KOSOVO LANDFILL
MANAGEMENT CORPORATION
(KLMC)
Opportunity for Private Sector
Participation in the Management of four
Sanitary Landfills
1
DISCLAIMER
This Investment Opportunity (“Opportunity”) document (hereafter referred to as the
“Document”) has been prepared by the International Finance Corporation (“IFC”) from
information supplied to by the Government of Kosovo (“GoK”), the Privatization Project
Implementation Unit, and other Government agencies solely for use by prospective companies
considering to participate in the management of the operations of four sanitary landfills in
Kosovo, currently operated by the Kosovo Landfill Management Company (‘KLMC”)
The Document does not constitute an offer or solicitation of an offer for a management contract,
acquisition of a stake or any type of private sector participation, neither does this Document nor
shall the information contained herein constitute an offer to invest or participate in the operations
of solid waste treatment operations in Kosovo.
Information and data contained in the present document may involve significant elements of
subjective judgment and analysis, which may or may not be correct. In particular, the document
does not contain or purport to contain all the information that a prospective investor may desire
for the purpose of evaluating an opportunity to participate in the operations of the four sanitary
landfills. In all cases, interested parties should conduct their own investigation and analysis of
the Opportunity and of the data set forth in this document.
Neither the GoK, KLMC, IFC nor any of their other representatives or agents make any
representation (expressed or implied) or warranties as to the accuracy or completeness of the data
and information contained in this document and shall have no liability for this document or for
any other written or oral communication transmitted to the recipient in the course of the
recipient’s evaluation of the investment opportunity. Neither the GoK nor the IFC will be liable
to reimburse or compensate the recipient for any costs or expenses incurred by the recipient in
evaluating or acting upon this document or otherwise in connection with the participation
opportunity as contemplated herein.
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EXECUTIVE SUMMARY
The Government of Kosovo (‘GoK”) has appointed the International Finance Corporation
(“IFC”) as its Lead Advisor for the introduction of private sector participation in the operation
and management of the four existing sanitary landfills located in Pristina, Gjiliani, Prizren
and Podujevo, as well as one transfer station, collectively referred to in following sections as
the “landfills”. It is still envisaged at this stage, that the waste collection services will remain
the responsibility of the municipalities through, at this point in time the Regional Waste
Collection Companies (RWCC).
The selection of the operator will be carried out through a competitive tender process. The
winning bidder will be expected to improve and maintain the existing solid waste treatment
infrastructure of the landfills to meet industry best practices in term of operation and
management of sanitary landfills, as well as ensuring sustainability and compliance with
current local and EU standards & requirements pertaining to the waste management sector.
The Interministrial PPP acting on behalf of the GoK will be the sole counterpart with the
Private Operator.
The Government is also willing to take on responsibilities for existing pollution in the
facilities managed by KLMC.
The key data related the landfills and market information include:
Population of Kosovo:
Population covered by the 4 landfills:
2 207 896 (Statistical Office of Kosovo)
Approx 2 million
Current waste volume treated:
190,000 tonnes/year
Total estimated remaining capacity:
Approx 15 years
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TABLE OF CONTENT
1
2
3
INTRODUCTION ................................................................................................................ 5
1.1
Government of Kosovo Objectives ............................................................................... 5
1.2
IFC support .................................................................................................................. 5
Waste Management Sector Overview ................................................................................. 6
2.1
Sector Overview .......................................................................................................... 6
2.2
Main Stakeholders ....................................................................................................... 7
2.2.1
Ministry of Environment and Spatial Planning – MESP ......................................... 7
2.2.2
Kosovo Environmental Protection Agency – KEPA ............................................... 7
2.2.3
Water and Waste Regulatory Office – WWRO ...................................................... 7
2.2.4
Kosovo Landfill Management Company – KLMC .................................................. 8
2.2.5
Ministry of Economy and Finance (MEF) .............................................................. 8
2.2.6
Local governments – Municipalities ...................................................................... 9
2.2.7
Regional Waste Collection Companies –RWCCs ................................................. 9
2.3
Recent Institutional & Sector Reform ........................................................................... 9
2.4
Waste Characterization ...............................................................................................11
PROJECT FACILITIES ......................................................................................................11
3.1
4
5
Kosovo Landfill Management Company (KLMC) .........................................................11
3.1.1
Prishtina Landfill ..................................................................................................12
3.1.2
Gjilani Landfill ......................................................................................................13
3.1.3
Prizren Landfill .....................................................................................................13
3.1.4
Podujevo Landfill .................................................................................................14
3.1.5
Transfer Station at Ferizaj ....................................................................................14
PROJECT DESCRIPTION .................................................................................................14
4.1
Project Area and Service Site .....................................................................................14
4.2
EXPECTED LIFE SPAN OF FACILITIES....................................................................15
4.3
EXPECTED SCOPE OF SERVICES ............................ Error! Bookmark not defined.
