-2-

Poverty and Human Development

1.5 The poverty profile of Grenada has deteriorated over the years, moving from a recorded incidence
level of 32.1% in 1998, to 37.7% in 2008, according to the most recent poverty study2. The greatest
incidence of poverty was recorded in the parish of St. Patrick. Approximately 56.67% of residents in that
parish live in poverty. The second largest incidence of poverty, 54.46%, was recorded in the parish of
St. Mark. Following on those two parishes were St. Andrew (44.68%), St. John (36.67%), and St.
George (35.10%). The Project site is located on the western side of St. George. At the time of the Study,
more males (39.5%) than females (36.2%) lived in poverty in the country.

1.6 Indicators from the last study, in addition to highlighting the rural concentration of poverty,
revealed that despite its increase, coping mechanisms improved, resulting in a marked reduction in level of
indigence from 12.9% in 1998, to a mere 2.4% in 2008. This reality was accompanied by a fall in the Gini
Coefficient from 0.45 to 0.37 over the decade of 1998-2008. However, despite this fall, significant
inequality exists, with the most affluent 10% of the population consuming almost one-third (29.8%) of total
goods and services, whilst the poorest 10% consume just 2.9%. Closely correlated to the high inequality is
the level of unemployment which was estimated to be 34.9%3 among the poor, 10.0 percentage points above
the national level of unemployment. At the same time, 19.2% of the non˗poor were estimated to be
unemployed. Further, 31.5% of those who were employed constituted the working poor, while the poor
constituted 36.3% of the total labour force. If poverty co-varies with unemployment, then the increased
rate of unemployment to 33.5% in 2014, may suggest an increase in poverty beyond the 2008-observed
poverty incidence of 37.7%.

PL Area

1.7 A number of communities are located within a two-mile radius of PL. These are well-established
communities which are characterised by low to middle-income households. These households derive their
income from diverse sources. The majority earn their livelihood from agriculture and fishing while others
make a living in the public, informal and services sectors, and others are self-employed. Further details of
the Macroeconomic and Macrosocial Context, including the PL area, are given at Appendix 1.1.

1.8 The unsanitary conditions at PL have compromised the community’s use of an important
recreational area (Halifax Harbour) located in close proximity. The conditions also harbour disease
vectors, particularly rats and mosquitoes. These in particular, have contributed to the recent transmission
of dengue and chikungunya illnesses which have affected large numbers of the population, including
workers on site (also waste pickers) and contributed to productivity losses. About 30 informally self-
employed waste pickers from the society’s lower quintiles currently derive their livelihood from recycling
activities at the dump. However, they face constant daily challenges including health risks and injury
resulting from the unregulated and unsystematic manner of their operations.

SOLID WASTE MANAGEMENT SECTOR ANALYSIS

1.9 Over the period 2010-13, approximately 35,000 tonnes of solid waste were generated each year in
Grenada, Carriacou, and Petite Martinique, with 96% being generated on mainland Grenada. This
represented an increase of approximately 17% from a decade earlier, compared to an increase in population
of around 3%. The per capita waste generation rate, 0.90 kg per day, is marginally below the average

2
Data from the Country Poverty Assessment report for Grenada, Carriacou and Petit Martinique (2008) conducted
by the GOGR with CDB support. On the basis of the poverty line of XCD$5,842.00 it was estimated that an annual
average income of XCD$585.95 would raise most poverty stricken individuals marginally above the poverty line.
3
Data obtained from the findings of the Labour Force Survey conducted in 2014 by CSO.
 -3-

1.1 kg/capita/day for Latin America and the Caribbean4. In excess of 50% of Grenada’s waste stream
comprises organics and biodegradables, and household waste represents about 62% of the waste disposed.

Organisation and Administration

1.10 The Ministry of Health (MOH), under the Public Health Act (Cap 263), has responsibility for
regulation of the waste management sector through the Abatement of Litter Act (1973) and the Waste
Management Act (2001) [WMA]. WMA outlines requirements for waste haulers and other waste
management service providers, including waste disposal facility operators. It provides for the issuance of
waste management licences, waste haulage permits and the management of used oil (hazardous waste), and
addresses most aspects of waste management. The Act also mandates the preparation and review on a five-
yearly cycle, of a NWMS for Grenada to guide the sustainable management of waste in Grenada 5. The first
version of NWMS was completed in 2003. It has not been reviewed to date due to the limited institutional
capacity and the scarcity of financial resources.

