A comparison of two models for dealing with urban solid waste: Management by contract and management by public–private partnership

Abstract

In work, we compared two models for dealing with urban solid waste in Brazil, namely, management by contract and management by public–private partnership. Management by contract, which is widely used by the public sector (municipalities) for urban solid waste collection and disposal and for acquiring goods and services for periods not greater than 60 months, is governed by Federal Law 8.666/93. Management by public–private partnership is governed by Federal Law 11.079/04 for contracts worth more than US$11,000,000 and involves costs for the private partner and public partner. The financial return for the private partner must be clearly delineated and the contract should last from 5 to 35 years. Management by public–private partnership that involves the management of municipal solid waste is very recent in Brazil. For this reason, the comparison between the two forms of management of municipal solid waste (management by contract and management by public–private partnership) described in this work is unprecedented in this country. Both of these models are used in the municipality of São Bernardo do Campo in the State of São Paulo, Brazil. For this study, information was gathered through semi-structured interviews with public works managers in São Bernardo do Campo, with members of an Association of Recyclable Material Collectors and with managers of a company contracted by the São Bernardo do Campo city hall, and also by researching public documents provided by the city hall. The interviews with the managers of the municipality of São Bernardo do Campo, the Association and the company were held in the headquarters of each institution. The documents analyzed, such as the plan for dealing with municipal solid waste, contracts and bids were made available electronically. Analysis of the results indicated that management by a public–private partnership was more advantageous for dealing with urban solid waste than management by contract since the former provided a strong selective collection program, reduced the amount of solid waste sent to sanitary embankments, led to the recovery an area of land previously degraded by the incorrect disposal of urban solid waste and stimulated the installation of an energy recovery unit.