Fair competition between public and private sector

Lessons from Sweden

Weine Wiqvist, Avfall Sverige,

at the FEAD Conference, Paris 19 September 2008

AVFALL SVERIGE – SWEDISH WASTE MANAGEMENT

• Avfall Sverige - Swedish Waste Management is an organisation in the

Waste Management and Recycling Sector

• We have 400 members, primarily within the public sector, but also private

enterprises

• We are aiming towards an environmentally sound and sustainable waste

management, for the benefit of society

AVFALL SVERIGE – SWEDISH WASTE MANAGEMENT

• We create networks, provide information and influence Decision Makers

• Our members are responsible for municipal waste management and

provide services for other waste categories

• Our members represent an important part of the societal infrastructure

AVFALL SVERIGE – SWEDISH WASTE MANAGEMENT

• Our members employ 12 000 people and account for a total annual

turnover of 1,32 billion €

• Together with households and companies, we carry out one of Swedens

most important tasks through ”Swedens largest environmental

movement”

THE MARKET

Municipal Waste Non Municipal Waste

RESPONSIBILITIES

Municipal

Public

Waste HolderProducers

PUBLIC RESPONSIBILITY

Planning Local regulations

Financing Charging

Information Operation

PUBLIC OPERATION

In-house

Ex-house

Public Departement

Public (municipal) Company

Regional cooperation

PPP/IPPP

Concessions

Contracts

FAIR COMPETITION CONTRACTS OPPORTUNITIES:

• Joint procurement recommendations (Avfall Sverige, Swed. Association

of Local Authorities, The Haulers Association)

• Increased competition, new procedures & technology

Hurdles:

• In-house competitors

• Private monopolies

• Selection procedures

• Over-time changed contracts

• Long-time public knowledge

MUNICIPAL WASTE OPERATION IN SWEDEN *

Collection Recovery and disposal

In-house

Public contracts to Private CompaniesEx-house

* estimated market share

Public contractsmainly to

Public sectorEx-house

SWEDISH CONDITIONS

• Public sector owns and operates the larger majority of capacity for

biogas, composting, energy from waste (incineration) and landfill

because of tradition and connections to the infrastructure for energy

supplies

• Producers contracts both to private companies and public sector

• A few larger private companies dominates collection services

THE TWO TIER ROLE OF PUBLIC IN-HOUSE OPERATORS

Always

- responsible operator for responsible municipal waste

and sometimes

- market competitor for non-municipal waste

but rarely

- only competing for the market

NON-MUNICIPAL WASTE MARKET*

• In-house operators are active on the market especially for recovery and

disposal of waste

• The market would collapse without public capacity involvement

Public sector

Private companies

Collection Recovery and disposal

* Estimated market share

FAIR COMPETITION CONDITIONS

• Same VAT rules apply

• Same labour rules apply

• ROI expectations also on the public side

• Directive on transparency and separate accounting recommendations

from Avfall Sverige

TRENDS FOR THE FUTURE

• Public & Private competition will remain as long as municipal waste

management is a public responsibility

• Transparency will increase eg. VAT, labour rules et.c.

• Long term heavy investments will need different conditions (PPP, IPPP,

in-house operation) than collection service

• The waste management sector will, regardless of ownership, be

integrated to the material & energy supply industry

TRENDS FOR THE FUTURE

• Different means to reach the overall goals for the environment i Europe

CONTACT INFORMATION

AddressPhonePhone

FaxMobileE-mail

Website

Weine WiqvistManaging Director Prostgatan 2, SE-211 25 Malmö+46 40 35 66 00+46 40 35 66 05 (Direct)+46 40 35 66 26+46 70 893 15 99weine.wiqvist@avfallsverige.sewww.avfallsverige.se