Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized nigeria private sector participation in solid waste management activities in ibadan with support from ey & egipe sarl copyright © 2014 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank rights and permissions with external contributions. The findings, interpre- The material in this work is subject to copyright. tations, and conclusions expressed in this work do Because The World Bank encourages dissemina- not necessarily reflect the views of The World Bank, tion of its knowledge, this work may be reproduced, its Board of Executive Directors, or the govern- in whole or in part, for noncommercial purposes as ments they represent. long as full attribution to this work is given. 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Photo credits: Farouk Banna, Ivan Bruce | 3 acknowledgments This report was commissioned by the Public, Pri- The team gratefully acknowledges the comments vate Infrastructure Advisory Facility (PPIAF) at the and support provided by Oyo State Government, World Bank Group, in collaboration with the World under the guidance and leadership of Governor Bank’s Social, Urban, Rural & Resilience Global Abiola Ajimobi, and in particular Professor Ademo- Practice. This project was led by Salim Rouhana la Ariyo, (Chief Technical Adviser to the Governor (Senior Urban Specialist) and benefited from con- on the IUFMP), Dayo Ayorinde (Project Coordinator, tributions from experts and specialists in Solid IUFMP), and the support staff of the project imple- Waste Management and support from staff focused menting unit of the IUFMP. In addition the team on Disaster Risk Management from the World Bank thanks Joseph Alabi, (General Manager, OYOW- Group. The report was supported from a team from MA) and his team for their engagement and open- Ernst & Young and Egipe SARL under the guidance ness that heavily informed this report. of Adrian Tan (Senior Manager Ernst & Young) and The study gained valuable inputs from World Bank a core team of comprised of Alexis Gazzo (EY), colleagues that provided peer reviews from variety Ayodeji Ogunyemi (EY), Gina Anderson (EY), John of offices and experts including Paul Kriss (Lead Okoronkwo (EY), Omonye Akhigbe (EY), Oyinda- Urban Specialist), Frank Van Woerden (Lead Envi- mola Oluyombo (EY), Raoul Grela (Egipe SARL), ronment Engineer) and Cesar Vargas (Investment Florentin Bulot (Egipe SARL), Salma Sabour (Egipe Officer, IFC). SARL). The report was supported by training work- shops, and research that was undertaken by Em- This report was sponsored by PPIAF of the World manuel Badejo, Mussa Dankwah. Bank Group and supported by the PPIAF team Bailo Diallo (Regional Program Coordinator) and Fatouma The report benefited from legal guidance from legal Toure Ibrahima (Senior Program Officer) and Sath- firms Ajumogobia & Okeke, and Pinsent Masons. eesh Kumar Sundararajan (Senior Infrastructure Fi- The study benefitted from guidance from numerous nance Specialist) World Bank colleagues, in particular Farouk Banna Thanks also to Amani Dargham for her editorial and (Urban Specialist Solid Waste Management), Claire graphic design inputs to finalize the report. Markgraf (Solid Waste Management Consultant), Thierry Martin (Senior Solid Waste Management Expert), Dina Ranarifidy (Urban Specialist), and Ivan Bruce (Urban Development Consultant). 4 | World Bank - Private Sector Participation in Solid Waste Management Activities in Ibadan, Nigeria abbreviations and acronyms CBO – Community Based Organization MPPUD – Ministry of Physical Planning & Urban Design CDM – Clean Development Mechanism MRF – Materials Recovery Facility CWG – Collaborative Working Group on Solid Waste Man- MSW – Municipal Solid Waste agement in Low- and Middle-income Countries NESREA – National Environmental Standards & Regula- DBFO – Design, Build, Finance and Operate tions Enforcement Agency DBO – Design, Build and Operate NAIF – Nigeria Infrastructure Advisory Facility EHOs – Environmental Health Officers OSEPA – Oyo State Environmental Protection Agency EIA – Environmental Impact Assessment OSG – Oyo State Government EPC – Environmental Pollution Control OYOWMA - Oyo State Solid Waste Management Authority ESEA – Environmental Sanitation Enforcement Agency PAYT – Pay-As-You-Throw ESL – Environmental Sanitation Law PPE – Personal Protective Equipment EY – Ernst & Young PPIAF – Public Private