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urban development

Time to rethink how to harness the private sector to improve sustainable solid waste management

John Morton's picture
Photo credit: Gigira / Shutterstock.


The post-2015 Sustainable Development Goals (SDGs) are an ambitious set of targets that aim to support a comprehensive vision of sustainable development that embraces economic, social, and environmental dimensions. Solid waste plays an important role in several of these goals, including providing sanitation for all, making cities and human settlements sustainable, encouraging sustainable consumption, and reducing climate change.
 
In the planning undertaken by Multilateral Development Banks (MDBs) to help achieve these goals, one glaring fact stood out: the financial resources needed are not only expected to be substantial, in the “trillions” of dollars annually, but they far outweigh the current “billions” of dollars annually in financial flows from development institutions. Considering this information, it was agreed at the Hamburg G20 Summit that a new approach would be needed to unlock, leverage, and catalyze other sources of financing, including private sector resources.
 
The approach would more systematically prioritize private financing solutions when they are feasible. That is, private solutions that are already working would be considered as a first option; followed by encouraging private investment by reducing policy and regulatory gaps and risks that currently discourage participation; and, finally, as a last option, when private solutions cannot fulfill all the demands of the sector, public resources could be strategically used.
 
Considering the successes and challenges of private sector involvement in solid waste, it is an opportune moment to begin to ask: what are the key issues that need to be addressed to better leverage the private sector to provide sustainable solid waste management solutions?
 
[Read: World Bank Brief on Solid Waste Management]
 
Have solid waste laws done enough?  Regulations and policies have progressed significantly, with many countries establishing new solid waste laws that replace decades-old sanitation or public nuisance legislation. Have these reforms gone far enough to specifically encourage the private sector?  Are there functional mechanisms for cost recovery, and is there sufficient flexibility for the private sector to pursue a variety of contractual and financing arrangements? Are the laws truly motivating investment into modern facilities by providing enforceable requirements and standards for the establishment of landfills, closing dumpsites, and establishing recycling facilities? Are the financing schemes predominantly focused on public financing, or do they cater to what the private sector financing needs? It is worth a second look at how these laws respond to these and other issues, and learning from those countries that have taken them on.

Transforming Karachi, Pakistan into a livable and competitive megacity

Jon Kher Kaw's picture
It will take Karachi as much as $10 billion of capital investment over the next decade to close the infrastructure gaps in the city.
 
On the ground, it is not too difficult to see why this is so. More than 40% of residents rely on public transport, but with 45 residents competing for one bus seat, travel within the city is difficult. Water supply is highly irregular, and rationing is widespread. The availability of water ranges from four hours per day to two hours every other day. Many households rely on private vendors who sell water from tankers at high prices. The sewage network has not been well maintained since the 1960s, and all three existing treatment plants are dysfunctional. Industrial waste, which contains hazardous materials and heavy oils, is dumped directly into the sea untreated. Of the 12,000 tons of municipal solid waste generated each day, 60% never reaches a dumpsite; 80% of medical waste is not disposed of properly.
 
Garbage accumulated on a road median in Karachi. Photo: Annie Bidgood / World Bank