Discussion » E-Discussion: How Can RBF Help Improve MSW Management in Emerging Economies?
Welcome to the RBF/OBA Community of Practice’s e-discussion on how RBF can help improve Municipal Solid Waste Management in emerging economies. Over the course of three days, June 20-22, 2017, the community aims to foster an open dialogue between specialists on Results-Based Financing (RBF) and Solid Waste Management. We hope to have a lively, stimulating discussion and welcome your questions and comments.
Our e-discussants are Silpa Kaza, Urban Development Specialist (Urban Global Practice (GSURR)) and Sylvestre Bea, Infrastructure Specialist GPOBA).
Discussion board guidelines: Please be respectful of our e-discussants and other e-discussion participants. Please be patient as we compile responses to your comments and questions, we will do our best to respond in a timely fashion. There are no "bad" questions, so ask away! Background materials:
In preparation for the e-discussion, we are excited to share initial findings, see presentation: Zambia Rapid Study on MSW System Presentations based on a desk review of documents. We seek feedback from RBF community and stakeholders on key questions.
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Municipal solid waste (MSW) management is a critical service provided by municipalities around the world, but is often inefficient and underperforming in emerging economies. It is estimated that cities generated approximately 1.3 billion tons of MSW worldwide in 2010, and this is expected to increase to 2.2 billion tons by 2025. The challenges many cities face regarding their solid waste management systems vary from poor waste collection services and improper waste disposal to financial sustainability amongst other issues. These challenges which are more acute in low income countries often affect the poorest and most vulnerable in a city disproportionately. Improving MSW can offer significant environmental and public health benefits which contribute to overall city livability and competitiveness. At the global level, improving MSW also contributes to climate change mitigation through the reduction of methane emissions.
The World Bank’s portfolio between 2000 and 2016 included more than 300 projects with solid waste components in all regions, representing US$4.5 billion in investments. Despite this significant portfolio, the existing global annual US$40 billion shortfall for MSW requires the global development community and countries to reconsider their approach to MSW and leverage innovative instruments and partnerships to increase its impact on the sustainability and quality of the MSW sector. In this regard, since 2012 the World Bank has been exploring the application of results-based financing (RBF) in the solid waste sector as an instrument to improve MSW services and outcomes. Results-based financing for MSW is a financial mechanism where the payment for solid waste services is conditioned to the achievement and verification of pre-agreed targets. A basic feature of RBF is that financial payments or in-kind rewards are provided to a service provider conditional on the recipient undertaking a set of pre-determined actions or achieving a pre-determined performance goal. It is a mechanism to tackle some of the biggest challenges in solid waste management including poor waste collection services, improper waste disposal, and financial sustainability amongst other issues. RBF offers opportunities to innovate in the use of development finance in the solid waste sector and to achieve results.
The main objective of this e-discussion is to stimulate a discussion amongst practitioner communities and clients on the role of RBF in improving MSW management in emerging economies, using the findings of a recent rapid study conducted by the World Bank in Kabwe, Zambia as case study. Recommendations from the e-discussion will be shared with Kabwe Municipal Council for their consideration in the quest for solutions likely to improve the management of Kabwe city’s solid waste system.
Silpa and I warmly welcome you to this e-discussion and look forward to hearing your insights on this interesting topic.
Sylvestre & Silpa