Introduction > Develop Project Plan > Assess Feasibility > Identify and Select Finance Source/Instrument > Mitigate Risks > Secure Permits and Approvals > Seek Project Funding/Finance > Structure and Close Financing > Case Studies > Sri Lanka > Acknowledgements
Using a National Grant Program to Develop Composting Capacity in Sri Lanka
Organic waste management is a priority in Sri Lanka, where 62 percent of waste collected is biodegradable and the majority of urban waste is disposed of in open dumps. Prior to 2008, international aid agencies and the Sri Lankan National Government used grants to fund the construction and operation of several composting plants to address organic waste. These grants provided funding for capital costs, and operation and maintenance (O&M) costs were subsidized for a set period of time. Once the subsidies expired, the plants were no longer financially sustainable, and nearly all were abandoned.
In 2008, the Sri Lankan national government launched a $40 million national solid waste management project named Pilisaru, which provided grants to local authorities and public institutions for capital and construction costs, but excluded subsidies for ongoing O&M. Without direct subsidies for O&M, developers needed to plan for the long-term financial sustainability of composting facilities prior to construction. The Balangoda Urban Council provided the financial coverage for these O&M costs, and once the project became profitable, these costs would shift to the project. The government ensured cost recovery via a garbage tax, landfill tipping fees, and a fee for door-to-door collection (excluding source separated waste collection).
By 2013, 115 composting plants had been constructed, providing composting access to one-third of Sri Lanka’s local authorities. These facilities have a total installed capacity of 640 metric tonnes per day. They have the potential to treat 10 percent of the total waste generated in Sri Lanka and to mitigate about 30,000 tons of CO2-equivalent per year (i.e., equivalent to the emissions of 3,375,717 gallons of gasoline consumed).
Source
World Bank Group, 2016, Sustainable Financing and Policy Models for Municipal Composting.