obo,,I
Photo @D Wastepickers Alliance Uganida


COMMUNITY ENGAGEMENT
sector. In Kampala, many people dispose of  Formalize Strategy and Plan
solid waste through indiscriminate dumping,
burning, and burying. Only 55 percent of solid  Kas ti cleavobectv an    esae
waste generated is collected, transported, and  tar  eaceed w   ith  an ctvsa  -
disposed of in the city's one landfill site. Solid  h   ea e coultation, and
waste collection and transportation in the project edcation ad
area is currently carried out by the Kampala            knowledge sharing campaigns,
Capital City Authority (KCCA) alongsideinterviews with key stakeholders, stakeholder
private sector and informal collectors, depending  andotailredccmmuni ation trial
on an areas income level. The city's landfill is
close to capacity and is in need of remediation.  Require the PPPto Create Commercial Waste
There are currently 380 registered waste pickers  Picking Opportunities
at the landfill. In addition, there are Community
Based Organizations (CBO) involved in recy-  KCCAlis cmie improving waste     piers'
cling at source and collecting waste for a nomi-  lielihos whe provnte Anageme
nal fee from informal settlements.
To resolve these challenges, KCCA is developing  and o enorma  ec e a te poen-
the new Kampala City Integrated Waste Man-  t     al re on  e ew   te KCAeil
agement System. The new system will improve  al reirtinin       bider ofste  lAill
collection, transport, and treatment of municipal  ato  ine  the w  ate pie  int
waste, and incorporate the informal sector as  omerial ialoprations, and deelo
part of an integrated approach across the waste   commuiatioratyn  an thtwll
management value chain.                     ensure continuity.
The informal waste pickers and other informal
recyclers have the potential to be reintegrated in  EuagC Pr    sitEu
the new system, and KCCA is undertaking the
following key steps to help them:           The CBOs are also being encouraged to form
operational partnerships with established waste
Identfy, Plan, Inform, and Consult         collectors in the city so that working relation-
KCCA is designing a strategy and plan to   ships with the informal sector extend beyond
identify, inform, and consult all relevant stake-  the bidding phase of the project.
holders. The goal is to communicate effectively
the overall objectives and mechanisms of the
proposed project, and collect and address key
community comments and concerns.
IFC 1 75


CROWD
S URCING
or waste management
By Antonis Mavropoulos, CEO &rFounder of D-Waste
Waste Atlas is a crowdsourcing open source map that visualizes municipal
solid waste management data across the world for comparison and bench-
marking purposes.
After 15 months of effort from more than 1,000 RESULTS ARE IN
scientists around the world, the first Waste Atlas
Report (www.atlas.d-waste.com) was published  ter nalzin  at 60,000hdocuments,
this past fall. This is an important milestone  the rorldes hat oe than alf o
in the global waste management community  teword's polation does The ae
because scientists from 93 different countries
cooperated to compile data from 162 countries,  health effects are immeasurable.
1,800 cities, and more than 1,800 facilities.  Other Waste Atlas 2013 Report findings are
more easily quantified, but no less shocking.
761 IFC.ORG/HANDSHAKE


INNOVATION
Every human being generates an average of               D-Waste's newest software tools include the app
about 270 kg of solid waste every year, but only       that allows measuring distances from facilities
15.4 percent of this refuse is recycled in official    and dumpsites. These and other apps under
schemes. (Until this study, there was no way to         development to verify content and assure qual-
quantify the contribution of informal recyclers.)      ity will continue to make D-Waste essential in
Furthermore, for every dollar spent in the global       measuring the impact of waste. [0
marketplace, about 47 grams of waste is pro-
duced-with worldwide municipal solid waste                                  Illustration D Aleksander Velasevidistock
generation totaling about 1.9 billion tonnes per
year. At least 37 percent of this waste is disposed
of at dump sites.
WASTE
tTLAt
ISWA
The groundbreaking report and thefree, interactive tool ispublished by the Waste Atlas partnership, a
non-commercial initiative involving D- Waste consultants, the University ofLeed4, the International Solid
Waste Association, GIZISIWEEP-Net, the Waste to Energy Research Council (WTERT), and the Solid Waste
Network ofAsian and Pacific Islands.
IFC  77


