Strategic assessment of solid waste management services and systems in Nepal Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized City-level Assessment and Draft Service Improvement Plan for Solid Waste Management For Itahari Sub-Metropolitan City Public Disclosure Authorized June 2020 Standard Disclaimer: . This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: . 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Abbreviations Abbreviations AAQ Ambient air quality AEPC Alternative Energy Promotion Center BOD Biological oxygen demand CAGR Compound annual growth rate CAO Chief Administrative Officer CRIS CRISIL Risk and Infrastructure Solutions Limited DBFOOT Design, build, finance, own, operate, and transfer DDR Detailed design report EHS Environment health and safety EPA Environment Protection Act ESA Environment and social assessment GIS Geographical information system GPOBA Global Partnership for Output Based Aid HDPE High density polyethylene HIG High income group IBN Investment Board Nepal IBRD International Bank for Reconstruction and Development IEC Information education and communication IEE Initial environmental examination ISMC Itahari Sub-Metropolitan City ISO International Organization for Standards KPI Key performance indicator KVA Kilo-volt-ampere LFG Landfill gas LIG Low income group MIG Middle income group MOFAGA Ministry of Federal Affairs and General Administration MOFE Ministry of Forest and Environment MRF Material recovery facility MSW Municipal solid waste NGO Non-governmental organization NIMBY Not in my backyard NPR Nepalese rupee NUGIP Nepal Urban Governance and Infrastructure Project iii City-level Assessment for Itahari Sub-Metropolitan City OHS Occupational health and safety OSR Own source revenue PPE Personal protective equipment PPP Public-private partnership RDF Refuse-derived fuel RESP Renewable Energy Subsidy Program RPM Respirable particulate matter SCP Secondary collection points SIIP Service and Infrastructure Improvement Plan SLF Sanitary landfill SOP Standard operating procedure SPM Suspended particulate matter SREP Scaling Up Renewable Energy Project SWM Solid waste management TLO Tole lane organization TPD Ton per day TRC Technical review committee ULL Urban local level USD United States dollar VAT Value-added tax WEMPL Waste and Enviro Management Private Limited iv Contents Contents Acknowledgements............................................................................................................. viii Executive Summary ............................................................................................................... ix 1 Background ....................................................................................................................1 1.1 Federal-level institutional arrangement for SWM ......................................................... 2 1.2 Legal provisions impacting SWM operations ................................................................. 3 1.3 Institutional and regulatory framework for SWM in Itahari ........................................ 10 1.4 Methodology of city-level assessment ........................................................................ 16 2 City-level Assessment .....................................................................................................1 2.1 Technical assessment of infrastructure and service delivery ........................................ 1 2.2 Assessment of other waste management ................................................................... 21 2.3 Assessment of municipal finances of the ISMC ........................................................... 25 2.4 Institutional assessment .............................................................................................. 36 2.5 Environmental, social and health safeguard ................................................................ 42 3 Service and Infrastructure Improvement Plan ............................................................... 46 3.1 Conceptualizing the SIIP framework ............................................................................ 46 3.2 Infrastructure improvement plan ................................................................................ 47 3.3 Strengthening financial capability ................................................................................ 57 3.4 Improvements in institutional and governance systems ............................................. 63 3.5 Private sector engagement .......................................................................................... 70 3.6 Environmental, health and safety considerations ....................................................... 76 3.7 Citizen engagement and IEC framework ...................................................................... 87 3.8 Phasing of interventions .............................................................................................. 91 3.9 Performance monitoring framework for SIIP .............................................................. 93 3.10 Conclusion .................................................................................................................... 98 Annexure A : Primary survey and field observations ........................................................... 100 Annexure B : Service delivery improvement - Details of proposed infrastructure ................. 106 Annexure C : Environment and social management plans .................................................... 116 List of tables Table 1: Key provisions of Solid Waste Management Act, 2068 (2011) .......................................... 3 Table 2: Key provisions of SWM Rules, 2070 (2013)........................................................................ 6 Table 3: Key issues in current regulatory provisions ....................................................................... 9 Table 4: Staffing of environment and disaster management branch ............................................ 13 Table 5: Sampling of primary surveys (waste and socioeconomic profiling survey) ..................... 17 Table 6: Summary of waste quantification survey........................................................................... 4 Table 7: Summary of waste characterization survey ....................................................................... 5 Table 8: Staff strength of private operator ...................................................................................... 7 v City-level Assessment for Itahari Sub-Metropolitan City Table 9: Assumption for recovery of waste at source of generation ............................................ 10 Table 10: Assessment of waste dumped in the open or burnt ...................................................... 11 Table 11: Key features of detailed design report for the proposed waste-to-energy project ...... 13 Table 12: Rates of recyclables in Itahari ........................................................................................ 21 Table 13: Summary of key concerns in existing service delivery model ........................................ 23 Table 14: Classification used for assessment of the ISMC’s financials .......................................... 25 Table 15: Details of revenue receipts ............................................................................................ 27 Table 16: Details of revenue expense ............................................................................................ 29 Table 17: Income and expense in capital account ......................................................................... 30 Table 18: Tied and untied grants ................................................................................................... 31 Table 19: Per capita income and expense assessment .................................................................. 32 Table 20: Subsidy for municipal waste-to-energy projects ........................................................... 33 Table 21: Summary of key issues with the ISMC’s finances .......................................................... 35 Table 22: Salient