Infrastructure Advisory Facility GDP – Gross Domestic Product PPP – Public-Private Partnerships GIS – Geographical Information System PSP – Private Sector Participation GPS – Global Positioning Service RDF – Refuse Derived Fuel GTZ – German Agency for Technical Cooperation SIP – Sustainable Ibadan Project HSE – Health, Safety and Environment SWM – Solid Waste Management IUFMP – Ibadan Urban Flood Management Project WB – World Bank Group IWMA – Ibadan Waste Management Authority WSA – Waste Service Agreement LASEPA – Lagos State Environmental Protection Agency TLS – Transfer Loading Stations LAWMA – Lagos Waste Management Authority UCODEA – Urban Community Development LGAs – Local Government Areas UN – United Nations LG – Local Government UNEP – United Nations Environment Program MEH – Ministry of Environment & Habitat UNFCCC – United Nations Framework Convention on Cli- MEHL – Ministry of Environment and Habitat Law mate Change MPPL – Ministry of Physical Planning and Urban Devel- opment Law All monetary amounts are Naira unless otherwise indicated. | 5 contents executive summary 10 i. introduction 23 • context and objectives of the study 23 • expectations from this study 24 II. methodology 25 III. general information about ibadan 27 • administration and demographics 28 IV. the legal and institutional framework related to solid waste management 29 • federal level 29 • oyo state level / ibadan 30 - the oyo state ministry of environment and habitat 30 - the local governments 30 - the oyo state solid waste management authority (oyowma) 31 • operation of current contracts with private sector participants 34 • assessment of the existing legal and institutional framework 36 V. the current situation of solid waste management 37 • generation and collection 38 - Quantities of waste generated and collected 38 - Forms of waste collection 39 > Collection from public sector 39 > Private waste collectors 40 • resources and facilities of the public sector in charge 41 of solid waste management - Financial resources 41 - Human resources 44 - Equipment and vehicles 45 - Infrastructure and facilities 46 > Roads 46 > Transfer stations 46 > Facilities for the cleaning services 48 > Dumpsites 48 6 | World Bank - Private Sector Participation in Solid Waste Management Activities in Ibadan, Nigeria • resources and facilities of the private sector involved 52 in solid waste management - Financial resources 52 - Human resources 54 > Informal sector 54 - Equipment and vehicles 54 - Areas for improvement identified by the private refuse collection association 55 • assessment of the current challenges for private sector involvement 57 VI. best practices and experiences of psp in solid waste management 59 • collection of waste management fees / recovery of waste management costs 59 - Best practice recommendations 60 • governance – the role of public authorities 61 - Best practice recommendations 62 • waste management service performance 62 - Best practice recommendations 62 • incentives across the waste management value chain 63 - Best practice recommendations 63 • involving the informal sector 64 - Best practice recommendations 65 VII. optimizing psp in swm activities in ibadan 66 • external factors impacting private sector waste collection services in Ibadan 66 • general apportionment of activities between the private and the public sectors 67 - Activities best managed by the private sector 67 - Activities best managed by the public sector 67 - Activities shared and/or negotiated between public and private sectors 68 - Activities requiring the potential involvement of private waste contractors 68 • options for psp involvement in solid waste management activities in ibadan 69 - General options for psp in ibadan 69 - Street cleaning 78 - Waste collection 78 - Landfill management 78 - Resource recovery 79 - Drafting of provisions within a waste services agreement 82 VIII. recommendations and optimization plan for psp 83 • main recommendations 83 • plan psp optimization in solid waste management activities in Ibadan 85 - Assumptions 86 - Cost recovery and revenue collection 104 > Revenue collection mechanism 104 > Determining waste management costs and fees 104 CONTENTS | 7 - Contract related actions 105 > Support investment and performance-based contracts 105 - Communication, education and awareness-raising 106 - Enforcement of waste management regulations 106 - Investing in waste management