Municipal Solid Waste Cost Calculation Technical Guidelines for Low and Middle-Income Countries

For low- and middle-income countries © 2024 International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington DC 20433Telephone: 202-473-1000Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. Thefindings, interpretations, and conclusions expressed in this work do not necessarilyreflect the views of The World Bank, its Board of Executive Directors, or the governmentsthey represent. The World Bank does not guarantee the accuracy, completeness, or currency of the dataincluded in this work and does not assume responsibility for any errors, omissions, ordiscrepancies in the information, or liability with respect to the use of or failure to usethe information, methods, processes, or conclusions set forth. The boundaries, colors,denominations, and other information shown on any map in this work do not imply anyjudgment on the part of The World Bank concerning the legal status of any territory or theendorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon orwaiver of the privileges and immunities of The World Bank, all of which are specificallyreserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, fornoncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed toWorld Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433,USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover photo: © Juan Fernando Velez Melguizo | iStock.com. Further permission requiredfor reuse. Graphic design: Miki Fernández/ULTRAdesigns, Inc. MUNICIPAL SOLID WASTECOST CALCULATIONTECHNICAL GUIDELINES For low- and middle-income countries Municipal Solid Waste Cost Calculation Technical Guidelinesdiscusses good practicesfor calculating investment and operating costs in the solid waste management sec-tor illustrated through notional cost calculations for waste management functionsand a combined waste management system. Purpose andaudience The report emphasizes the need to accurately determine the full costs of munici-pal waste services to establish recurrent financing needs and plan new investments.The publication aims to impress that funding annual operating expenses—typicallyhigher than the annualized capital costs of investments and the single most import-ant factor for sustaining waste operations—needs to be a key area of attention forlocal authorities. It emphasizes that the waste management sector is principally anet cost activity that requires financing; while investments in advanced treatmentfacilities and processes bring higher environmental and economic benefits, they alsoincur higher financial costs and hence revenue requirements. The publication aims to support the work of technical departments within munic-ipalities that inform, advise, and guide their municipal councils and policy makers.The guidelines were developed with consideration of the state of the sector and itsdevelopment trajectory in low- and middle-income countries. Municipal Solid Waste Cost Calculation Technical Guidelineswas prepared by NikolaDoychinov and Peter Faircloth. The work was led by Kremena Ionkova. Acknowledgments The team thanks Frank van Woerden, Brian E.C. McCarthy, Ali Abedini, and JamesMichelsen for their valuable guidance. Funding was provided by PROBLUE, an umbrella multi-donor trust fund, housed atthe World Bank, that supports the sustainable and integrated development of marineand coastal resources in healthy oceans. This publication was developed under the general guidance of Bernice K. VanBronkhorst, Global Director of the Urban, Land and Resilience Global Practice. Table of Contents Acknowledgmentsv Abbreviationsxi Executive summaryxiii 1Introduction and overview1 1.1Introductory comments11.2Current and future service costs21.3Chapter outlines4 2Definingthewastemanagementsystem7 2.1Project parameters82.2The waste management system and its technical components82.3Project parameters and scenarios used for sample calculations insubsequent chapters13 3Costfactorsforthemainelementsofthewastemanagementsystem14 3.1Collection of mixed/residual waste143.2Municipal waste transfer273.3Landfilling of waste323.4Separate collection of recyclables403.5Composting of waste513.6Anaerobic digestion613.7Sorting and material biological treatment of residual waste65 4 Costsoftheentirewastemanagementsystem75 4.1Individual versus regional provision of services and the effectof economies of scale754.2The effect on costs of changing waste management objectives76 5AICanalysisformunicipalwastemanagement82 5.1Introductory comments825.2Average incremental cost approach to calculating annual revenuerequirements a