Armenia SWM Sector Assessment and Reform Plan

Investment Rating - The report does not explicitly provide an investment rating for the solid waste management (SWM) sector in Gyumri, Armenia. Core Insights - The municipal waste generation in Gyumri exceeds 30,000 tons annually, with organic waste constituting about 60% and recyclables around 20% of the total waste [17][39]. - The current waste management system is undergoing a transition, focusing on upgrading waste collection services and improving waste disposal methods [18][19]. - The financial sustainability of waste management services is a significant concern, with current waste fees being inadequate to cover operational costs [21][22][23]. Summary by Sections Executive Summary - In 2024, municipal waste generation is projected to exceed 30,000 tons annually, with organic waste being the predominant type [17]. - The waste management system is in transition, aiming to enhance efficiency through upgrades in collection and disposal methods [18]. Current Waste Management Operations - The waste collection system serves the entire population of Gyumri, with efforts to upgrade containers and collection vehicles [18]. - The waste disposal site has not been updated since the 1950s and does not meet modern engineering standards [19]. - Gyumri is participating in an EU-funded project to establish a plastic recycling system, with 240 containers for source separation [20]. Costs and Financing - The polluter pays principle is emphasized, requiring waste producers to cover the costs of waste management services [21]. - Current waste fees are insufficient, leading to reliance on community budget subsidies to cover operational costs [22][23]. - In 2023, waste fees for legal entities did not cover their share of operating costs, necessitating additional funding from other communal revenues [23]. Improved Waste Operations and Cost Implications - Four scenarios for improved waste management are analyzed, focusing on collection, disposal, and recycling [31]. - Scenario 1 suggests that upgrading the waste collection system could reduce costs by 34% [31]. - Scenario 2 proposes establishing a sanitary landfill, which could be financially sustainable without subsidies [31]. - Scenario 3 involves source separation of recyclables, which may require public subsidization if implemented before Extended Producer Responsibility (EPR) legislation is in place [31]. - Scenario 4 indicates that extensive treatment technologies are currently unaffordable, but regionalization of services could improve cost efficiency [37]. Greenhouse Gas Emissions Effects - Implementing Scenario 2 is estimated to reduce GHG emissions by approximately 429,000 tons over 15 years, with a marginal abatement cost of $36 per ton of CO2 equivalent [39]. Conclusions and Recommendations - The report recommends prioritizing the optimization of the waste collection system and establishing a sanitary landfill to improve waste management in Gyumri [38][42]. - Financial sustainability requires full cost accounting and adjustments to waste fees to cover service costs [41].