Case Study: Solid Waste Management (SWM) for Cleaner Cities in Nepal

Subsidy model and revenue economics • Provide $4.28 million in grant-based subsidies to five Nepalese municipalities—no repayment required, but municipalities assume the performance risk • The grant payments are contingent upon verified improvements in the service provision and collection of service fees, and are complemented with technical assistance • Subsidies to municipalities are paid based on agreed multiples of verified collection of fees from customers; as the municipalities‘ revenue increases, the OBA subsidies will gradually (over 4 years) be lowered and finally phased out entirely • By the end of the project, the municipalities will be able to sustain the SWM service with the tariff and same level of government subsidy. Source: https://openknowledge.worldbank.org/handle/10986/32192