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Public Private Partnership
             In
   Waste Management

- Experience & Key Issues

            Ravi Kant
             Ramky
       ravikant@ramky.com
         Cell: 99890 22033



                              1
Environment Protection - International Realization
 The United Nations, on 5th June 1972, organized an international
 conference on Human Environment at Stockholm, Sweden.

 This was first comprehensive international attempt to articulate the
 sustainable development โ€“ Environment protection in view of
 growing world population and economic growth.

 The conference recognized the need for specific international and
 national actions to ensure that economic growth takes place with
 due regard to environmental protection and natural resources
 conservation.

 The United Nations Environment Programme (UNEP) was created
 in this conference and the opening day of the conference, June 5
 was declared as the World Environment Day.


                                                                    2
India โ€“ from โ€˜Developingโ€™ to โ€˜Developedโ€™ nation

India is midst of tremendous infrastructure & industrial growth

Greater growth means greater waste generation.

This growth is straining the environment (Air, Water, Soil) like
never before

We need proactive approach to create โ€˜Waste Management
Infrastructureโ€™ for scientific management of waste

Waste management infrastructure is a โ€˜must utilityโ€™ in Master
Plans of all developed cities across the world.

India has to do lot of catching up to be truly called modern
country



                                                                   3
India โ€“ from โ€˜Developingโ€™ to โ€˜Developedโ€™ nation
Let us be conscious of the fact that scientific waste management is no longer
โ€˜moralโ€™ or โ€˜corporate social responsibilityโ€™ โ€“ it is legal obligation in India.

This legal obligation covers all waste generating establishments โ€“ both public
& private in the country
This legal obligation has motivated the private sector to see business
opportunity in waste management sector.
This has caused and accelerated โ€˜Public Private Partnershipโ€™ in waste
                                                Partnership
management sector in India.
PPP, if handled professionally, can provide effective solutions for waste
management & sustainable growth

The central and state governments need to give a big push to enable scientific
management of โ€˜wasteโ€™ as per statutory requirements.

We already have success stories in the country โ€“ however issues of risk
allocation need to be addressed.


                                                                            4
Solid Waste

Industrial Waste
Bio-medical Waste
Municipal Solid Waste




                        5
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



                             Note
Only Union Parliament is competent to make laws on Environment.
         GOI Ministry: Ministry of Environment & Forests
                                                                  6
Environment Protection Act, 1986 (Section 15)
                            the fear of lawโ€ฆ.

Whoever fails to comply with or contravenes any of the provisions of
this Act, or the rules made or orders or directions issued there under,
shall, in respect of each such failure or contravention, be punishable
with imprisonment for a term which may extend to five years with fine
which may extend to one lakh rupees, or with both.



And in case the failure or contravention continues, with additional fine,
which may extend to five thousand rupees for every day during which
such failure or contravention continues after the conviction for the first
such failure or contravention.




                                                                             7
Waste Management
 Reduce
 Reuse
 Recycle
 Dispose
     Bury (Engineered Sanitary Landfill)
     Burn (Incinerator)

Waste management (Collection, Transportation, Treatment & Disposal) has to
 be done without causing any damage to Environment (Air, Water & Soil)

                         Polluter Pays Principle

 Waste is typically managed in common facilities established as commercial
              entities, which charge fees from waste generators

                                                                             8
9
Making of A Landfill - the final disposal




                                            10
Making of A Landfill
Landfill โ€“ Closed & Capped




                             11
Incineration
              (Burning of Waste under controlled conditions)




November 9, 2012                                               12
MSW Management - PPP
PPP provides a mechanism wherein the private Operator brings in Capital,
Technology & Manpower to establish and operate the waste management
infrastructure.

The Private Operator is engaged for typical period of 5 โ€“ 25 years on BOOT
(Build, Own, Operate, and Transfer) basis through transparent bidding
process.

With proper monitoring, PPP ensures Innovation, Efficiency and improved
level of Services together with compliance to Environment, Health & Safety
(EHS).

Since government is a stakeholder in the project, the project planning,
permissions, execution are facilitated.

