Solid waste privatisation: no extra charges for now

Consumers will not be charged more for solid waste management services when the Solid Waste Management and Public Cleansing Act 2007 is implemented.

Solid Waste Management and Public Cleansing Corporation (PPSPA) chief executive officer, Zaini Md Nor said it would mean a drastic change in solid waste management and consumers would enjoy better services.

“The Act allows PPSPA to conduct more stringent monitoring of solid waste,” he said after opening a seminar for SWM Environment Sdn Bhd contractors in Ayer Keroh, here yesterday.

Housing and Local Government Minister Datuk Chor Chee Heung yesterday announced that the Act’s implementation on April 30 was deferred indefinitely to address some technical aspects.

Under the Act, solid waste management and public cleansing will be privatised with PPSPA taking over from local authorities in Peninsular Malaysia and Labuan.

SWM, Alam Flora Sdn Bhd and Environment Idaman Sdn Bhd will sign the concession agreement to manage solid waste collection for 20 years.

Zaini said the solid waste management contractors would be paid higher than the 20sen-RM12 for each consumer for garbage collection presently.

“The Act also requires each contractor to register with PPSPA online or visit the office so that it can monitor services provided.

” It would be done via Key Performance Indicators (KPI) like adherence to collection schedule, use of better management tools and contractors who failed would be penalised.

He said there are about 2,000 contractors nationwide and PPSPA expects 30 percent to comply with the KPI in the second year while the rest in the third.

Local authorities owe the concessionaires RM352mil for solid waste and public cleansing services last year. SWM has yet to collect RM110mil, Idaman RM4mil and the rest is owed to Alam Flora.