By Joanne Chan | Posted: 29 May 2012 2138 hrs
SINGAPORE: Households in Singapore can expect to gradually pay more to have their trash collected.
The
National Environment Agency (NEA) said the move is aimed at uplifting
the waste collection industry, which is struggling with rising operating
costs while it grapples with improving service standards.
Industry
players said these challenges have been made harder by government
contracts that have locked in fees for the past seven to eight years,
with no provision for adjustments.
With several contracts up for
renewal over the next few years, the NEA, which manages the public waste
collection scheme, is looking to reshape the industry.
For the
purpose of waste management, Singapore is currently divided into nine
sectors, served by four companies. This will be reduced to six sectors,
to help companies achieve economies of scale.
Andrew Tan, CEO of
the National Environment Agency, said: "This in turn will translate into
greater affordability and at the same time, giving opportunities for
the waste collectors to invest in the capital, in the training of their
workforce and also the equipment needed to do a good job in terms of
waste collection."
Chairman of the Waste Management and
Recycling Association, Guah Eng Hock, also pointed out that waste
collection companies are required in their contracts to have a
recyclable sorting facility in each sector. He said that with the larger
sectors, companies will be able to enjoy greater economies of scale.
A standard waste collection fee will also be introduced.
Today, households pay as little as S$4.03 per HDB flat, or as high as S$22.50 for a landed home.
Prices
also differ between estates. For example, HDB flats in the city area
currently pay S$4.03, while those in Pasir-Ris and Tampines fork out
S$6.87. The difference in pricing is due to separate contracts being
called for each sector, subjected to open bidding.
Moving
forward, all households will pay a "uniform fee" - depending on whether
it is an HDB flat or landed property. The fee will be derived from the
weighted average of successful tender bids submitted by public waste
collectors.
The first to come under the new fee structure will be households in Pasir-Ris, Tampines and Bedok.
From July, HDB properties in those areas will pay S$7, while landed homes will pay S$23.19.
The
NEA said households would have had to pay more, if the new uniformed
fee structure was not applied. The new uniformed fee structure will be
progressively rolled out to the rest of Singapore by 2015.
In
return for higher fees, waste collection companies will have to meet
higher service standards. This includes having quieter and cleaner
vehicles, and responding quicker to public feedback.
Companies will also have to provide better incentive schemes to encourage households to recycle.
Singapore's
only landfill on Semakau island is currently at half its capacity, and
is expected to run out of space by 2040. Thus, recycling remains a key
strategy for managing waste in Singapore and the government hopes that
consumers and businesses will start at the source - by sorting their
recyclables from other waste.
Singapore's recycling rate currently stands at 59 per cent - a long way from its long-term target of 70 per cent.
-CNA