Results based financing for municipal solid waste

Managing municipal solid waste (MSW) is a critical and basic urban service, but cities face numerous challenges at every stage of the MSW value chain. With rapid urbanization, MSW is growing at alarming rates, and is expected to almost triple in low and lower-middle income countries by 2025. At the same time, MSW is seriously underfunded in most developing country cities. Cities in low income countries
spend about US$1.5 billion per annum on MSW typically the largest expenditure category on municipal budgets. With an existing global annual shortfall of at least US$40 billion, MSW budgets in World Bank client cities will need to at least triple over the next 20 years. Most of this funding is needed for operating MSW services, rather than for capital investments.

Willingness to pay is generally lower for MSW than it is for water, sanitation, electricity, and cell phones.
The solid waste management value chain comprises collection, transport, and disposal with the possibility for waste diversion or energy recovery, as illustrated in Figure 1.1. Cities face numerous challenges (Figure 1.2), some of which are beyond the purview of the municipal government. The issue that is creating most of the challenges is the limited financial capacities to cope with the growing demand for good service
as a consequence of fast urbanization. Low income countries face the most acute challenges with their MSW systems. As a result, waste collection services are lacking or not reliable and the disposal is primarily through unsanitary dumpsites or open burning. In middle income countries on the other hand, the problem is generally less intense, except in countries where waste management has been disregarded by the government.

source:

https://openknowledge.worldbank.org/entities/publication/8782e618-df32-57b8-ae48-b6c90d25ef3f