Public Private Partnership in Municipal Solid Waste Management in India
1. Public Private Partnership in
Municipal Solid Waste Management
in India
Bashir Ahmed Shirazi
Expert in Urban Infrastructure and Waste Management
bashir.shirazi@gmail.com
2. Environmental Legislation in India
• The Water (Prevention and Control of Pollution) Act, 1974
• The Air (Prevention and Control of Pollution) Act, 1981
• The Environment (Protection) Act, 1986
• Hazardous Wastes (Management & Handling) Rules, 1989
• Bio-medical Wastes (Management & Handling) Rules, 1998
• Municipal Solid Wastes (Management & Handling) Rules, 2000
4. Growth in MSW Generation
• The MSW generation in India is expected
to increase from 62 million MT in 2012
to 436 million MT per annum in 2050 @
5% annual growth rate
• The per capita generation in India
0.42kg/day which is relatively lower than
the levels of 2kg/day of US
• increasing urbanization and income
levels would result in increase in per
capita generation in India
• 40% of India’s population by 2030 would
reside in urban areas compared to 31%
in 2011
6. Driving Factors for Private Sector’s Participation
PPP
Business
Model
Legal
Obligation
of ULB
Government
Funding
Demand for
Outputs
Availability
of Financing
Increasing
MSW
Quantities
Improving
Quality of
MSW
8. Technology Options – MSW Processing
MSW Quantity,
TPD
Technology Options
>1100 • IWP comprising – Biomethanation +Composting+RDF
• W to E plant for power, based on: gasification , pyrolysis,
incineration and mass burning.
• RDF to cement industry
• Plastic to fuel oil
550 to 1100 • IWP comprising -Biomethanation +Composting+RDF
• W to E plant for power, where wastes exceeds 500 TPD
based on: gasification , pyrolysis, incineration and mass
burning.
• RDF to cement industry
• Plastic to fuel oil
30 to 550 • IWP-BM, CC + RDF as feed stock to power plant / cement
industry. Plastic to fuel oil
< 30 • Biomethanation +Composting
9. Challenges for ULBs
• Funds – Capital as well as O&M Expenditure
• Technical Expertise – Design, Estimates, Supervision, Monitoring,
Environmental Protection
• Commercial Competence – Project Feasibility
• Bid Process Management – Bid Documents and Evaluation of
proposals technically and financially
• Skilled Manpower – to take up O&M
• Availability of Land – Extent & Suitability of Land, Cost of Land and
NIMBY
• Business Approach – Mostly Capital Budget not Profit Centre
10. What PPP Partner Offers
• Private Partner brings in Investment/Capital/Finance, Technology,
Sector Expertise, Skilled Manpower
• Private Partner Manages the project for 5 – 30 years
• Improvement of service levels (mostly linked with payments)
• Compliances with statutory requirements
• Protection of Environment
• Professional planning, execution and operations
• Transparency in payments
• Stakeholders can also monitor performance of concessionaire
12. Process of Engaging Private Partner
Requirements Options
Identification of Suitable Land Own
Consultant
Both by
same
consultant
Works by
same
consultant
Entire work
by same
consultant
Environmental Clearance Consultant
Preparation of DPR Consultant Consultant
Transaction Advisory & Bid
Process Management
Consultant Consultant Consultant
13. Risks and Mitigations
• Well Drafted Concession Agreement
• Political will at the highest levelPolitical Risk
• Accurate forecasting
• Considering economic factors in assessing the
payments like WPI
Economic Risk
• Stakeholder Consultation
• Strict Monitoring
• Campaigning
• Compliance
Social Risk
• Phase wise Planning
• Selection of already demonstrated technology for the
quantity and quality of waste considered
• Modular in nature
Technological Risk
14. Requirements for Successful PPP in MSW
• Guaranteed quantity of waste
• Size of the project
• Practical DPR is required with correct assumptions & projections
and implementable solution(s)
• Implementable concession agreement
• Availability of encumbrance free land before bidding itself
• Obtain environmental clearance before / during bidding
• Right supervision and monitoring
• Applicable penalty clauses
• Measurable service level bench marks
• Timely payments
• Timely release of funds
• Selection of suitable partner
15. Key Factors for Success of PPP in MSW
• Political will to take up and support the project
• Clarity on purpose and objectives of privatization
• Transparency in Selection
• Selection of private Operator through professionals
• Strict Enforcement of statutory and environmental legislations
• Public acceptance for better services
• Healthy relationship between client and concessionaire
• Treat private Operator as a partner (Bedrock of PPP)
• Respect Concession Agreement – Bible of the project
• Timely payments
16. Independent Engineer
• Independently review, monitor and where required by the
Agreement, to approve activities associated with the Design,
Construction, Operation and Maintenance of the Project
Facilities to ensure compliance by the Concessionaire
• Report to the Parties on the various physical, technical and
financial aspects of the Project based on inspections, site visits
and Tests
• Measures performance of the project at every stages
• Assist the Parties in arriving at an amicable settlement of
disputes, should the need arise
• Review matters related to safety and environment
management measures adopted by the Concessionaire for the
Project