4.4
REVENUE MECHANISMS .........................................................................................17
4.4.1
Disposal Tariff paid by Regional Collection Companies .......................................17
4.4.2
Disposal Tariff paid by Users ...............................................................................17
LEGAL AND REGULATORY FINDINGS AND THE RULE OF LAW ..................................18
5.1
Waste Legislation ......................................................... Error! Bookmark not defined.
5.2
Suitability of Law for PPP’s .........................................................................................18
5.3
Legal & Regulatory Issues ............................................ Error! Bookmark not defined.
5.4
Challenges & Issues to Implementing Sustainable Waste Management in Kosovo
Error! Bookmark not defined.
4
6
TENTATIVE TIMETABLE .................................................... Error! Bookmark not defined.
1
INTRODUCTION
1.1
Government of Kosovo Objectives
The Republic of Kosovo declared its independence on February 17, 2008. By end of 2010
Kosovo had been recognized by 75 UN countries. Kosovo has become a member of the
International Monetary Fund and the World Bank Group and has been granted the status of
potential candidate by the European Union (EU).
Addressing and resolving the issue of affordable, sustainable, and environmentally secure
waste management is a priority for the Government of Kosovo (GoK). A series of important
institutional and regulatory reforms have been implemented in the past decade including,
among others, the establishment of the Water and Waste Regulatory Office (WWRO) and
the creation of the Kosovo Landfill Management Company (KLMC) which is currently
managing a large portion of the total volume of the waste disposed in the country.
The objective of the project is to introduce private sector participation in the solid waste
management sector in order to improve the waste infrastructure and waste services by
introducing industry best practices and ensuring sustainability and compliance with international
and EU standards in waste management thus preserving, protecting and improving the quality
of the environment in the country in compliance with EU and Kosovo legislation.
For the GoK, the wider objective of the Project is to assess relevant PPP structures, and after
having identified the most economically sound structures, to enter into a PPP with a private
sector counterpart. The purpose of entering into a PPP agreement is to:
 Improve the level of disposal services
 Increase capacity and efficiency
 Make optimal capital investments
 Ensure long-term financial, technical and environmental sustainability of the system,
taking into account end-user affordability constrains.
1.2
IFC support
Government of Kosovo through the Ministry of Economy and Finance (MEF) has mandated
International Finance Corporation (IFC), a member of the World Bank Group as transaction
advisor to support private sector participation and to develop and implement a PPP project in
the Solid Waste Management (SWM) sector.
As Lead Advisor to Governments on PPP transactions, IFC helps define PPP strategy, structure
PPP Project, selects and manages external specialized consultants, markets business
opportunities to investors and prepares institutional reforms.
In Kosovo, IFC mandate will be focusing on: (i) structuring a transaction under a suitable form of
Public-Private Partnership (PPP), which will attract private sector participation; and (ii) executing
an open, transparent and competitive bidding process to attract the optimal private investor to
operate and develop the landfills and transfer station managed by KLMC.
The project will be implemented in two phases: the preparation phase and the implementation
phase.
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(i)
Preparation Phase – The preparation of the transaction will include a complete
technical, legal, environmental, social, economic, and financial assessment;
identification of potential investors; the analysis of the various contracting options
available for public-private partnership; the identification of key government decisions
(including legislative changes) and the design of the transaction structure.
