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ESPA Engages Accra Metropolitan (AMA) and Tema Metropolitan Assemblies (TMA) on Fee fixing

The Environmental Services Providers Association (ESPA) with support from Business Sector Advocacy Challenge (BUSAC) onWednesday, 16th July, 2014 organised a one-day sensitisation workshop for officials of the AMA and TMA on the cost build-up in determining fees and charges for waste management services.

 

The workshop which was organised at the Novotel Hotel in Accra and chaired by Mr Danny A. Anang, (2nd Vice President of ESPA) was well attended by:

ESPA members

Beneficiaries from the community

 

Officials from the AMA and TMA in attendance were:

Coordinating Directors

Finance Directors

Budget Directors

Waste Management Heads

Presiding members

Members of the assemblies Executive Committee

Members of the Environment Sub Committee

Members of Finance and Administration

Members of Revenue Committee

Three presentations, one each from the AMA, TMA and ESPA consultant all aimed at arriving at economically realistic and sustainable fees and charges for waste management services were the main highlights of the workshop. All the presentations were based on the existing price escalation formula in the contracts the assemblies signed with private solid waste contractors as follows: PL/PO=0.10(LL/LL˳)+0.15(F/F̥)+0.25(CO/CO̥)+0.50 (FE/FE̥)

Where:

  • P, PO are the rates payable current and as at the commencement of the agreement respectively;
  • LL,LL̥ are the indices for Local Labour, as published by the Ministry of Road and Transport, currently and as at the date of commencement of the Agreement respectively.
  • F,F̥ are the indices for Fuel, Including Lubricants, as published by the Ministry of Road and Transports, currently and as at the date of commencement of the Agreement respectively;
  • CO,CO̥ are the indices for Combined Consumer Goods, as published by the Ministry of Road and Transports, currently and  as at the date of commencement of the Agreement respectively;
  • FE,FE̥ are the indices for Foreign Exchange, as published by the Ministry of Road and Transports, currently and  as at the date of commencement of the Agreement respectively;
  • The factor Po to be applied directly to the fees approved by the Fee-Fixing Resolution of the ACCRA METROPOLITAN ASSEMBLY for the various residential classifications as at the date of commencement of the Agreement are as follows:

 

The Objectives of the Workshop were:

  1. To create a platform for brainstorming with the major power brokers within the MMDAs structure to find a more credible basis for fixing fees and charges for waste management service delivery in Ghana.
  2. To engage all stakeholders in the public and private sectors of the waste management sub-sector to guide the pricing regime within the assemblies of fees and charges for waste management and sanitation services.
  3. To develop and agreed on a credible pricing formula in fixing fees and charges within the assemblies for waste management and environmental sanitation services.

There was general consensus that the existing fees for waste management services were not economically sustainable for private waste contractors and need to be reviewed upward.

 

Dramani Yakubu
(Research Coordinator)

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