Operation Model for Implementation of Municipal Solid Waste Management System - Through Public Private Partnership

The Public Private Partnership (PPP) requires safe and conducive environment to safe guard the interest of the private partner against risk and that of consumers against likely abuse by the private partners. The private partners are not generally attracted towards PPP arrangement in solid waste management (SWM) services because of its complex operation and maintenance cost structure and difficulty in fixing sustainability for a long period. Risks are involved due to increase in the cost of energy, chemical, main power and other allied items. On the other hand non affordability of levied tariff results in under utility of the scheme and less revenue collection. A well design cost model is therefore necessary that can provide the cost of each components, which contributes to the total operation and maintenance cost at any time of PPP arrangement. This cost model should take care of the increase in solid waste with the increase in population and incremental cost required to meet it throughout the PPP arrangement. This paper describe the approach and methodology use to design such a cost model and its applicability in PPP arrangement. The model can be used to check financial sustainability, plan for SWM and compute benefits/losses with change in basic parameters.