Turkey - Antalya Solid Waste Management

Report No. PIC4951 Project Name Turkey-Antalya Solid Waste Management Region Europe and Central Asia Sector Solid Waste Project ID TR-PA-40865 Borrower Antalya Metropolitan Municipality (AMM) Implementing Agency ALDAS Kazim Ozalp Caddesi, Sanlar Ishani Kat 4 No. 80/13-14, Antalya, Turkey Mr. Yasar Erdogan Tel: 242-242-1609 Fax: 242-247-0328 Date This PID Prepared March 1997 Appraisal Date September 1997 Projected Board Date January 1998 1. Country and Sector Background. Solid waste management is a serious environmental problem facing Turkey today. Domestic solid waste is often disposed of in open dump sites, where garbage is left uncovered. Industrial, medical and hazardous solid waste are generally disposed of with little regard for the environment, public safety or protection of underground water. This situation is worsened every day by the rapidly increasing population and standards of living, which causes a geometric increase for solid waste generated. The largest municipalities are, however, becoming increasingly aware of these problems and are taking action to improve sector performance. These municipalities include Istanbul, Ankara, Bursa, Izmir, Izmit and now Antalya. 2. Antalya Metropolitan Municipality is a major tourism center and the largest municipality on the southern Turkish Mediterranean coast. It has a population of 500,000 and is growing at an average annual rate of 7 percent, among the highest in the country. Solid waste management is a growing problem, especially at the disposal site. All garbage, including medical waste -- which is not segregated from other wastes -- is collected by the Cleaning Works Department of the Municipality. Coastal Zone Management is also a growing problem as illegal settlements represent a large proportion (40 to 50 percent) of building construction. This uncontrolled urban growth, is highly detrimental to the environment. The proposed Solid Waste Management Project complements the Antalya Water Supply and Sanitation Project for which a US$100 million was approved on May 25, 1995. These two projects would be an important step in the implementation of the Bank's strategy in the sector, supporting projects which improve the environment, promote sustainable use of natural resources, and strengthen local institutions' capacity to carry out investment programs. 3. Objectives. The project would support AMM efforts to: (a) meet at least cost the demand for solid waste collection and  disposal; (b) develop new institutional arrangements for management of solid waste collection and disposal services and to introduce private sector participation in the operation of the services; (c) improve and sustain environmental conditions and reduce health hazards that threaten the local population and the tourism industry; and (d) improve urban environmental management in Antalya. 4. Description. The project would support the policies needed to achieve the objectives summarized above. The project will: (a) improve solid waste collection, close the existing dump site, develop a sanitary landfill on a new site and provide containers to store domestic and industrial wastes and address the management and disposal of medical wastes; (b) improve land management and pollution monitoring in the Municipal Planning, Mapping and Land Registry Departments and in the centralized laboratory as part of coastal zone management; and (c) provide technical assistance for project implementation (engineering services and project management) and institutional development (particularly training and preparation of the lease and concession arrangements for solid waste collection and disposal). 5. Financing. The project cost is estimated at US$24 million equivalent, with a foreign exchange component of US$15 million equivalent (63%), including taxes and duties estimated at about 9% of total cost. The remaining US$9 million of the project cost would be financed from the proceeds of the Cleansing Tax and from the Municipality's general revenues. 6. Implementation. The borrower would be Antalya Metropolitan Municipality (AMM). A company (ALDAS), incorporated under Turkish trade law and owned by AMM, the District Municipalities (DMs) and Antalya Water Supply and Sewerage Company (ASAT) would be responsible for project implementation. ALDAS would also oversee the operation of the services by private operators under lease and concession contracts. 7. Sustainability. The project approach supports the Government's decentralization objective in shifting investment responsibility from the government budget to municipalities, which would recover costs through user charges. The project also seeks to strengthen the local authorities responsible for provision of services. The sustainability of these benefits would depend on: (a) the successful operation of lease and concession arrangements for the provision of services; (b) ALDAS' institutional and financial capacity to carry out the investment program; and (c) the sustained willingness of municipal authorities to maintain cost recovery measures necessary to assure affordability and self-financing. 8. Lessons Learned from Previous Bank Operations. The Bank's sector experience in Turkey has been with the Cukurova Urban Development Project (Loan 2819-TU), which was approved by the Board in 1987, and the Bursa Water and Sanitation Project (Loan 3566-TU), approved by the Board in 1993. In addition, a review of the Izmir solid waste management system was carried out as part of a regional - 2-  solid waste management study under the Mediterranean Technical Assistance Program (METAP). 9. The solid waste component of the Cukurova Project was small and focused mainly on physical investments, without a significant institutional strengthening component. The Bursa Project comprises physical investments and major institutional reform, including private sector participation in solid waste collection and disposal. The Cukurova Project has not been very successful, while the Bursa Project is progressing satisfactorily. The main lessons learned from these experiences are: first, satisfactory management of solid waste collection and disposal is an activity that requires managerial and technical expertise not available within municipal administrations. This lesson has been considered in the proposed project. Second, securing land availability is a complex matter that requires close cooperation between municipal authorities and communities being affected by the project. The Antalya Municipality is expected to secure the required land shortly. And, third, specialized contractors are needed for construction and rehabilitation of landfills; hiring contractors with experience only in earthworks is extremely risky. 10. Poverty Category. Not applicable. 11. Environmental Aspects. The project is classified as "A" for the purpose of O.D. 4.01. Antalya is carrying out the environmental analysis which should be submitted to the Bank shortly. Satisfactory designs would be submitted to the Ministry of Environment and the Bank for approval before tendering. Civil works contracts would include appropriate requirements to ensure that these works are carried out in a way that minimizes any negative environmental effects. There are no resettlement issues in the project. 12. The project strives to protect the unique environmental conditions of Antalya, benefiting the local population and the tourism industry. The project is expected to generate significant environmental benefits as it would: (a) protect and improve underground water quality through sanitary disposal of solid waste; (b) improve sanitation and quality of life through improved solid waste collection and disposal; (c) improve land development through improved procedures for construction permits; and (d) improve awareness of the population about deleterious consequences of pollution through improved pollution monitoring. Where relevant, indicate how the project relates to WID, poverty alleviation, human resources development, private sector development and public sector management. 13. Program Objective Categories. The project would introduce private sector participation in the operation of municipal services and would contribute to improving environmental conditions and reducing health hazards. Contact Point: Mr. Bernardo Gomez, Task Manager The World Bank - 3-  1818 H Street N.W. Washington, D.C. 20433 Telephone No.: (202) 473-2386 Fax No.: (202) 477-1386 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. Processed by the Public Information Center week ending April 11, 1997. - 4 -