Background

In 2012, Kampala Capital City Authority (KCCA) took steps to improve the solid waste management (SWM) services in the city through engagement of the private sector and the possible commercial utilization of refuse products and landfill gas through a Public Private Partnership (PPP) project. The overall objectives for KCCA are to improve the efficiency of SWM collection and management in Kampala, reduce the fiscal burden of building new infrastructure, and institute a transaction structure that assures sustainability of the PPP project. The International Finance Corporation (IFC) was hired to provide the Transaction Advisory Services.

The feasibility study by IFC established the following issues:

Private operators were providing door-to-door collection in more affluent communities (one third of waste collected) and charge the households and businesses directly for this service (typically 20,000-30,000 UGX per month for weekly collection);
There was no exclusivity for operators in designated collection zones and several operators had customers on the same street resulting in inefficient operations and illegal dumping of waste in communities;
All collected waste is disposed at Kiteezi, which is almost filled up. Apart from the imminent lack of capacity and operational and environmental issues, Kiteezi (which opened in 1993) was not designed in accordance with international best practice.
The ISWM project is being implemented in two phases. Phase 1 of the project has involved streamlining collection and transportation of municipal solid waste and Phase 2 shall involve procuring a private company for treatment and final disposal of the municipal solid waste.

Waste Collection and Transportation

In Phase 1, the city was subdivided into 7 collection zones (see attached map).To date, procurement of companies that shall be in charge of collecting and transporting waste (from the various zones) to the landfill was completed and PPP agreements with the successful concessionaires were signed (between 11th and 16th June 2015). These are the only companies that have exclusive rights to collect garbage in these areas. These concessionaires are:

 

Zone Concessionaires/Company
2 M/s Kampala Solid Waste Management Consortium:
3 and 4 M/s Homeklin (U) Limited
5 and 7 M/s Nabugabo Updeal Joint Venture

the city of Kampala was subdivided into 7 collection zones

Waste Treatment and Disposal

In Phase II, KCCA will tender a joint concession for the existing Kiteezi Landfill and a future waste disposal site, make available the necessary land for a new site for continued disposal after the end of the life of the Kiteezi site, identify and make available a site for a transfer station (possibly at the existing Kiteezi site), and ensure that all waste collected in Kampala is directed to the designated disposal facilities (as a condition of all collection licenses issued).

The operator for waste treatment will design, build, operate and maintain a sanitary landfill and waste treatment facility at Ddundu in compliance with Ugandan and international standards; close the landfill sites at the end of their useful life, provide aftercare and collect LFG (if deemed viable) on completed sections of the landfill; employ an appropriate choice of technology e.g. composting, Energy from Waste, Anaerobic Digestion, etc.; exercise commercially viable means of formalizing the work of existing informal workers on the site; and establish and operate a transfer station at a designated site if required in the service level specifications.

Already, KCCA has purchased 135 acres of land (at Ddundu) for this purpose and procured Transaction Advisory Services of the International Finance Corporation (IFC) for this forthcoming PPP contract.  We shall have an investor promotion conference in September 2016 where we will appraise the prospective investors of the opportunities in the waste management industry.

Next Steps

Source for funds to continued sensitization of both the political leaders and the public.
Continue to address the emerging issues with the concessionaires in line with the conditions of the contract
IFC to complete Transaction Advisory Services for Phase II of the project in June 2017.
IFC shall conduct an investor promotion conference in September 2016 where we will appraise the prospective investors of the opportunities in the waste management industry.
Procure, under a PPP arrangement, a private company to build, operate and transfer a waste treatment facility in Ddundu.