Private Sector

The provision of municipal solid waste services is a costly and vexing problem for local authorities everywhere. In developing country cities, service coverage is low, resources are insufficient, and uncontrolled dumping is widespread, with resulting environmental problems. Moreover, substantial inefficiencies are typically observed. One solution commonly proposed is to contract service provision with the private sector in the belief that service efficiency and coverage can be improved, and environmental protection enhanced.

This note states that Latin America's urban population has grown, and its solid waste has increased at an even faster pace. Today the region's urban areas generate about 369,000 tons a day of solid waste. Ensuring that the waste is collected and disposed of properly will require strengthening the strategic role of municipalities. The private sector already plays a big part in waste collection. But private providers could do more in waste disposal and management, helping to improve service in close coordination with local authorities.

Solid waste management (SWM) is a major environment and health hazard in the urban areas of Pakistan. The World Bank is of the opinion that as cities economies are fast growing, business activity and consumption patterns are driving up solid waste quantities. In Pakistan the collection of waste is sporadic and the disposal is poor.

Maintaining the delivery of basic urban service—including waste collection and management—is becoming a growing challenge to cities grappling with the fallout from COVID-19. Every year the world generates over 2 billion metric tons of municipal solid waste. The World Bank estimates that by 2050 annual waste generation will increase by 70 percent—to 3.4 billion metric tons. In low-income countries, the volume of  waste is expected to triple by 2050, particularly in sub-Saharan Africa.

In 2002, PPIAF supported the government of Ethiopia in the formulation of a strategy for private sector involvement in municipal solid waste management sector, including generation, collection, storage, transport, and disposal of waste. The findings were presented at four stakeholder workshops on private sector participation in the sector.