(ii)
Implementation Phase - The implementation phase of the transaction will include
pre-qualification of potential investors, design and oversight of the bidding process,
draft and negotiation of transaction documentation, and finally bid award process and
financial/contractual closure.
The two phases are sequential and the Government through its legal authority – PPP ISC
(Public Private Partnership Inter-ministrial Steering Committee), will make the key decisions on
the transaction structure, bidding process and transaction documentation by the end of the
Preparation Phase.
The purpose of this Preliminary Information Memorandum is to provide basic information on
the proposed transaction and to solicit interest from prospective investors along with
comments and feedback on the possible transaction structure.
2
WASTE MANAGEMENT SECTOR OVERVIEW
2.1
Sector Overview
The waste management sector in Kosovo is regulated by the central and local Government
through the Waste Law (Nr 02/L-30) and by the Water and Waste Regulatory Office ( Law
no.03/L-086) as an independent economic regulator for water and solid waste services in
Kosovo. Waste collection services are the responsibility of local government and are
provided by the regional waste companies, while waste disposal services are provided
mainly by the publicly owned Kosovo Landfill Management Company (KLMC).
According to the Law on “Water, Wastewater and Waste Service Providers”, the WWRO is
the responsible authority for: (i) licensing waste service providers, (ii) setting (approving)
service tariffs for waste services, (iii) setting and monitoring the service standards, (iv)
monitoring the performance of service providers, and (v) establishing the relationship
between service providers and customers.
The Ministry of Economy & Finance (MEF), under the “Law on Publicly Owned Enterprises”,
is the sole shareholder, on behalf of the Government of Kosovo and it principal role is to
monitor KLMC J.S.C .
Ministry of Environment and Spatial Planning – MESP - is responsible for environmental
policy, the application of laws and supervision of activities for environmental protection and
spatial planning while Municipalities, under the Law on “Local Self-Government in Kosovo”,
are responsible for organizing municipal waste management in their respective municipal
territories. Municipalities sign a Service Agreement with the relevant publicly owned regional
waste collection company that provides services in the area. There are seven such regional
waste collection companies (RWCC), owned by the local government, which provide waste
collection and transportation services.
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2.2
Main Stakeholders
2.2.1
Ministry of Environment and Spatial Planning – MESP
MESP is responsible for environmental policy, the application of laws and supervision of
activities for environmental protection and spatial planning. The MESP carries out the following
activities in the waste management sector:
- National Waste Management Strategy for waste management
- Issues licenses to private operators for waste management and keeps records and
registers of such licenses
- Approves local plans for waste management
- Implements International agreements for waste management
- Approves schemes for recovery of administrative costs associated with waste
management
2.2.2
Kosovo Environmental Protection Agency – KEPA
KEPA is a government institution that engages, through integrated environmental monitoring,
efficient system of environmental information and continuous reporting on the environmental
situation, to maintain quality of air, water, soil and biodiversity, promote use of renewable
energy sources and sustainable use of natural resources in order to ensure a healthy
environment for generations present and future in harmony with the progress of economic and
social developments.
In the waste sector the Kosovo Environmental Protection Agency is responsible for e.g.:
- Regional and municipal landfill monitoring
- Collecting and processing data for regional and municipal landfills
- Collecting and processing data for hazardous and other types of waste
- Establishing database and information system for waste management
- Drafting reports on the state of waste management, forecasts, and developments in the
waste sector
- Public information and education
2.2.3
Water and Waste Regulatory Office – WWRO
The Water and Waste Regulatory Office (WWRO) is an independent state regulator for water
and solid waste services in Kosovo. The role of the WWRO is to ensure non-discrimination and
provision of qualitative, efficient, and reliable services at fair and reasonable prices for
costumers with respect to the environment and the public health.
The WWRO responsibilities are e.g.:
- Issuing licenses to public enterprises for the provision of solid waste collection services,
and solid waste disposal services
- Approval of service tariffs for regulated services, taking into consideration that tariffs
should be fair, reasonable, and at the same time securing the financial viability of service
providers
- Monitor and enforce compliance with and sanctions against failure of service standards
for licensed service providers
- Establish and support so-called Costumers’ Consultative?