By Markus Luecke, GIZ / SWEEP-Net
SWEEP-Net helps its partner countries make the shift from a conservative
solid waste management strategy to an efficient, integrated resource
management solution.
Integrated solid waste management, which in  generation, all of which are serious environmen-
the Middle East and North Africa (MENA)     tal concerns. Loss of valuable resource materials
region has historically been administered by  and income-generation opportunities are also
local authorities, is one of the region's major  significant. On a regional level, organic waste
challenges. But alongside the problem of fast-  management and composting are key elements
increasing quantities of waste, the region suffers  for municipal waste management in countries
from additional roadblocks-like poor political  where about 60 percent of waste composition
will, limited awareness, and lack of financial and  is organic.
technical capabilities to reduce the amount of
waste going to landfills and disposal sites.  THE PRIVATE SECTOR PILLAR
The negative impact of current disposal practices  Private sector involvement is an important pillar
has dire consequences for the entire region.  for the development of innovative approaches to
Adverse consequences include groundwater and
surface water pollution, foul odors, and methaneo w              aee      s     e
78 1 IFC.ORG/HANDSHAKE


INNOVATION
partnership between the public and the private  By assisting its partners through policy advice
sector paves the way for clear political decisions  and collaboration, SWEEP-Net can make a
and a reliable legal and regulatory framework.  difference in creating these much-needed recy-
This allows both parties to develop and imple-  cling initiatives. With proven regional models
ment projects that create employment and        and pooling of resources in place, local authori-
protect the environment.                        ties can develop policies and market incentives
SWEEP-Net was launched to facilitate these      that have the potential to reduce the problem
partnerships. Through pilot measures, guidelines,   pital misallocation. This in turn promotes
training, and the identification of best practices,  economic development that allows for sustain-
SWEEP-Net helps its partner countries make      able resource management.
the shift from a conservative solid waste manage-
ment strategy-based on traditional end-of-pipe
solutions-to an efficient, integrated resource
management solution. This latter approach
replaces the use of fossil resources through inno-
vative and cleaner production processes, as well    i   r     s
as through a change of consumption patterns.
This concept may open new doors for economic        i S          2
opportunities that have not been seen before-
especially in developing countries.                 t   a   D
RECYCLING RESULTS                                   b (       T
Recycling activities are one area of SWEEP-Net's    iy
focus that may lead to substantial resource say-    M
ings and income generation. It is estimated that
every ton of recycled paper saves up to 17 trees
and up to 50 percent of the water needed for
its production. But recycling initiatives require   l    e         i   r
a clear political commitment that is translated
into legal and administrative action. This in
turn allows the private sector to develop and       g
implement innovative economic solutions. The
absence of an adequate regulatory and legal
framework hampers the development of a "green"
sector in many countries of the MENA region.
1FC 1 79


THE WALK
Large organizations such as IFC produce a significant amount of waste from day-to-day
operations. Reducing waste is a key part of IFC's commitment to sustainability.
IFC recycling and composting in FY12
EFW                Donations               Recycling                 Landfill
(Office supplies,      (paper, plastic,
(energy from waste)          furniture)          metal, e-waste)
594,559                  43,217                                              0
lbs.                    bs.                                            lbs.
IFC's ongoing initiatives
IFC has used 100% recy-  IFC's carpet is 30% recycled  IFC uses filtered tap water,  IFC started composting
cled paper since 2008 and  and 100% recyclable.     which reduces the con-   in November 2013.
plans to reduce paper use sumption of bottled water.
by 15% this fiscal year.
80 IFC.ORG/HANDSHAKE


*             4,W
n-th   . end, our, oci-
ety w-ill be-def ined
not p,nly by"what we
creaté,,but.-by._what
.,e ref use to--d-Eýstroy.
-)  S vhll,former rsiden t and
kEOof The NatýJýt,,onervan£¥
* *


0    *"
00 S 0 e 
-  0    000
a  *      .
v   twitter . co/i0W
International
Finance Corporation
January 2014                                                  World Bank Group