The project
The Government of Andhra Pradesh envisions improving solid waste management infrastructure and services in the state through private sector participation.
The project would be structured on a Public Private Partnership (PPP) mode and will include:
- Secondary collection, treatment and disposal of municipal solid waste.
- Compliance with the Municipal Solid Waste Rules, 2000 on scientific treatment and disposal of solid waste by all ULBs in the country and PPP contractual provisions
Scope
The Government of Andhra Pradesh, one of the leading reform-oriented states of India, has taken up the challenge to improve the municipal solid waste management system in the state. The Andhra Pradesh Urban Finance & Infrastructure Development Corporation (APUFIDC), the designated state-level nodal agency for the JNNURM (Jawaharlal Nehru National Urban Renewal Mission) program of the Government of India, has signed a memorandum of understanding with a leading private developer to prepare detailed project reports for regional solid waste management projects for 55 municipalities (divided into around 11 clusters) under the Swiss-challenge approach. The Andhra Pradesh Infrastructure Development Enabling Act of 2001 enables adoption of the Swiss-challenge method for such projects.
APUFIDC has retained the IFC, a member of the World Bank Group, to assist them in the due diligence process and in managing the competitive bidding of the project under a Swiss-challenge process for the first cluster comprising 5 municipalities. These are:
- Kadapa
- Produttur
- Badvel
- Jammalamadugu
- Pulivendula
IFC as the lead transaction advisor would play a crucial role in developing a transaction structure that ensures sustainability of this project as well as similar future PPP projects.
Background
With the 74th amendment of the Constitution of India in 1992, municipal authorities in the country have been recognized as a third tier of government. The 12th Schedule of the Constitution makes it an obligatory duty of municipal authorities in the country to keep cities/towns clean and provide a good quality of life to its citizens. However, the services provided by the municipal authorities are inefficient, in part due to the lack of attention to operations and maintenance. Domestic, commercial, biomedical, and a variety of toxic and domestic hazardous wastes are generally disposed off improperly, causing serious health and environmental problems.
JNNURM is an ambitious program of the Government of India that encourages reforms and fast track planned development of urban infrastructural services in the identified cities. The Government provides financial assistance/grants to urban local bodies/parastatal agencies in the states, to implement infrastructure projects, through designated state nodal agencies like APUFIDC.
APUFIDC is the state nodal agency for the JNNURM funds and is mandated to enable and assist urban local bodies and urban development authorities in setting up and developing PPPs for urban infrastructure projects in the State of Andhra Pradesh.