7
-
Committees in each service area- seven regions of Kosovo
2.2.4
Kosovo Landfill Management Company – KLMC
Is a l public owned enterprise for landfill management. It is the legal licensed operator for
sanitary landfills in the Republic of Kosovo. KLMC was established by Kosovo Trust Agency
(KTA) as a publicly owned company in the form of JSC under Kosovo jurisdiction.
With the new Law on Publicly Owned Enterprises (POE) which establishes a new regulatory
framework for central and local PoEs, KLMC is placed under the overall authority of the
Government of Kosovo/Ministry of economy and Finance (MEF).
The KLMC is responsible for the management of the facilities and for the final disposal of waste
in Kosovo, including landfills and transfer stations. Currently, there are four landfills under
management of the KLMC (Prizren, Gjilan, Prishtina, and Podujeva), and one transfer station
(Ferizaj).
The KLMC has responsibility to ensure that landfills are operated safely and efficiently, and that
all environmental requirements are complied with. It is also responsible for closure and aftercare of exhausted landfills and for construction of new waste disposal facilities.
KLMC is led by the chief executive under the supervision of the Board of Directors. The
company comprises 6 members of the Board of Directors and 46 staff. KLMC is responsible for
the operation and management of the landfills. In the past KLMC has employed specialist
contractors on a short-term contract basis for the operation of the landfills.
The primary activities of KLMC are:
- Sewage and refuse disposal, sanitation and similar activities.
Secondary activities are:
- Recycling of non - metal waste and scrap
Other activities:
- Recycling of metal waste and scrap
- Operation of gravel and sand pits
- Demolition and wrecking of buildings; earth moving
- Other construction work involving special trades
- Wholesale of waste and scrap
- Wholesale of other machinery for use in industry, trade and navigation
- Freight transport by road
- Packaging activities
- General (overall) public service activities
- Other service activities necessary.
2.2.5
Ministry of Economy and Finance (MEF)
Under the Law No. 03/L-087 on Publicly Owned Enterprises adopted by the Kosovo Parliament
on 13.06.2008 and promulgated by a Presidential Decree on 15.06.2008 clearly defines the
lines of authority over POEs, however, the accompanying legal sub-acts (administrative
directives and by-laws) foreseen by the law are still not designed. According to the Law on
POEs MEF is the legal owner of all Central POEs, (Article 3) including Kosovo Landfills
Management Company (KLMC). Being the legal owner of Joint Stock POEs, this ministry can
8
exercise control and decision-making authority over all Central POEs, in line with the OECD
Rules on Corporate Governance, including KLMC.
2.2.6
Local governments – Municipalities
Municipalities, , are responsible for: preparation of local plans for waste management; compiling
reports on waste management for submission to the Ministry, organizing municipal waste
management in their territories; taking part in issuing decisions for building waste management
facilities; and determining tariffs for municipal waste collection and disposal services for
enterprises for waste management.
2.2.7
Regional Waste Collection Companies –RWCCs
The waste collection, transport and disposal to the landfills (or the transfer station) are carried
out by seven Regional Waste Collection Companies. According to the Law of Public Enterprises
(2003), these companies are defined as local public enterprises. The Companies are: Pastrimi
(Prishtine Region); Ekoregjioni (Prizren Region); Ambienti (Peje Region); Uniteti (Mitrovicë
Region); Çabrati (Gjakove Region); Higjiena (Gjilan Region); and Pastërtia (Ferizaj Region).
Each company is owned by one or several Municipalities and ownership allocation is based on
the number of costumers that they have. For the services provided these companies collect fees
from costumers (households, institutions and business).
2.3
Recent Institutional & Sector Reform
Existing Waste & Environmental Legislation
Kosovo has a new waste management and environmental legislation harmonized to EU
standards. This legislation also adheres to the principles of EU legislations, and has been
drafted in cooperation with EU experts.
The completion of legal norms for waste management based on EU Directives is a priority of
Government of Kosovo (GoK).
