The purpose of this document is to elaborate a general methodology for the determination of waste tariffs in accordance with modern requirements and propose a cost recovery system that will insure the sustainability of solid waste management systems at the Municipal level. It is imperative that new or existing systems are sustainable; consequently, a methodology is needed to recover the costs associated with the services provided. A methodology is required that will result in a tariff system that can be implemented and one that will result in maximum recovery of costs. We hope this document will serve as a valuable resource for Municipal officials when determining tariffs and provide a basis for legislative or regulatory changes that will support the Government’s effort to implement tariff reforms in Georgia.
The Waste Management Code states Polluter Pays means that the producer or holder of waste, shall cover the costs of waste management;[1] It is not, however, a mandatory requirement of the law of Georgia that the total cost to the Municipality for providing waste management services be recovered directly from the producer of the waste through the tariff system. For example, grants may be received from international donor organizations by the Municipality that are given for the specific purpose of reducing the cost of providing waste management services to the socially vulnerable and therefore, the tariffs for providing these services. Another important requirement of the law requires that collected tariffs should not exceed the cost of the service.[2] Despite the fact that current Georgian law sets the maximum allowable tariffs, we recommend that the tariff limitation should be eliminated for beneficiaries of waste management services.
Historically, in most cases, tariffs have not been based on the cost of the services provided. Also, in almost all cases, tariff collection rates have been very low due to a lack of community support and enforcement practices.
[1] Waste Management Code, Chapter 1, Art. 5, Para. 2.B
[2] Law of Georgia on Local Fees, Article 121, Para. 6
For the full version of the document, please see the link below:
CENN_General Methodology for Establishing Tariffs and Cost Recovery System in Georgia_WMTR_ENG