News • 07 September 2003

Public subsidising waste disposal at Lm1.2 million yearly

Developers to pay for waste to be created before development

Julian Manduca
The public is subsidising the disposal of construction and demolition waste to the tune of 83 cents per tonne, MaltaToday has learned.
While those that create waste pay the government 35 cents for its disposal, the government pays the companies that were awarded the tender for disposal Lm1.18 per tonne net of VAT.
Since about 1.5 million tonnes are disposed of annually, the bill to be footed by the government will amount to about Lm 1,245,000 per annum.
In a strange twist the company that was awarded the tender for the disposal of construction and demolition waste sometimes creates waste of its own accord and, while it too pays the government 35 cents per tonne for its disposal, it receives Lm1.18 per tonne as part of the tender agreement to dispose of the waste.
Polidano Brothers with its partners German company, SWR Co Ltd were awarded the tender three days before the elections.
The tender was won after only three consortiums were short-listed, the other two being one led by AX Holdings, that has contested the tender decision in court, and another that withdrew from the contest.
Anybody wanting to dispose of construction waste is duty bound to take it to Polidano Brothers’ quarry and must pay the government 35 cents per tonne for its disposal and recycling.
Polidano is itself in the construction industry and while most of its work is done on behalf of third parties, the company is also involved in building development and creates waste.
The more waste Polidano creates the more it will be paid by the government, but it is not necessarily a good deal for the company.
MaltaToday spoke to Polidano spokesperson Boris Farrugia who questioned why his company would like to pay 35 cents for waste created when its profit margin on disposing the waste was lower: "Does it make commercial sense to the group accounts? Polidano uses environmental accounting to increase its efficiency and minimise its costs."
With anything up to one and a half million tonnes of construction and demolition material going to waste yearly, the six-year contract could be worth anything up to Lm 10 million. That amount would be reduced somewhat as some construction and demolition waste will be needed at Maghtab, or whatever replaces it, to be mixed with domestic waste.
Contacted by MaltaToday, WasteServe’s Ing Chris Ciantar said the Lm1.18 "reflected the true cost of waste disposal."
Polidano and its partner have been asked to recover and recycle four percent of the waste increasing to 16 percent by the end of the contract a target which falls far short of that contemplated in Malta’s Solid Waste Management Strategy adopted by government and prepared by EU approved consultants. That strategy had stipulated that by 2005 waste arisings were to be reduced by 20 percent, 60 percent of the rock was to be recovered as well as 50 percent of mixed inert waste from construction and demolition.
Boris Farrugia told MaltaToday that recycling of construction waste had started but was not in a position to indicate how much is being recycled. "the recovery of construction, demolition and excavation waste takes various forms, namely crushing hard stone for gravel, some soft stone for ‘torba,’ - the filling beneath the roof screed and beneath tiles – and also extracting the metals from the waste."
Asked whether he believed the charge of 35 cents per tonne was enough to discourage waste creation Farrugia said: "C&D waste is a precious resource for Malta and cannot be called waste. It is necessary to heal the gaping holes in the countryside using the scarce resource in a wiser and controlled way to increase an even more scarce resource, land. Holland is a fine example and the Malta Resources Authority should be looking into this."
Queried about the recycling targets Ciantar said: "To attain the percentages as stipulated in the Strategy we rely on incentives. To do this, the Strategy envisages that the Development Planning process be upgraded.
"It is proposed that the granting of development permits be linked to a system whereby prospective developers - hence waste generators - will be obliged to indicate their waste management plan, that is, reuse, reduce and recycle schemes, methods of disposal, etc.
"Prior to the issue of this permit the developer should be obliged to pre-pay for the processing and disposal fees. With this arrangement, waste generators will have an incentive to minimise waste at source. In their waste management plans, waste generators will identify the quantities of waste produced and how it is planned to manage it. Based on the quantity of waste to be disposed, the waste producer will be obliged to pay for it in advance."
Ciantar believes the system to be introduced will cut down on waste generation: "The gradual introduction of the producer responsibility as envisaged in the Strategy shall ensure that all producers shall be encouraged to decrease in their waste generation."
Julian@maltamag.com