1.11 Established under the Grenada Solid Waste Management Authority Act (1995), GSWMA has
responsibility for the collection and disposal of residential solid waste. GSWMA is also responsible for the
operation of sites for the disposal of all non-hazardous solid waste, and reports to the Ministry of
Agriculture, Lands, Forestry and Fisheries and the Environment. GSWMA’s Organisational Chart is
presented at Appendix 1.2.

Collection

1.12 There is strong private sector participation in waste management in Grenada, and GSWMA
contracts the collection of solid waste from residential and institutional premises to private firms with a
fleet of about 35 collection vehicles. For this purpose, Grenada is divided into seven zones, each serviced
by one collection contractor that is required to provide curbside collection and collection from communal
receptacles sites in accordance with agreed standards. Where road access permits, curbside collection
occurs twice weekly. Communal receptacles are intended to serve areas where road access is limited.
GSWMA is satisfied with the performance of the collection contractors and, based on anecdotal reports,
householders are also generally satisfied with the service provided. Private sector participation transfers
primary concern for maintenance of collection vehicle fleets and staffing issues from GSWMA. GSWMA
operates three compactor trucks to service special public events and for emergency use when collection
contractors are unable to provide service. GSWMA also outsources the cleaning of streets in towns and
provides a commercial skip service using one truck. The commercial and construction sectors are required
to establish private waste collection arrangements. Excluding the GSWMA collection contracts, private
haulers deliver 35% of the waste materials handled by GSWMA at its disposal facility.

Disposal

1.13 The arrangements for waste disposal have not changed commensurately with the progressive
developments in solid waste collection over the last 15 years, principally due to limited financial resources.
There are two official landfill sites in Grenada; one on mainland Grenada, and another located on Carriacou.
On mainland Grenada, the facility currently in use is a dump site located at Perseverance, situated on the
south-western coast, about 8 kilometres north of the capital St. George’s, and 200 metres inland from the
Caribbean Sea. The dump has been in use since the 1960s, and receives all of the island’s domestic,

4
What a Waste: A Global Review of Solid Waste Management; World Bank (2012).
5
This refers to the management of “any discarded material, liquid or solid (other than foul water or sewage) from
residential, commercial, institutional, industrial and agricultural operations, including vehicles, ships and aircrafts”.
 -4-

industrial, commercial, institutional, green and ship-generated waste. Bio-medical waste generated in the
health sector is incinerated at St. George’s General Hospital and the Princess Alice Hospital.

1.14 In January 2001, a new sanitary engineered landfill was commissioned at Perseverance, adjacent
to the old dumpsite. The design of PL included six cells, referred to as Cells 1 through 6. Only Cell 1 was
initially developed. In December 2001, a landslide lead to the suspension of operations at PL, and a
resumption of operations at the old dumpsite. Landfilling subsequently continued at PL from 2005-11,
when parts of the unlined Cells 2 and 3 were also used as a dump. GSWMA proposes to revert to operating
at Cells 1 and 2 at PL until sanitary landfilling facilities become available. The location of PL is shown on
Figure 1.1.

Materials Recovery

1.15 Currently, diversion of waste at source occurs on a small scale, mainly limited to commercial
operations through activities such as the export of crushed bottles by beverage companies and the collection
of items such as cardboard boxes from supermarkets. Much of the materials recovery occurs at PL through
the work of approximately 30 waste pickers6 (23 men, 7 women) who operate informally at the dumpsite,
recovering metals and other materials for sale to exporters. As discussed at Appendix 1.3, GSWMA
proposes to introduce and enforce health and safety and other requirements for these activities at its disposal
site, in order to protect the well-being of these workers, and to ensure that their activities do not disrupt
landfilling operations. GSWMA also proposes to limit participation in this activity to existing pickers.

Financing

1.16 GSWMA is funded primarily from the collection of environmental levies applied in respect of
persons, goods and services as prescribed in the Environmental Levy Act (Cap 90B, 1997). The Levy is
applied to residential customers through charges of $5 or $10 on electricity bills. Environmental levies
are also applied to: the import of vehicles; white goods and beverage containers; visitors; ships entering
Grenada; ship-generated waste; and domestic waste haulage and tipping services. The Levy collected by
the Grenada Electricity Services Co. Ltd. (GRENLEC) through electricity bills is paid directly to
GSWMA, and the levies on visitors and marine vessels are collected and paid through the Grenada Airport
Authority and the Grenada Ports Authority. Levies on imports, collected by the Comptroller of Customs,
are directed to the Consolidated Fund, and disbursements are subsequently made to GSWMA.