Main waste and environmental legislation adopted by GoK are:
- Law on Waste Nr 02/L-30
- Law on Environmental Assessment Nr03/L-024
- Law on Environmental Protection Nr 03/L-025,
- Law on Amending UNMIK Regulation 2004/49 on the Activities of Water, Wastewater
and Waste Services Providers 2008/03-L086, and
Main policies, strategies and planning documents at a national level are:
- National Waste Management Strategy – under final phase of preparation
- Kosovo Environmental Strategy – completed and approved on 2003
- Kosovo Environmental Action Plan 2006 – 2010, approved on 2006
Proposed New Waste Legislation
The Current Waste Law has been amended and reviewed by GoK and is in process of approval
by the parliament of Kosovo. It must be noted that the New Draft essentially consists of the
Current Law harmonized with the latest developments in EU legislation on waste such as
Directive 2008/98/EC.
The New Draft is generally compliant with such EU Directive and that, as such, most
amendments made to the Current Law merely reflect the new provisions provided in the Waste
9
Framework Directive. Being generally compliant with the Waste Framework Directive, IFC did
not find any new provision in the New Draft which may be detrimental to the Project.
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2.4
Waste Characterization
Waste can be classified in two ways:
i) By Source:
- Household waste
- Commercial waste
- Industrial waste
ii) By Type of Waste:
- Inert waste
- Non-hazardous waste
- Hazardous waste
Municipal solid waste is defined as household waste together with non-hazardous commercial
and industrial waste which, because of its nature or composition, is similar to household waste.
Waste which is defined as hazardous, according to the European Waste Catalogue, should not
be disposed of at any of the facilities which are the subject of this transaction.
Municipal solid waste in Kosovo can be broken down into the following waste fractions:
Waste composition in Kosovo
Waste Fraction
Composition of
Kosovo
Organic waste
35.3%
Glass
21%
Wood
11%
Plastic
9.4%
Metal
9.3%
Textiles
8.2%
Paper
4.6%
Hazardous waste
1.2%
MSW,
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PROJECT FACILITIES
3.1
Kosovo Landfill Management Company (KLMC)
KLMC was first established as a company within the Kosovo Trust Agency (KTA) in 2004. By
the end of 2005, KLMC was incorporated and registered as an independent company. KLMC is
responsible for the management of facilities for the final disposal of waste in Kosovo, including
Landfills and Transfer Stations. Currently there are four landfills under KLMC management
(Prizren, Gjilani, Prishtina and Podujevo) and one transfer station (Ferizaj). All of these facilities
have been designed and constructed under a European Agency for Rehabilitation (EAR)
Grant1.
KLMC is responsible for ensuring that landfills are operated safely and efficiently and that all
environmental requirements are complied with. It is also responsible for closure and after care
of landfills when their life cycle is completed and for the development of new waste disposal
facilities.
1
There are other landfills built without EAR assistance but these landfills fall outside KPA’s and KLMC’s area of responsibility.
11
KLMC comprises 6 members of the Board of Directors and 46 staff, divided as follows:
Main office in Prishtina: 14 staff
- Landfill Prishtina: 9 staff
- Landfill Prizren: 6 staff
- Landfill Gjilani: 7 staff
- Landfill Podujevo: 4 staff
- Transfer Station Ferizaj: 6 staff
KLMC is responsible for the operation and management of the landfills. In the past KLMC has
employed specialist contractors on a short-term contract basis for the operation of the landfills.
3.1.1
Prishtina Landfill
Serves the Municipalities of Prishtina, Lipjan, Drenas, Fushe Kosova and Obiliq.
Size of area designated for the landfill: 20 ha
Population served: 730.000
Designed life time: 15 years
Total capacity: 3.5 million m³
Monthly intake: 6,000 tons
The largest landfill facility, Prishtina landfill, was built during the period 2004 to 2006 at a cost of
approximately € 3.6 million. The landfill became operational in December 2006. The landfill is
located approximately 10 kilometers west of Prishtina within an area owned and operated by
KEK, the Kosovo Energy Corporation. The landfill serves a population of approximately 725,000
within the Municipalities of Prishtina, Obiliq, Fushe Kosove and Drenas. The intake of waste at
the landfill is currently approximately 6-7,000 tons per month. The yearly intake figures for 2007
and 2008 are 61,664 tons and 80,185 tons, respectively.
