Support Measures on Financial Sustainability of The Solid Waste Management
Providing effective solid waste management (SWM) services while ensuring financial sustainability is a major challenge for municipalities in Albania. The law no. 10463, dated 22.09.2011 “On integrated waste management”, supported by Decision of the Council of Ministers (DCM) no. 319/2018, focuses on cost calculation of SWM services and includes models for calculating SWM tariffs. The adoption of the service cost calculation model is widespread, yet its regular application remains inconsistent.
Municipalities face difficulties with the service tariff setting model due to data requirements, leading to a persistent use of a flat tariff system aimed at maximizing cost recovery. Tariff collection varies, with some municipalities outsourcing to Water and Waste Water Utilities and others managing through local finance departments. A 2021 study by URI indicates that the former group is more effective in collection. Despite these efforts, the average tariff collection rate is around 59.6%, signifying a need for improvement. Additionally, most municipalities have a SWM service plan, but monitoring and evaluation processes are often not established, implemented, or are poorly executed.
