A. 1 This annex elaborates on the issue of costs presented in chapter one; and presents an analysis of the costs of solid waste collection, cleansing, disposal, transfer, and recycling. This discussion provides a framework for analysing the costs and advantages of private sector participation arrangements in comparison to existing services.

A.2 There was no specific field research conducted to support the development of this paper. Some information was gleaned from published references. However, most of the information was derived from the author's experience from conducting over 80 field assignments on solid waste management within developing countries during the past 17 years.

A.3 In most cities within developing countries, solid waste management costs consume from 20 percent to 50 percent of local government expenditures. Despite the high level of expenditure made on municipal solid waste management, collection service levels are low. Only 50 percent to 70 percent of urban residents receive service, and most disposal is by unsafe open dumping.