The Prishtina landfill is located in a worked-out, open lignite mine pit. The current surface area
of the landfill is approximately 6-7 ha within a total area designated for the landfill of
approximately 20 ha. The landfill was built with a clay liner in order to meet engineered landfill
standards. There is no plastic liner (e.g. 2mm HDPE) which would generally be present in a
sanitary landfill constructed in full compliance with the EU Landfill Directive, 1999. No gas
collection system has been installed.
The landfill design includes a leachate collection lagoon (3,000 m3), secured by a plastic liner,
from where the leachate is to be re-circulated onto the landfill by means of a pumping system.
The natural water table at the current location lies above the bottom of the landfill, causing an
influx of water into the lake area adjacent to the landfill (and ultimately into the landfill itself) if it
is not pumped away. Provided the pumping system is properly functioning, the landfill area can
be kept dry but in the case of failure of the pumping system the water level will rise and interfere
with the waste.
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3.1.2
Gjilani Landfill
Serves the Municipalities of Gjilani, Kamenica, Viti, Novoberde, Shtime and Ferizaj (from the
middle of 2005).
Size of area: 24 ha
Population served: 250,000
Designed life time: 15 years
Total capacity:
1.2 million m³ (Phase II will double this capacity to 2.4 million m 3.
Phase II has not been lined with clay liner)
Monthly Capacity: 5.000 tons
This regional landfill is located in a small valley just south of Gjilani and it serves a catchment of
approximately 245,000 inhabitants within the Municipalities of Gjilani, Kamenice, Viti,
Novoberde, Kacanik, Shtime and Ferizaj. It was constructed under an EAR grant of € 2.6
million. The active part of the landfill (i.e. the southern part of the site), covers an area of
approximately 6 ha within an overall area of 24 ha. According to the License issued by the
WWRO, the Landfill has a total capacity of 1,200,000 m3 and a monthly intake capacity of 5,000
tons. Gjilani landfill began operation (i.e. receipt of waste) in June 2003.
The active area is lined with a clay liner in order to meet engineered landfill standards. The
design includes a leachate collection lagoon (4,000 m3), in two parts, each of which is lined with
plastic (i.e. HDPE) liner, from where the leachate is to be re-circulated onto the landfill by means
of a pumping system. As part of the initial construction some landfill gas control measures were
installed. This consisted of perforated HDPE pipes installed within a large steel pipe with gravel
surrounding the smaller HDPE pipe. The intake of waste at the landfill is currently approximately
3-4,000 tons per month. The yearly intake figures for 2007 and 2008 are 49,940 tons and
52,121 tons, respectively.
3.1.3
Prizren Landfill
Serves the Municipalities of Prizren, Suhareka, Rahovec and Malisheva.
Size of area: 25 ha
Population: 320,000
Designed life time: 15 years
Total capacity: 2.6 million m³
Monthly capacity: 3,500,000 tons
This regional landfill is located close to the town of Prizren and it serves a catchment of
approximately 317,000 inhabitants in the Municipalities of Prizren, Rahovec, Malisheve and
Suhareke. It was constructed under an EAR grant of € 2.6 million. Prizren Sanitary Landfill
began operation (the receipt of waste) in the middle of 2004. The landfill covers a surface area
of 24 ha.
The active area is lined with a clay liner and a HDPE liner in order to meet sanitary landfill
standards. Some small sections of the HDPE liner have been cut away and removed. Leachate
is collected and conveyed by gravity to a leachate lagoon (3,000 m3).
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3.1.4
Podujevo Landfill
Serves Podujevo Region
Size of area: 5 ha
Population served: 130,000
Life time: 15 year
Total capacity: 1 million m³
Monthly capacity: 700 tons
This municipal/regional landfill is located close proximity to the town of Podujevo and it serves a
catchment of approximately 131,300 inhabitants within the localities of Podujevo. It covers a
surface area of 5 ha. The landfill has a total capacity of 950,000 m3 and a monthly capacity of
700 tons. Podujevo Landfill began operation (i.e. receipt of waste) in July of 2004.