Government plays the role of regulator ensuring performance standards by
Operator through Penalties, Performance Guarantees, Escrow Accounts etc


                                                                        13
Success of PPP in Waste Management Sector โ€“
              Key Ingredients

Political will at the highest level
Clarity on purpose and objectives of privatization
Leadership & committed administration
Independent โ€˜Regulatorโ€™ & enforcement by โ€˜Pollution Control
Boardsโ€™. This will bring in Trust.
Public acceptance of โ€˜User Chargesโ€™ and better services
Professional attitude of ULBs in working with private โ€˜Operatorโ€™
    Selection of private operator through professionals.
    Treat private operator as a partner (Bedrock of PPP)
    Adequate Tipping Fees & timely payments
    Respect Concession Agreement


                                                                   14
Cheers !
           &
Thanks for your attention




                            15

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Ppp in waste management

  • 1. Public Private Partnership In Waste Management - Experience & Key Issues Ravi Kant Ramky ravikant@ramky.com Cell: 99890 22033 1
  • 2. Environment Protection - International Realization The United Nations, on 5th June 1972, organized an international conference on Human Environment at Stockholm, Sweden. This was first comprehensive international attempt to articulate the sustainable development โ€“ Environment protection in view of growing world population and economic growth. The conference recognized the need for specific international and national actions to ensure that economic growth takes place with due regard to environmental protection and natural resources conservation. The United Nations Environment Programme (UNEP) was created in this conference and the opening day of the conference, June 5 was declared as the World Environment Day. 2
  • 3. India โ€“ from โ€˜Developingโ€™ to โ€˜Developedโ€™ nation India is midst of tremendous infrastructure & industrial growth Greater growth means greater waste generation. This growth is straining the environment (Air, Water, Soil) like never before We need proactive approach to create โ€˜Waste Management Infrastructureโ€™ for scientific management of waste Waste management infrastructure is a โ€˜must utilityโ€™ in Master Plans of all developed cities across the world. India has to do lot of catching up to be truly called modern country 3
  • 4. India โ€“ from โ€˜Developingโ€™ to โ€˜Developedโ€™ nation Let us be conscious of the fact that scientific waste management is no longer โ€˜moralโ€™ or โ€˜corporate social responsibilityโ€™ โ€“ it is legal obligation in India. This legal obligation covers all waste generating establishments โ€“ both public & private in the country This legal obligation has motivated the private sector to see business opportunity in waste management sector. This has caused and accelerated โ€˜Public Private Partnershipโ€™ in waste Partnership management sector in India. PPP, if handled professionally, can provide effective solutions for waste management & sustainable growth The central and state governments need to give a big push to enable scientific management of โ€˜wasteโ€™ as per statutory requirements. We already have success stories in the country โ€“ however issues of risk allocation need to be addressed. 4
  • 5. Solid Waste Industrial Waste Bio-medical Waste Municipal Solid Waste 5
  • 6. 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 Note Only Union Parliament is competent to make laws on Environment. GOI Ministry: Ministry of Environment & Forests 6
  • 7. Environment Protection Act, 1986 (Section 15) the fear of lawโ€ฆ. Whoever fails to comply with or contravenes any of the provisions of this Act, or the rules made or orders or directions issued there under, shall, in respect of each such failure or contravention, be punishable with imprisonment for a term which may extend to five years with fine which may extend to one lakh rupees, or with both. And in case the failure or contravention continues, with additional fine, which may extend to five thousand rupees for every day during which such failure or contravention continues after the conviction for the first such failure or contravention. 7
  • 8. Waste Management Reduce Reuse Recycle Dispose Bury (Engineered Sanitary Landfill) Burn (Incinerator) Waste management (Collection, Transportation, Treatment & Disposal) has to be done without causing any damage to Environment (Air, Water & Soil) Polluter Pays Principle Waste is typically managed in common facilities established as commercial entities, which charge fees from waste generators 8
  • 9. 9
  • 10. Making of A Landfill - the final disposal 10
  • 11. Making of A Landfill Landfill โ€“ Closed & Capped 11
  • 12. Incineration (Burning of Waste under controlled conditions) November 9, 2012 12
  • 13. MSW Management - PPP PPP provides a mechanism wherein the private Operator brings in Capital, Technology & Manpower to establish and operate the waste management infrastructure. The Private Operator is engaged for typical period of 5 โ€“ 25 years on BOOT (Build, Own, Operate, and Transfer) basis through transparent bidding process. With proper monitoring, PPP ensures Innovation, Efficiency and improved level of Services together with compliance to Environment, Health & Safety (EHS). Since government is a stakeholder in the project, the project planning, permissions, execution are facilitated. Government plays the role of regulator ensuring performance standards by Operator through Penalties, Performance Guarantees, Escrow Accounts etc 13
  • 14. Success of PPP in Waste Management Sector โ€“ Key Ingredients Political will at the highest level Clarity on purpose and objectives of privatization Leadership & committed administration Independent โ€˜Regulatorโ€™ & enforcement by โ€˜Pollution Control Boardsโ€™. This will bring in Trust. Public acceptance of โ€˜User Chargesโ€™ and better services Professional attitude of ULBs in working with private โ€˜Operatorโ€™ Selection of private operator through professionals. Treat private operator as a partner (Bedrock of PPP) Adequate Tipping Fees & timely payments Respect Concession Agreement 14
  • 15. Cheers ! & Thanks for your attention 15