Waste Management
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The project entitled “Economic Instruments in Solid Waste Management: Case
Study Maputo, Mozambique” ensured sufficient financial resources to increase the
waste collection and treatment capacity of Maputo City through collection of
payment for waste services over the electricity bill and a carefully calibrated model
for costs of the services.
Location: Maputo City, Mozambique
Keywords: "Waste management framework" " Innovative financing" " Stakeholder
involvement"
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USING ECONOMIC INSTRUMENTS
TO IMPROVE WASTE MANAGEMENT
SERVICES
The project applied a revenue collection system which covered more than 90% of
households as of 2011 by adding the waste fee to the electricity bill, graduated
according to electricity consumption (se below). This proved to be an effective
collection method. The Maputo City Council had identified household waste fee as an
important instrument to improve the financial standing in solid waste management.
The project was executed with the aim of improving cost recovery and ensuring the
economic viability of the waste management systems as the fees to cover costs of
solid waste management were not adequate and the authorities in charge were unable
to collect the existing fees effectively.
The project used a calculation model tool for the implementation of the various
economic instruments to produce the necessary results for the strategy on financial
sustainability. The model used population figures, estimated waste quantities and
planned service provision level for all existing waste streams to calculate the total
expected costs of service provision for any given year within the planning horizon.
Also, the calculations used a system analysis of collection and transportation costs
for different collection types based on regional/international experiences and local
calculations. It is important to highlight that the most critical points are the calculation
of productivity (besides quantity of waste collected in ton/day for a given equipment
or collection system) and financial parameters such as amortization time and capital
costs. The main economic instruments applied in this case study are; Household
Waste Fees, Proof of Service (for large scale non-household waste producers),
Revenue from commercial services provided by Maputo City Council, Disposal Fees
for the current and future disposal sites and Specific Service Related Fees.
In the second phase, the model was enumerated according to service delivery
objectives and designed for long-term analysis with variable parameters such as
service coverage, unit costs and specific revenue calculation. Thus, the model brought
a service related analysis of cost coverage. And in the last stages, the model was
evaluated, adjusted, improved and actualised according to proper experience and
availability of new data. It is important to note that the model was used as decision-
making tool on strategic level and is still in use by Maputo City Council to analyse the
future financial situation of the sector and decide on waste fee increases. As such, it
was a long-term investment to create the model. The continuity of the tool was also
part of the agreement between Maputo City Council and World Bank thus such a
condition is an indicator for the approval and success of the project.
In execution of the project, it was observed that public tender processes and internal
cost monitoring provides further input for improving the quality of data and calculation
parameters as such the result is a linear cash flow analysis of the total cost of the solid
waste management system for each year of the strategy. The method of collecting the
fee is also as important as the fee itself. A major obstacle in the course of project
execution was the non-availability of comparable data from proper or similar regional
experience which allowed for validating assumptions and controlling the final results.
As a result of this, alongside poor quality of data the margin of error of calculation was
increased. Hence, some of the cost calculations had to be adjusted over time for more
accuracy.
The fees collected over the eletricity bill were graduated according to electricity
consumption as a measure for the activity rate of the household. For the Maputo
contect, the fees were [or just the different electricity levels used]
From year 2002 – 2010, Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH supported the Maputo City Council in the implementation of a sustainable
waste system via the Technical Assistance Project AGRESU (Assistance to Solid
Waste Management in the Greater Maputo Area). Other relevant actors involved
include; Electricidade de Moçambique(EDM) and the general public Also, in 2007,
World Bank was integrated into the project via the commencement of Municipal
Development Program (ProMaputo) to design and implement a joint approach on solid
waste management.
Lessons learnt: Results of public tender processes and internal cost monitoring give
further input to improve the quality of data and calculation parameters.
In conclusion, the experience from the Maputo project displayed that the goal of
adequate waste service provision can only be accomplished when the instrument is
suitable and locally apt technical solution, thus these will sustain the services and the
capacity of the institution to implement and sustain
