Move to privatise LWMC functions

Committee gives go-ahead for contracting out cleanliness operation

LAHORE:

The Urban Unit has reportedly begun work on the procedure to re-privatise operations of the Lahore Waste Management Company (LWMC).

According to sources, a committee has given the green signal to privatise the primary and secondary garbage disposal functions of the provincial capital. The previous government had taken away the responsibility of keeping the city clean from the Lahore Metropolitan Corporation and formed the LWMC.

The corporation had more than 500 vehicles for the purpose, which were sold at cheap prices or gifted to local bodies in some other districts. Two foreign companies were given the contract to collect garbage for $19 per ton along with separate charges for cleaning and washing the roads.

For almost nine years, the companies continued to clean and remove garbage from the city and billions of rupees were paid to them during the period.

The management of the LWMC later decided to put the company on its own feet instead of paying in foreign exchange to the contractors.

The LWMC took over the task of cleaning and picking up garbage from the city after terminating the agreements with the foreign companies. The city needed 10,000 garbage containers, of which about 7,000 have been placed on the streets.

Out of 671 required vehicles, 250 have been purchased, adding to the company’s assets, while more vehicles, compactors, mechanical sweepers and dumpers are scheduled to arrive soon.

Sanitary workers, drivers and other staff have also been recruited.

Read  LWMC eyes Rs6b garbage tax

According to the management of the company, the shortage of employees and machinery is likely to be met by November this year, after which the sanitation system in the city will improve further. At present, the waste management company is operating itself at the primary level of cleaning localities, while the secondary work of garbage collection and disposal has been contracted out.

On the other hand, the Lahore Waste Management Company is making expenses in rupees instead of US dollars on keeping the city clean and picking up garbage. Doing the primary work on its own and giving the secondary function on contract is costing the civic company around Rs11 billion instead of the earlier cost of Rs14 billion annually.

However, despite the annual saving of Rs3 billion, a move has been initiated to re-privatise the work of the waste management company.

The sources said preparations to make the LWMC an authority had been stopped and an eight-member committee formed to prepare a report about the current situation and future plans for the company. The committee comprised officers from the finance department, metropolitan corporation, LWMC, the Urban Unit, the local government special secretary and the Lahore commissioner.

It had to submit a report regarding the future expenses, running the entire system itself or privatising it, and other issues. The sources said the committee had also given the green signal to privatise the primary and secondary sanitation systems. The Urban Unit has reportedly started work on the procedure in this regard.

Former provincial minister Mian Mahmoodur Rasheed said while speaking to The Express Tribune that even if the functions were privatised, the control would remain with the LWMC. LWMC Chief Executive Officer Rafia Haider said the Punjab government had formed the committee to decide whether to privatise the operation or not. “Whatever the government decides, we will implement it and take steps to maintain cleanliness in the city.”

She said more than 6,000 tons of garbage was being collected from Lahore daily and the standard of cleanliness had improved, while further efforts were being made for the purpose.

Published in The Express Tribune, April 11^th, 2022.