Regulatory environment for private sector involvement in solid waste collection in Ghana

Abstract

Government failures call for private sector involvement in solid waste service provision which requires government regulation. Surveys of 1,300 households, 25 private companies and five local governments were conducted in five cities in Ghana to assess the regulatory practices in solid waste collection. The results showed that there were weak regulatory practices and non-adherence to contractual obligations. Service quality and cost recovery were affected by unsigned contracts, the long period before revision of collection fees and service charges, delayed payment of subsidy (more than a year) and no interest on money delayed. These weak regulatory practices affected investment in new tracks and did not provide incentive for private sector growth and development. But a gradual well-functioning system was emerging, with two competitive bidding and signing of contracts in two cities. The solution to the problem of solid waste management hinges on adherence to formal rules, such as competitive bidding, signing of and adhering to contracts, the use of appropriate cost recovery mechanisms, and the restructuring of institutional arrangements to enforce legislation.