Issues and Constraints

1.17 The following are among other main issues and constraints affecting the solid waste management
sector in Grenada:

(a) Inadequate Landfill Capacity: At present, Perseverance is the only site acceptable to
stakeholders for landfill operations. The old dump will exhaust its capacity to receive
waste by August 2015. The need to adopt ISWM practices to reduce the volume of landfill
waste is critical. ISWM is characterised by a hierarchy of options, including disposal,
resource recovery, and waste reduction, in increasing order of desirability.

(b) Environmental Degradation: Measurement and observation over the past 20 years have
indicated a consistent deterioration of environmental conditions in the ecosystems within

6
Waste pickers is a term used to refer to people who make a living by selling recyclables found in trash. They are
found in city streets, in the dumps, and on trucks that collect and transport to disposal locations. In Grenada, the
majority of them are found at PL.
 -5-

which the waste disposal activities have been occurring. Contaminants detected in water
samples at elevated levels included faecal coliforms, nitrates, sulphates and phosphates.
This deterioration has impacted the biodiversity of coastal and marine environment around
Halifax Harbour, resulting in the loss of social and economic functions of these ecosystems.
Conditions at the dump also foster disease vectors, particularly rats and mosquitoes, the
latter transmitting dengue and chikungunya, illnesses affecting large numbers of the
population and contributing to significant losses in productivity.

(c) Weaknesses in the Policy, Legal and Regulatory Framework: The current environment is
defined by several independent pieces of legislation. However, there remain gaps which
contribute to weaknesses in the system. Draft amendments to the Environmental Levy Act
and the Grenada Solid Waste Management Authority Act are under review by GOGR.
These amendments have not yet been placed on the legislative agenda. The absence of
regulations to support solid waste legislation limits the functioning of key aspects of these
laws. Weaknesses include:

(i) the lack of clarity about the responsibilities and authority of various parties in the
enforcement of provisions against illegal dumping and littering, particularly the
Public Health Department;

(ii) inconsistencies in the provisions relating to the Environmental Levy, including the
exclusion of businesses from payment of the Levy as applied to residential
customers through electricity bills towards waste collection and disposal services;

(iii) inadequate definition of the role of GSWMA in the physical planning and
development process.

(d) Absence of a Current Long-Term Strategy: A current strategy is required to promote and
sustain environmentally sustainable solid waste management practices.

(e) Inadequate Financial Resources: The Environmental Levy provides a good mechanism for
cost recovery, and has been relatively successful. However, the system depends on the
collection of the Levy by others, and the subsequent transfer of funds to GSWMA.
The lack of timely transfer of funds from the Consolidated Fund is the largest source of
financial strain on GSWMA.

(f) Inadequate Enforcement: Illegal dumping of waste in unapproved sites, particularly waste
generated by the construction sector, is negatively impacting the environment.

(g) Limited Institutional Capacity: GSWMA is operating without a current strategic plan
and key operational plans and procedures. The lack of effective M&E capacity, and the
limited exposure of staff to training specific to SWM, were among other weaknesses
identified by CDB staff.

(h) Weak Coordination among Agencies: The effectiveness of SWM is hindered by weak
coordination among GOGR ministries and other agencies.
 -6-

(i) Limited Public Awareness and Participation: While GSWMA promotes SWM awareness
through a range of community outreach and media initiatives, including its
Environmentally Friendly Schools Initiative (EFSI), the authority perceives a lack of
understanding among stakeholders about appropriate SWM practices.

COUNTRY’S SECTOR STRATEGY

1.18 The sustainable management of the environment has long been accorded a high priority by GOGR
through the enactment of legislation to promote environmental protection and the establishment of
implementing agencies. WMA identifies SWM objectives which are also articulated in NWMS, which
remains the principal instrument for operationalising national SWM policies. The primary objectives
encompass further regulatory development and clarification of the roles defining interaction between
GOGR agencies; enhanced institutional capacity; the implementation of sustainable waste diversion
activities; increased private sector involvement in the provision of SWM services; and operation of an
enhanced system for the payment for waste management services by users.

