IMPORTANT STAKEHOLDERS IN A WASTE TO ENERGY PROJECT will naturally include potential gainers and losers – all Barbadians residents and visitors, the waste managers including the entities involved in reducing, reusing and recyling, Government of Barbados and its agencies – including Sanitation Service Authority (SSA) and its staff – Barbados Light & Power (BL&P), potential external sources of waste for plant inputs and the private sector partner.
A stakeholder/distributive analysis would require a look through the lens of each stakeholder to determine how individual stakeholders, institutions and groups would be affected (positively or negatively).
As part of the project, Government would be required to consider the impact on critical stakeholders. In cases where losers cannot be accommodated within the project, direct amelioration packages may be arranged.
In such a case the boundaries and costs of the project would have to be expanded. Given a public/private partnership (PPP) arrangement, the private sector entity could meet these additional costs in the near term, but, of course, these would be included in Government’s term payments.
Some PPP projects escape the more rigorous scrutiny usually given to public sector investment projects for capital budgeting decision making as PPPs are discussed primarily with private sector entities and arrangements made under PPP Agreements.
There is a risk of premature agreements. When environmental impact assessments and social impact assessments are carried out after signature of even a preliminary agreement, other project options could be eliminated without input from the wider population and technical and community groups.
Capital budgeting by Government is usually made based on decision making criteria related to socio-economic, commercial and financial analysis of the best technical options.
Such analysis should not be relaxed because there is a plan to enter a PPP arrangement. Government is committed to managing for development results.
Some persons believe that in PPPs there is no cost to Government. In the case of the proposed waste to energy plant, there is an allocation of land resources which have an opportunity cost.
Government may also have to assist in the provision of waste material for input to the plant. The cost of establishing the plant is met by Government over time like a hire purchase plan – buy now, pay later.
The terms of the financing can determine the cost to Government in current money based on discounting planned debt service payments over the repayment period.
Those who oppose Government plans usually quote the total outlay over the repayment period which overstates the cost in today’s dollars.
Once all the risks have been addressed and the project re-defined, decision making would be expected to be based on viability at various levels: the private sector partner, waste managers, BL&P, SSA and its staff, Government (cash flow and affordability), and the overall economic rate of return to the country as a whole.
This takes on board all the net benefits costs related to establishing the plant and the gains and losses in the integrated waste management system.
Government is expected to proceed with its project proposal based on the appropriate governance procedures required for the planning and implementation of large, national development projects.
As a guide, an acceptable consultation process could include the stages set out in the Project Participation Spectrum (IAP 2005): inform the public with balanced and objective information to assist them to understand the problems, alternative, opportunities and solutions; consult to obtain feedback; involve the public to ensure their aspirations and concerns are understood and considered; collaborate in partnership with the public at every level of decision making; and empower the public to actually contribute to decision making.
In closing let us recall that Barbados is committed to the Rio Declaration 1992 which adopted Principle No. 10 which states in part: “. . . each individual should have appropriate access to information concerning the environment . . . and the opportunity for decision making . . . including information on hazardous materials and activities in their communities, and the opportunity to participate in the decision making process. States should facilitate and encourage public awareness and participation by making information widely available . . . .”
Given these assurances, we can expect to look forward to a healthy public consultation process which will guide decision making on the proposal for the establishment of a plasma gasification plant at Vaucluse St Thomas.
An appropriate public participation plan, well designed and executed would assist in reducing project risks.
Clairvair Squires is a resource economist with specific experience and post-graduate qualification in solid waste management and coastal zone management. He is a former chief of the Environment Unit of the Caribbean Development Bank and a former member of The International Panel of Experts on Solid Waste Management.
