Page 72 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects
P. 72

This project is a municipal PPP: the management of municipal solid waste is a municipal competence
            and the municipality of Mamou decided to delegate it to a private actor. In Guinean law, and in
            accordance with the 2017 PPP law, this is a delegation of public service, in the form of a concession.
            The direct contribution of the municipality is around 16 per cent of the cost of the project (through
            transfer to the SPV of two dump trucks and provision of land). The municipality is the ultimate
            beneficiary of the UNCDF grant. In other words, it is as if the municipality is subsidizing the SPV a
            total of USD 100 000. Thus, the municipality's contribution amounts to USD 142 781 (54 per cent
            of the total project cost).

            A six-month pilot phase was launched in January 2021 to test model assumptions and the effectiveness
            of the approach (communicate, educate, raise awareness, involve and give responsibilities to the
            citizens) and obtain reliable data. More than 600 households subscribed to the waste-collection
            and transportation service, confirming the willingness of citizens to pay USD 2 to 2.5 per month
            for an improved service. The possibility of covering more households than expected is being
            considered as it seems possible.


            Observations


            •  Structuring of this transaction provided a close-up view of the daily functioning of a municipality
                in Guinea and the constraints it faces across its cities. This project can serve as the basis for
                a national programme to strengthen the capacities of local authorities and to put in place
                mechanisms for local development financing.

            •  Social innovation (changing the way things are communicated; involving beneficiaries from
                the beginning of the process) allows considerable results to be achieved with few means. The
                launch of the pilot phase of the project that uses this approach is producing good results:

                o  More than 600 households subscribed to the service of collection and transportation of
                   waste, knowing that the objective of the first year was to cover at least 2 500 households.

                o  More than 1 000 subscription requests were received (the pilot project team can host up to
                   600 households).


























             60  Compendium of practices on innovative financing for SSC projects | January 2023
   67   68   69   70   71   72   73   74   75   76   77