Infrastructure Projects Facility Technical Assistance Window (IPF TA ...

Infrastructure Projects Facility – Technical Assistance Window
Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and
Operation of Regional Landfills in Montenegro
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4.5.4 Private sector participation in waste management
According to the Law on Communal 28 the collection, transport and disposal of
municipal solid waste, may be performed by private companies as well as public
companies. According to the Law, the involvement of the private sector in
carrying out these tasks should be based on:
• transparency of the process of delegating these tasks
• relevant technical and organizational capacities of companies or entrepreneurs
• regulating effective partnership arrangements
• signing appropriate agreements with the private partner on the basis of
clearly defined relations, monitoring and control.
The legal conditions for private sector participation in solid waste management
are aimed at introducing market principles in performing the tasks of collection,
transport and disposal of municipal solid waste, allowing the promotion of
competition between public and private sectors. The intent is to foster effective
and efficient waste management systems at the local level.
4.5.5 Regulator of communal services
Each municipality has a PUC that deals, among others, with solid waste management.
The regulator of communal services at the local level is the municipality
(local self-government) in accordance higher level legislation 29 . This includes
the definition of the service area, the definition of service standards, and
the approval of tariffs (fees) for services provided. On the other hand, the relationship
between the local self-government and the PUC is governed under the
Decision of the local assembly on the establishment and organisation of the
work of the PUC. This decision is based on the Law on Communal Services
and Law on Companies 30 and in turn forms the basis of the statute of the PUC.
Performance-based contracts (or public service agreements, service level
agreements, etc.) are not applied in the field of solid waste management in
Montenegro.
4.6 Development needs
There are several areas of development needs for the solid waste management
sector, as listed below:
• Continued harmonisation of laws – in particular the “Law on waste” with
the Directive on Waste 2008/98/EC is needed, in particular with respect to
the hierarchy of waste, extended producer responsibility, preparation for
28 Official Gazette of GoM, no. 48/08
29 For example, the municipality cannot approve a location for a local or regional landfill; this falls
under the competence of the national government. The Spatial Plan of Montenegro applies in the case
of the landfill location.
30 For example, the Decision on the establishment of the Niksic PUC refers to the Law on Companies,
Official Gazette of the Social Republic of Montenegro no. 40/89 and the Law on Communal Services,
Official Gazette of the Social Republic of Montenegro no. 7/90.
.