Liberalisation of municipal waste handling: compatible with sustainable practices?

Liberalisation of municipal waste handling: How are sustainable practices pursued? In the process of liberalization of public services in Europe contracting out the collection of municipal waste has surged. Research in Denmark has shown that municipalities in general have pursued a narrow policy of price reductions in stead of quality demands in both environmental and working environmental terms. A recent study showed major deficits in the capacities of the municipalities to administer qualitative requirements in the tender process and to manage the contracts as an integral part of a scheme for improved performance of municipal waste management. The study stresses the need for training and guidance of municipal administrators. Highlighting ‘best practice’ examples the study shows, however, that it is perfectly possible to end up with quality service on contract. It takes a mixture of careful design of requirement specifications in the tender material and deployment of resources to follow up on the contract and cooperate with the contractor in problem-solving. The study finds the municipalities in a key position to break the ‘vicious circle’ of renouncement of responsibility, untamed market forces and low quality performance. By assuming responsibility, setting and following up on high quality standards the tender instrument presents an additional instrument to legislation and market based means to institutionalize more sustainable practices in waste management