Financing Options for Solid Waste Management Sanjay Srivastava, Program Leader, The World Bank
The World Bank Group Who We Are With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable . solutions that reduce poverty and build shared prosperity in developing countries. Our Mission To end extreme poverty by reducing the share of the global population that lives in extreme poverty to 3 percent by 2030. To promote shared prosperity by increasing the incomes of the poorest 40 percent of people in every country. What We Do Partner with Governments: The World Bank Group provides financing, policy advice, and technical assistance to governments of developing countries. Partner with the Private Sector: The World Bank Group helps strengthen the private sector in developing countries by providing financing, technical assistance, political risk insurance, and settlement of disputes to private enterprises, including financial institutions
World Bank’s complementary instruments to assist client countries Private Financing Country World Development Advisory Services Bank Goals Investment Policy Financing Development Country CPF WBG Twin Policy Financing Partnership Goals IFC Framework Program-for- Results Advisory Services & Analytics WBG Comparative MIGA Advantage Guarantee
The World Bank Group - Financing Instruments The World Bank Group provides a variety of financing instruments to the public and private sector including most commonly: Investment Project Financing provides loans , credits, grants and guarantee financing to governments for . activities that create the physical/social infrastructure necessary to reduce poverty and promote sustainable development. Development Policy Financing provides loans, credits, grants and guarantee budget support to governments or a political subdivision to implement policy and institutional actions to help achieve sustainable, shared growth and poverty reduction. Program-for-Results links disbursement of funds directly to the delivery of defined results to help countries improve the design and implementation of their own development programs, strengthen institutions and build capacity to achieve lasting results. Trust Funds and Grants allow for the scaling up of activities, notably in fragile and crisis-affected situations; enable the World Bank Group to provide support when our ability to lend is limited; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that are later mainstreamed into our operations. Private Sector Financing , Direct Investment and Guarantees are provided to private sector entities
Does the World Bank finance solid waste management? Other 1% Middle East East Asia and and North Pacific Africa 18% 12 % Solid Waste Management Loan projects Africa (Number of projects per region ) . Eastern Europe 22% Approval Date July 1999-August 2017 and Central Asia 19 % Latin America South and the Asia Caribbean 10 % 18 % Commitments to Solid Waste Management Loan Projects Approval Date Fiscal Year 2000 – 2017 $676 $700 100 90 $580 $600 80 $476 $500 70 $391 $381 60 $400 50 $286 $289 $302 $272 $300 40 $233 30 $200 $162 $135 20 $83 $76 $64 $66 $100 $34 10 $29 $0 0 200020012002200320042005200620072008200920102011201220132014201520162017 Spending Number of projects
South Asia generates the most waste after East Asia/Pacific Top 10 countries generators of Current & Projected Waste Generation by Region in 2016 , 2030 Mismanaged Plastic Waste and 2050 (Mt/y for 2015) 17.2 CHINA 2x INDIA 14.4 PHILIPPINES 4.52 3.68 BRAZIL TURKEY 2.15 NIGERIA 1.9 THAILAND 1.77 1.77 TANZANIA MENA SSA LAC SAR ECA EAP INDONESIA 1.63 Millions of tons per Year (source:) EGYPT 1.6 Lebreton et al, 2019 World Bank, “ What a waste 2.0” 2018
With a focus on waste data , supporting countries to make critical solid waste management Since 200 e 2000, t the he financing, policy, and planning decisions is key. Solutions include: Worl orld B Bank h k has • Providing financing to countries most in need, com ommit itted ov over r especially the fastest growing countries, to $4.7 b $4 billio llion to o develop state-of-the-art waste management systems . more t e tha han 3 340 40 • Supporting major waste producing countries to solid so lid w was aste reduce consumption of plastics and marine litter through comprehensive waste reduction manag ma agement and recycling programs. progr grams a around • Reducing food waste through consumer the g globe education, organics management, and coordinated food waste management programs.
What a Waste 2.0 – A Global Snapshot of Solid Waste Management to 2050
Examples - Waste Management Operations and Administration .
SWM Financing • Basic solid waste management systems covering collection, transport, and sanitary disposal in low-income countries cost $35 per tonne at a minimum and often much more. • Solid waste management is a large expenditure item for cities and typically comprises nearly 20 percent of municipal budgets in low-income countries, more than 10 percent in middle-income countries, and 4 percent in high-income countries. Budgets can be much higher in certain cases. • Systems that include more advanced approaches for waste treatment and recycling cost more, from $50 to $100 per tonne or more. The choice of waste management methodology and technology depends highly on the local context and capacity for investments and ongoing management.
SWM Financing • User fees range from an average of $35 per year in low-income countries to $170 per year in high-income countries. Full cost recovery from user fees is largely limited to high-income countries. • Almost all low-income countries, and a limited number of high- income countries, such as the Republic of Korea and Japan, subsidize domestic waste management from national or local budgets. • Although public-private partnerships could potentially reduce the burden on local government budgets, they could result in compromises in service quality when not structured and managed properly.
SWM Financing • Local governments provide about 50 percent of investments for waste services, and the remainder is typically provided through national government subsidies and the private sector. • When political support for increasing user fees for households to cost recovery levels is limited, cross-subsidizing from payments by waste generators (for example, the commercial sector) can help reduce the burden on local government budgets. Commercial fees range from about $150 per year in low- income countries to $300 in high-income countries. • Volume-based waste fees have been successful in countries like Austria, Korea, and the Netherlands but are still uncommon because they require coordinated planning and strong enforcement. • Households and commercial institutions in low-income countries are typically charged a flat fee that is collected on a door-to-door basis
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