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LANDFILL MANAGEMENT

Case Study

 

(Successes achieved within a Public-Private Partnership)

by

 Leon Grobbelaar 

PREFACE

DID YOU KNOW 

-                      Every person generates 2.5kg waste per day.

-                      South Africa generates 63 000 tons of waste per day.

-                      There are +\- 750 landfill sites in South Africa.

-                      Only 250 sites are permitted or in the process to be permitted. 

Taken all of the above into consideration, South Africa is striving towards an Integrated Waste Management System 

-                      Waste minimization

-                      Waste recycling

-                      Waste treatment

-                      Waste disposal  

OVERVIEW 

-                      Local authorities have the responsibility to ensure that all people living in their jurisdiction have access to adequate and affordable infrastructure services on a sustainable basis. 

-                      This does not mean that the authorities must necessary themselves handle service delivery operations. 

-                      Local authorities faces considerable pressures to deliver better services to residents within a context of limited financial and human resources.

-                      Retirement of skilled personnel

-                      Lack of finance to no or minimal payment for services 

-                      Local authorities are looking for alternative ways of delivering a high quality service to as many residents as possible. 

-                      This could imply changes in delivery mechanism ranging from reforming management practices to community partnerships to private sector participation in delivery.

 

INTRODUCTION

 

Public Private Partnership is a government brainchild aimed at improving service delivery by all spheres of Government

 

                        PREVIOUS                                                          NEW

               POLITICAL REGIME                          DEMOCRATIC GOVERNMENT

 

Marginalised certain communities in               Transformation of Local Government

terms of service provision                                          on principles of RDP & Gear

 

Budgets and expertise concentrate on            Providing services to larger population

specific geographic areas                                          Financing backlogs in infrastructure

                                                                                and service provision

                                                                                Maintenance of existing infrastructure

 

                                                                                Limited resources

Financial Crisis

 

New ways of addressing financial problems

 

 

FORMS OF PUBLIC PRIVATE PARTNERSHIP

Service Contracts                                                      Management contracts

- Sets criteria                                                                - Manage operation of entrepreneurs

- Evaluate                                                                     - No investment commitments

- Supervisors                                                                - No commercial risk : tariffs

- Pay agreed fee

 

Leases                                                                                    Concessions

- Operates and maintains                                               - Manage

- Own commercial risk : tariffs                          - Operate at commercial risk

- Maintanence                                                              - Accept investment obligations

- No investment in infrastructure                                    - Transfer assets back to authority

 

 

OBJECTIVE OF NEW POLICY

Find creative ways for :

-           Mobilising finances

-                      Mobilising skills

-                      Mobilising capacity

-                      Organisational advantages of the Private Sector

-                      Mobilising labour

-                      Community involvement

 

Public Private Partnership approach found to be a viable approach

METHOD 

Involving the private sector and community partnership mobilizes 

-                      Capital

-                      Management capacities

-                      Technical skills

 

Benefits can be reaped from introducing new capital

 

 

                                    PRIVATE SECTOR EXPERTISE

 

                                                Improvements

 

Cost Recovery                         Efficiency                      Coverage and Customer

                                                                                                 Satisfaction

 

                        Economic empowerment of previous disadvantaged people

 

                                                Skills transfer

 

 

 

 

CONCERNS

 

Tariff Increases                                                 Alienates for

                                                                              Direct accountability

 

 

Corrupt practices                                                    Labour force reduction

 

 

Loss of Union                                                         Consequences in case

Memberships                                                          of contract cancellation

 

 

 

POSSIBLE SOLUTIONS

 

-                      Restructuring

-                      Employee participation

-                      Consultation

 

 

GUIDELINES FOR IMPLEMENTING.

PROCEED THROUGH THE FOLLOWING STAGES

 

-                      Project team

-                      Request for qualifications

-                      Pre qualification

-                      Issue tender documents

-                      Tender evaluation

-                      Preferred bidder

-                      Contract award

 

 

 

FINAL RESPONSIBILITY FOR SERVICE

REMAINS WITH THE LOCAL AUTHORITIES

 

CONTROL MECHANISM

 

 Ensure that the supply  Quantity is acceptable               Price is fair

of service is equitable               

 

 

KEY ISSUES TO BE CONSIDERED

 

1.                  Good governance

2.                  Real efficiency

3.                  Consumer protection

4.                  Reliable delivery

5.                  Transparency

6.                  Stakeholder involvement

7.                  Economical empowerment

8.                  Proper risk management

9.                  Strict performance monitoring

 

 

PROCESS FOLLOWED BY COUNCIL

 

-                      Negotiations with landfill staff (+\- 4 number)

-                      Advertised tender 10 year PPP:

-                      Proposals to empower emerging contractors

-                      Social responsibilities

-                      Investments

-                      Third party adjudication

-                      Award

 

 

EMERGING CONTRACTS REQUIRED

 

-                      Dust control

-                      Management of public off-loading facility

-                      Tyre cutting

-                      Chipping of clean greens

-                      Recycling

-                      Gardening

-                      Cleaning of roads and facilities

-                      Weighbridge administration

 

 

PUBLIC PRIVATE PARTNERSHIP

 

                                    Payment         

 

                                    Invoice                                    Payment

 

Enviro-fill                                Financial  - CC Registration                 Emerging

                                                                  - Monthly meetings Contractors

                                                                  - Income Statement           

                                                                  - Expenditure

                                                                  - Invoices

 

                                                                        Invoice

Public

Private

Partnership                   Rooikraal

 

RDP                                                                - Dust Control                          (1)

Greater Germiston                                        - Public off-loading                   (2)

Council                                                            - Tyre cutting                            (3)

                                                                        - Chipping of clean greens         (4)

                                                                        - Recycling                               (5)

                                                Operations      - Gardening                              (6)

                                                                        - Clean of roads & facilities       (7)

                                                                        - Weighbridge administration     (8)

 

 

 

CONCERNS

 

-           Tariff increase                                                               - Stabilised

-           Corrupt practises                                                          - Reduced

-           Loss of Union membership                                            - None

-           Alienates for direct accountability                                  - Supervision

-           Labour force reduction                                     - Increase in labour force

-           Consequences in case of contract                                  - Operate to Minimum

            cancellation                                                                      Requirements standard

 

 

 

CONTROL MECHANISMS

 

-                      Monthly operational meetings

(Contractor / Consultant / Council)

-                      Monthly Emerging Contractors meetings

-                      Monthly Income Statements

-                      External and Internal site audits

-                      Annual financial statement audits

 

 

 

PUBLIC SERVICE                                       PRIVATE ENTERPRISE

 

-           Infrastructure                                        - Capital support

            resources                                              - Expertise and skills

-           Human resources                                  - Effectiveness

 

 

 

 

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