1.19 Grenada’s strategic vision for waste also incorporates the capture of energy contained in waste
disposal sites through the use of appropriate technology. GOGR proposes to develop a Request for
Proposals to select a partner for a waste-to-energy which will further divert waste from landfilling, though
a landfill would continue to be required. A systematic approach is being pursued in that regard.

1.20 GOGR’s comprehensive framework represents an ISWM approach7, and seeks to: reduce the
quantity of waste requiring disposal; reduce the costs for waste collection and disposal; reduce
environmental and health impacts; promote efficient use of waste resources; and ultimately, extend the
useful life of waste disposal sites. Through WMA, GOGR established a target for the reduction of solid
waste generated by five percent per decade, until a 50% reduction is achieved through source reduction,
recycling and composting activities. To date, the objectives of ISWM in Grenada remain largely unmet as
initiatives in SWM have been skewed towards the collection and disposal parts of the waste management
cycle.

LINKAGE OF PROJECT TO CDB’S STRATEGIC OBJECTIVE AND POVERTY GOALS

1.21 The current framework for SWM in Grenada was established as an outcome of the Organisation
of Eastern Caribbean States (OECS) Solid Waste Management Project, an initiative financed by CDB and
other development partners. The changes arising from CDB financing of projects in the sector in 1995
and 1999 included the development of pertinent legislation and NWMS; an improved collection process
and coverage; improved disposal arrangements; and the development of a relatively successful cost-
recovery system for SWM. Enhanced environmental sustainability through improved SWM was among
the goals identified in Grenada’s Country Strategy Paper, 2014-18, which was approved by CDB’s Board
of Directors (BOD) in May 2014.

1.22 The proposed project is consistent with:

(a) CDB’s Strategic Objective of Supporting Inclusive Growth and Sustainable Development.

(b) CDB’s Corporate Priorities to Strengthen/Modernise Social and Economic Infrastructure

and Promote Environmental Sustainability.

7
UNEP Integrated Waste Management Scorecard.
 -7-

(c) SDF8 Strategic Themes of Environmental Sustainability and Climate Change and
Inclusive and Sustainable Growth.

(d) SDF 8 theme of Capacity Building to Strengthen Good Governance.

(e) CDB’s Climate Resilience Strategy 2012-17.

PROJECT RATIONALE

1.23 The Strategy for SWM in Grenada is dated, and must be updated to reflect current technologies and
practices, particularly for waste diversion. The absence of regulations contributes to weak enforcement of
existing laws, which further undermines the administration of the SWM. It also prevents the development
of new incentive regimes for waste diversion activities. GSWMA lacks adequate financial resources,
planning, management, and operational capacity, and therefore there is a critical need to build technical
capacity and management systems. While collection services are adequate, the current disposal
arrangements are unsustainable and compromise the environment, and the use of recycling and other waste
diversion methods is minimal. The sole landfill site on mainland Grenada is expected to become unusable
by August 2015. Overall, current SWM practices do not reflect modern “best practices” and do not accord
with the long-term ISWM objectives of GOGR.

1.24 The Project proposes to develop sanitary, engineered cells at PL to provide necessary landfill space
and to avoid further degradation of the country’s environment. To ensure that the life of the landfill is
maximised, the Project will enhance the legal, policy, strategic and institutional frameworks for
implementation of ISWM to encourage increased waste diversion and contribute to increased stakeholder
awareness and participation in recycling, through increased public awareness of the benefits of ISWM and
opportunities for recycling and composting. Waste pickers, among the main actors in current waste
diversion efforts, now operate in unsanitary and unsafe conditions. The Project will provide sanitary
facilities, including a rest area accessible to the waste pickers off the site of PL, and contribute to enhanced
health and safety practices in their activities.

1.25 Although the collection operations for SWM are principally undertaken by private contractors,
GSWMA maintains a limited collection capacity to ensure that no disruption to collection services occurs.
Due to the loss of service of some vehicles because of age and maintenance requirements, this capacity has
diminished. The Project will replace a number of aged vehicles which are no longer serviceable and provide
a vehicle for use in the performance of project management functions. GSWMA also lacks key pieces of
landfill workshop equipment, including tools to adequately process tyres for disposal or recycling. The
Project will provide key pieces of equipment to support landfill operations.

2. PROJECT DESCRIPTION

PROJECT OUTCOME

2.1 The anticipated outcome of the Project is improved and sustained ISWM in Grenada.

PROJECT COMPONENTS

2.2 The Project will consist of the following components:

(a) Land: Approximately 3,700 m2 of land for civil works.