Abstract

This study looks at the implementation and financing of solid waste management in
the Philippines. It assesses how much it costs forty-one local government units
(LGUs) around the country to provide solid waste management services. It also looks
at how much revenue these LGUs, and other private waste contractors and operatives,
get from supplying these services. The study was carried out in response to a growing
solid waste management crisis in the Philippines and legislation that requires LGUs to
change their practices. Its main aim was to get information to help LGUs properly
finance and implement the government's latest waste management policies and law.
The study finds that there is generally a substantial "fiscal gap" between the amount of
money needed for waste management and the amount of revenue obtained by LGUs
from providing waste management services. However, when the total economic
benefits of providing these services were considered (these included the revenues
obtained by LGUs, earnings made by other parties and savings from avoided landfill
costs), it was found that some LGUs enjoyed positive net benefits. If LGUs could
exploit as many potential revenue streams as possible, they could narrow their SWM
fiscal gap or even go 'into the black'. The study highlights a number of possible
strategies that could be used to improve the financing of solid waste management.
These included finding alternatives to expensive private contractors and looking into
recycling as a revenue-generating activity.