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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ments. The costs of debt service, however, are to be included in the calculation
of the cost recovery tariffs.
Landfill Directive Under Article 10 (cost of the landfill of waste) of the Landfill Directive, 47
“Member States shall take measures to ensure that all of the costs involved in
the setting up and operation of a landfill site, including as far as possible the
cost of the financial security or its equivalent referred to in Article 8(a)(iv), and
the estimated costs of the closure and after-care of the site for a period of at
least 30 years shall be covered by the price to be charged by the operator for
the disposal of any type of waste in that site.”
Thus, closure and after-care costs are also part of proper cost-recovery tariffs.
This portion of the tariff must be set aside to provide the financial security required
under Article 8 of the Landfill Directive 48 on the conditions of the permit,
according to which the competent authority (in Montenegro, this is the
Ministry of Sustainable Development and Tourism) must not issue a landfill
permit unless it has been demonstrated, among others, that:
“adequate provisions, by way of a financial security or any other equivalent,
on the basis of modalities to be decided by Member States, has been or will be
made by the applicant prior to the commencement of disposal operations to
ensure that the obligations (including after-care provisions) arising under the
permit issued under the provisions of this Directive are discharged and that the
closure procedures required by Article 13 are followed. This security or its
equivalent shall be kept as long as required by maintenance and after-care operation
of the site in accordance with Article 13(d). Member States may declare,
at their own option, that this point does not apply to landfills for inert
waste” Landfill Directive (1999/31/EC), Article 8(a)(iv)
Therefore, financial security must be ensured and the cost of this included in
the cost recovery tariffs. The financial security can be any kind of instrument,
such as: renewable bonds, escrow accounts, cash deposits on a special fund
designated for this purpose, etc.
In the case of Montenegro, article 66a of the Law on Waste governs the issue of
funds for landfill closure, as follows:
A waste producer shall pay all costs incurred by the disposal of waste at the landfill.
The charge rate referred to in paragraph 1 of this Article shall be defined by the
Government.
Funds for the costs related to maintenance and control after the landfill closure
shall be defined in the permit for waste disposal issued for the period which cannot
be shorter than 30 years.
Fund sources and amount for the costs referred to in paragraph 3 of this Article
shall be provided by the local self-government units that use the landfill.
47 Council Directive 1999/31/EC
48 Council Directive 1999/31/EC
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