The landfill is lined with a clay liner only in order to meet engineered landfill standards. The
landfill design includes a leachate collection lagoon (2,000 m3), which is lined with plastic (i.e.
HDPE) liner, from where the leachate is to be re-circulated onto the landfill by means of a
pumping system. One of the generators for the leachate recirculation pumps is not functional.
3.1.5
Transfer Station at Ferizaj
The Transfer Station at Ferizaj has been in operation since 2004. It was constructed under an
EAR grant of € 900,000.The Municipalities of Ferizaj, Shtime, Kacanik and Hani i Elazit use the
facility. The population served is 210,120 (Table 21, KEPA, 2009). In 2008, the facility handled
19,951 tons of MSW. Waste is typically delivered to the transfer station by compaction trucks
with a capacity of 3-4 tons. Waste is unloaded to the concrete slap and from there loaded into
containers by use of a Front-End-Loader. Each container has a capacity of 15 - 20 tons, and the
truck used to transport the containers to Gjilani landfill can carry two containers.
The round trip from Ferizaj Transfer Station to Gjilani Landfill takes approximately 4 hours. The
facility can handle up to 140 tons per day. The License states that the facility will service a
population of 150,000 inhabitants with a total capacity of 50,000 tons/year and a monthly
capacity of 1,800 tons.
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PROJECT DESCRIPTION
4.1
Project Area and Service Site
KLMC owns four landfills and one transfer station in the Eastern and Southern part of the
country. In Northern and Western part two more landfills and one dumpsite are managed by the
municipalities or regional waste companies. KLMC through its facilities manages 80% of the
total volume of waste disposed across Kosovo, with improved services there is significant room
for increase in the volume of waste disposal.
Kosovo waste management system is in a unsatisfactiory condition due to the lack of
maintenance and inadequate management during the last years. The solid waste sector in
Kosovo is characterized by low levels of efficiency, hence large potential for growth, limited
private sector involvement in collection, management, and disposal, underinvestment in capital
projects and technology, and limited competition.
14
There is an immediate need for proper operation of the landfills under acceptable environmental
and technical standards and methods. The Waste Disposal infrastructure, even though recently
built by the European Agency for Reconstruction with EU funding and under EC standards, is
currently not in a very good shape. Mismanagement and bad operational practice have
deteriorated the technical conditions of the landfills in a very short period of time. There is an
immediate need to rehabilitate the existing facilities, in particular three landfills in Pristina, Gjilani
and Prizren.
Almost all (90 %) of Kosovo’s urban population have organized waste collection. Only 10% of
rural communities have organized waste collection.
4.2
EXPECTED LIFE SPAN OF FACILITIES
The total quantity of waste actually delivered to the landfills varied from 150,600 tons in 2008 to
176,743 tons in 2009. The table below shows the current amounts of waste deposited on the 4
landfills, based on the average monthly intake per landfill.
Landfill
Prishtina
Gjilan
Prizren
Podujevo
Total
Amounts of waste deposited at KLMC’s landfills
Monthly
Months of
Total current amount
intake
Operation
of waste in landfills
(tons)
(tons)
6,000
44
264,000
5,000
86
430,000
3,500
73
255,500
700
73
510,100
15,200
1,459,600
The waste generation in Kosovo will increase by approximately 60% over the 25 year period
mainly due to the increase in GDP. The waste amount for land filing will increase by
approximately 30% over the same period. It is concluded that the remaining capacity of all the
existing landfills is sufficient to receive the projected waste amounts for a period of more than 15
years taking into account all the following factors:
-
Growth in population
Growth in waste generation per capita per day due to development in GDP
Improvement of collection coverage
Improvement of collection efficiency
A gradual increase in recycling starting from 2016
A gradual Introduction of biological treatment of organic waste from 2021
15
Estimated remaining lifetime of the landfill facilities
Prishtina
Gjilani (incl. Ferizaj)
Phase I
Total capacity
Cover material
allowance
Effective capacity
Start of operation
Time in operation
Monthly load
Yearly load
Yearly load
Current amount in
the landfill
Capacity used (%)
Capacity left
Remaining lifetime
(realistic)
Prizren
(incl.
