Argentina: the Solid Waste Management Project Experience

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1 Argentina: the Solid Waste Management Project Experience Horacio Terraza Sr. Environmental Specialist/Task Manager LCSEN The World Bank Population: 38 Mill. SW generation: 0.91 kg/person/day SW composition: 50% organic, 17% paper & cardboard, 14% plastic, 5% glass, 2 % metals and 12% other materials. 90% recollection coverage, 60% disposed in open/controlled dumps Significant social related problem: 30,000 families living out of waste picking or informal recycling Cost Recovery: 0 80% Municipal Expenditure: 1 15% Background 1

2 New Administration: SWM a top priority (also regional) The GoA launched in 2005 the National Solid Waste Management Strategy At the same time the GoA requested the Bank support for the implementation of the Strategy through a lending operation AR-SWM project approved in December 2005: USD $40 Mill. Background Higher Level Project Objectives Improve public health and quality of life through reducing exposure to pollutants and disease vectors from final disposal of solid waste Improve institutional capacity at local levels through improvement of financial models for SWM and training. Enhance environmental policy through improving the SWM legal and regulatory framework at provincial and municipal levels and facilitating recycling and waste reduction programs nationwide Improve local governance through enhancing cooperation among sub-national governments Poverty reduction and social inclusion through supporting social integration of informal waste pickers with training and formalization of waste separation programs 2

3 Specific Goals Develop new environmentally safe and socially acceptable regional landfills as the backbone of final disposal operations and close existing open dumps; Develop legal and regulatory frameworks at the sub-national level; Improve municipal financial management and cost recovery systems to guarantee the sustainability of urban SWM; Ensure the positive social impact of the new SWM system on the waste pickers and informal sectors; Establish provincial and municipal policies related to minimization and recycling; and Apply Carbon Finance mechanisms under the CDM of the Kyoto Protocol to reduce O&M costs for the municipality and encourage good operating practices. Project Components I. Policy and Institutional Strengthening: Strategic Planning and Regionalization Training on SWM and cost recovery Technical studies (dumps closure, market for recycling products, etc.) Public communications and outreach Project Management, Monitoring and Evaluation II. Infrastructure Investments Construction of new sanitary landfills Closure of open dumps III. Social Inclusion Capacity building Technical assistance for micro-enterprises and cooperatives Private Public Parternships 3

4 Eligibility Criteria for Investment Financing Stage Pre-selection Sub-project Selection: Prior to approval for investment financing Eligibility Criteria Provincial SWM Plan developed and including: - Regionalization scheme - Plan for closure of dumpsites - Introduction of sanitary landfills and an action plan for a SW minimization Draft of a legal and regulatory framework for SWM. Landfill siting process concluded, including EIA and Public Consultation Process Land Titling Inter-Municipal Regional Agreement signed The province commits to complement the federal subsidy on cost sharing basis for the infrastructure investments Establishment of provincial/municipal technical teams (including social experts) Proposal for increasing cost recovery efficiency through a tariff scheme Municipal economic contribution for operation guaranteed by the provincial co participation funds. Eligibility Criteria for Investment Financing Stage Sub-project execution: Prior to release of funds for landfill construction Prior to release of funds for closure/rehabilitation of open dumps. Eligibility Criteria Participating municipalities will seek carbon financing Commitment to implement a Social Inclusion Plan Social Inclusion Plans consulted with the stakeholder groups Construction of the recycling facilities has been completed and the social inclusion plan is ready to be implemented 4

5 Incentive Program/ Provincial Allocation Formula National to Provinces Incentive Program: One-time economic incentive to fund only initial infrastructure and closure Higher incentive to poorest provinces to compensate socio-economic differences among provinces Based on an official, comprehensive and transparent local poverty index Investment Financing Allocation Formula: Formula has two components: 1. Fixed: 50 % infrastructure s investment cost 2. Variable: remaining 50 % weighted by IPMH index. Equation: S = IC*0.5 + (IC*0.5* IPMH) where: S = Subsidy for each sub-project; IC= Infrastructure cost, IPMH = Poverty index expressed in percentage 3. Range: 60% minimum 90% maximum 4. Remaining percentage provided by the province Project s Expected Outcomes Development and adoption of SWM plans in 12 provinces Construction of at least 4 Sanitary Landfills Closure of at least 4 main open dumps Increase cost recovery at a minimum level of 60% Reduction of approximately 1 MtCO2e Apply Carbon Finance to reduce O&M costs (10%- 20%) Creation of micro-enterprises or cooperatives for recycling 5

6 Project Status and Participation Project pending GoA s approval 4 Provinces already submitted LoI to participate: Chubut, Mendoza, Santa Cruz and Tucumán; and one Municipality (Mar del Plata) Those provinces already working on compliance with eligibility criteria. Tucumán and Mendoza have complied with most of the preselection and sub-project selection stages criteria Chubut, Santa Cruz and Mar del Plata working on sub-project selection stage. Tucumán launched bidding process for construction of new landfill on retroactive basis Project Status and Participation Chubut: Two regions: Southeastern (Comodoro Rivadavia) and Northeastern (Puerto Madryn Rawson Trelew) Population targeted: 144,751 and 115,000, respectively Per capita generation (kg/day): 1.12 and 1.5, respectively 6

7 Project Status and Participation Mendoza: Two regions: Metropolitan Mendoza - Eastern region (Capital and surrounding districts plus San Martin, Rivadavia, Junin, Santa Rosa, and La Paz) and Central region (San Carlos, Tupungato, and Tunuyán) Population targeted: 1,045,000 and 97,382, respectively Per capita generation (kg/day): 0.74 and 0.74, respectively Project Status and Participation Santa Cruz: One region: City of Río Gallegos and nearby rural communities Population targeted: 78,692 Per capita generation (kg/day): 0.9 7

8 Project Status and Participation Tucumán: 1 region so far eligible for component 2: Metropolitan Tucumán (Alderetes, Banda del Rio Salí, San Miguel de Tucumán, Tafí Viejo, Las Talitas, and Yerba Buena) Population targeted: 1,000,000 Per capita generation (kg/day): Project s Main Barriers and Challenges Lack of institutional and technical capacity Strong NIMBY factor and political opposition Lack of coordination / communication between technical personnel and decision makers Lack of financial planning, solutions more expensive than available budgets. Lack of SWM legal frameworks at national and local levels - Standards Lack of technical standards for construction and operation of landfills Populist wave effect 8

9 Project s Supporting Docs DBO Model Bidding document prepared by the GoA Model documents for Inter Municipal Agreements and Consortiums for SWM Provincial and Municipal models of legal frameworks Toolkit for sites environmental screening and EIA Minimum construction and operation standards for landfills Contact Horacio Terraza Task Manager Tel: Fax: hterraza@worldbank.org 9

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