Subsidy Funding | Activity Status: Closed

Nepal Output-Based Aid for Municipal Solid Waste Management

Overview

In Nepal, like many cities in the developing world— cities produce more waste than ever before, due to a spike in population and a surge in new economic activity and urbanization. Properly disposing and managing solid waste has thus become urgent for city municipalities. Although collecting, storing, and recycling solid waste can represent up to 50 percent of a municipality’s annual budget, many local governments don’t collect enough revenue from waste management services to cover these costs. GPOBA’s incentive-based approach tackled two problems related to waste management: the ineffective collection of solid waste management fees and the missed opportunity for managing solid waste sustainably. The scheme solved this by bridging the gap between the cost of delivering improved SWM services, such as capital costs and operations and maintenance costs, and the revenues that municipalities can collect for these services. Due to GPOBA support five cities across Nepal are transforming the way they manage solid waste while generating income from it and can now manage the SWM sector more sustainably.