Djakova)
Podujevo
2,600,000
1,000,000
3,500,000
1,200,000
Phase I+
II
2,400,000
350,000
3,150,000
01-122006
month
49
tons
6,400
tons
76,800
3
m
128,000
tons
313,600
m3
522,700
%
17
m3
2,627,300
tons 1,970,500
120,000
1,080,000
01-072004
78
3,700
44,400
74,000
288,600
481,000
45
599,000
449,300
240,000
2,160,000
01-072004
78
3,700
44,400
74,000
288,600
481,000
22
1,679,000
1,259,300
260,000
2,340,000
01-092004
76
3,200
38,400
64,000
243,200
405,333
17
1,934,667
1,451,000
100,000
900,000
01-092004
76
300
3,600
6,000
22,800
38,000
4
862,000
646,500
9
19
14
>25
m3
m3
m3
yrs
13
16
4.3
REVENUE MECHANISMS
4.3.1
Transaction Counterpart and Risk Mitigation Measures
The PPP Unit acting on behalf of the GoK will be the sole counterpart with the Private
Operator. As part of its firm commitment to this transaction, the Government is willing to
consider appropriate risk mitigation instruments including payment and waste volume
guarantees.
4.3.2
Disposal Tariff paid by Regional Collection Companies
The revenues of KLMC are generated by tariffs charged per ton delivered by the regional
collectors to the landfills. The tariffs are identical for all regions, and have remained fixed since
the middle of 2007. The current disposal tariff is € 5.26 per ton. The minimum costs only for
operating the landfills add up to € 6-7 per ton. The government understands that under such
circumstance they will have to subsidize the sector and potentially introduce some form of
payment guarantee.
4.3.3
Disposal Tariff paid by Users
Tariffs for waste collection services are set by the Water and Waste Regulatory Office (WWRO).
The tariffs differ according to the type of customer. For household customers the tariff varies
across regions from € 3.67 in Prizren to € 4.14 per household/month in Prishtina. Separate
tariffs are established for enterprise customers and for institutions. The tariffs for enterprises
(collective containers) are higher than the household tariffs, whereby the tariffs for small artisan
or service companies or institutions are close to the household tariffs. The tariffs for small and
medium commercial and service companies are significantly higher (i.e. roughly by a factor of
2), and tariffs for large commercial, service and production companies are higher still (i.e.
approximately by a factor of 4). Services provided for special containers, servicing the
enterprises, are specified according to container volume, and are set in Euro per lift.
Based upon the WWRO 2009 Annual Report the following can be concluded:
- The revenue figures from the Regional Waste Collection Companies (RWCCs)
indicate that approximately 90% of the waste is household waste, while the
remaining 10% originates from enterprises.
- It appears that only 38% of the total populations that belong to the KLMC waste
regions are being served.
- The RWCCs billed a total amount of € 6.5 million, collected € 3.6 million, and
had costs of € 7.3 million. Consequently they had operating losses totaling € 0.8
million.
17
5
LEGAL AND REGULATORY ENVIRONMENT AND THE RULE OF LAW
5.1
Legal Framework
Preparation and endorsement of the legal frameworks is constantly progressing. Up to now, the
EU legislation is not completely transposed, as amendments and additions are still required.
Strategic frameworks for waste management are is still not completed, particularly the national
waste management strategy was announced for 2009 and is still under preparation
The two main competent authorities in Kosovo that have prepared the legislation related to solid
waste management and environment are Ministry of Environment and Spatial Planning (MESP)
and Water and Regulatory Office (WWRO).
5.2
Suitability of Law for PPP’s
Law on Public-Private-Partnerships (No. 03/L-090, dated 25 June 2009) is applicable to the
Project and is flexible enough to allow any type of contracting option (design, rehabilitate,
operatetc) for the Project.
More info on the PPP law since this is the single piece of legislation where the transaction is
based on.
18