CAPITAL AND OPERATING COSTS

A cost breakdown of main capital items and operating expenses, excluding any overheads from the Bardees local council, are summarised below.
 
Capital cost
LE
Tractor - Universal 600 42,000
Fore & Aft trailer - 7 m3 20,000
Handcarts 2,700
Worker uniforms 1,160
Total
65,860

Operating costs per month LE
Fuel 420
Labour 2,290
Maintenance 254
Capital depreciation - over 7 years 784
Total
3,748
Cost per house per month 0.55
Plastic bags  
10 per house per month 4,492
Cost per house per month 0.65
Total cost per house per month 1.20

In addition to the above, additional costs were incurred for tree planting, awareness raising programmes for local residents, alterations to existing trailers and spare parts.

SUSTAINBILITY

Throughout the project the Bardees local government unit has met all operating costs and the service is now being provided on a more cost effective basis.

Cost recovery was assessed in the social survey. This showed that 68% of the community are willing to pay for an improved waste collection service. Results showed the following:
 
Willingness to Pay for Waste Collection
Fee per month
% of Respondents
LE0.50 23%
LE1.00 27%
LE1.50-2.00 22%
LE2.50-3.00 15%
LE3.50-4.00 4%
LE5.00 or more 9%
Average Fee Per Month (LE)
Households 1.60
Shops 2.70
Clinics 7.70

It should be noted that:

  • The operating cost per household of LE1.20 per month is less than the average fee of LE1.60 per month that residents were willing to pay.
  • Some residents are already paying between LE1.5-2.0 per month to have their waste removed by a local person with a donkey cart.
  • In focus group meetings women expressed the view that fees should be adjusted to income levels.

Tractor and ‘fore and aft’ trailer in operation in Bardees

The introduction of a user fee had been agreed and this is likely to be implemented through a local NGO on the following basis:

  • Service to be operated by the NGO.
  • Fees to be collected by the NGO based on a differential between houses, shops and clinics. Household fees should not disadvantage the very poor.
  • Income to be split 50:50 between the NGO and the Council.
  • 50% income split to the Council to cover fuel, labour incentives and maintenance.
  • 50% split to NGO to cover plastic bags, fee collection and management costs.

Tree planting helped improve the visual appearance along
main streets

PREVIOUS   NEXT