Towards the implementation of waste collection- based businesses in Port-au-Prince

1. Towards the implementation of waste collection-based businesses in Port-au-Prince LivelihoodsTechnical Group - IFRC Tuesday 24th April Luce Perez, FRC LivelihoodsDelegate

2. AGENDA • Background • Existingactors in Haïti • Case study #1: RamaseLajan • Case study #2: SustainableRecycling Solutions • Recommendations

3. BACKGROUND • Across Haiti (but mostly in Port-au-Prince), existence of an informal system of harvesting material, mostly surrounding metals (iron and aluminum) and some plastics. • Most material collected is brought to recycling companies’ located in the surroundings of PaP, where those delivering are paid cash daily based on the type and weight of materials delivered. • Rationale for creating waste collection-based businesses: • Need ofsatellite collection points to avoid that all materials to be sold to recyclingcompanies have to bedelivered to theirmain facility.

4. AGENDA • Background • Existingactors in Haïti • Case study #1: RamaseLajan • Case study #2: SustainableRecycling Solutions • Recommendations

5. EXISTING ACTORS IN HAITI • Haïti Recycling  existing since 2005; part of G.S. Industries (largest mattress manufacturing plant); recycling company working in partnership with Executives Without Borders on the “RamaseLajan” project • Sustainable Recycling Solutions  founded in 2009 by two employees of Direct Relief International; start-up; recycling company working in partnership with CRS

6. AGENDA • Background • Existingactors in Haïti • Case study #1: RamaseLajan • Case study #2: SustainableRecycling Solutions • Recommendations

7. RAMASE LAJAN Background and concept • Partnership between Haïti Recycling and Executives Without Borders with CSS International Holdings as sponsor • Franchise model supplied by individual collectors • Standardization and professionalization of waste collection (processes, prices) • Franchise collection center owned by an entrepreneur beneficiary, employing 4-5 people

8. RAMASE LAJAN Operationalprocess 3 months

9. RAMASE LAJAN Services provided by EwB • Selection of a deserving entrepreneur beneficiary in the designated area being sponsored • Securing land use agreement for physical center location • Legal assistance for beneficiary to establish business license • Business + operations training for beneficiary • Operations training for beneficiary & his proposed staff • Pre-opening community education / promotion • One-time working capital startup grant ($1,500) • Opening-week on-site mentoring • Grand Opening publicity / advertising / crowd control • Installation of neighborhood signage • Weekly accountability monitoring, first 3 months of operations

10. RAMASE LAJAN Contractual aspects MoU License binding agreement withguarantee of prices

11. RAMASE LAJAN Social and financialbenefits • Price of purchased waste from community members • Aluminum cans: 12 HTG/pound • Ferrous metals (steel, stainless steel): 5-15 HTG/pound • Plastics (HDP, PET, LDP): 4 HTG/pound • Financial benefit for community members • Average collection capacity: 2-4hours for collecting 100 pounds of plastic • Potential volume to collect/month (2-4hours of collection, 7days/week): • 2,800 pounds – PET/HDP • 100 pounds – Aluminum cans • Monthly wage: 12400 HTG • Price of purchased waste from business owner • Reimbursement of peddler payout • + Transportation cost: 1HTG/pound • + 15% profit margin • = 5.7 HTG/pound for plastic • Financial benefit for business owner • Average volume collected/month: • 25,000 pounds – PET/HDP • 500 pounds – Colored HDP • 500 pounds – Aluminum cans • Monthly wage: 17300 HTG (427$) • Financial benefit for center employees • 200 HTG/day

12. RAMASE LAJAN Somefacts… • 4-5 jobs created for each collection center • +/- 100 jobs created among community for each collection center • 7 operating units (Port-au-Prince, Leogane, Cap Haitien) • 143,000 pounds of recyclables • Paid out over $14,000 to the communities • 10 new operating units to be opened

13. RAMASE LAJAN Pros and cons • High upfront investment from partner NGO (25,000$ for collection center + 1,500$ for upfront cash for business owner) • Guaranteed price of payout price from Haïti Recycling preventing from price increase (if it is the case according to market fluctuations) • Creation of several formal jobs/center • Standardization and professionalization of waste collection • Transparency of prices for community members • Guarantee of payout price from Haïti Recycling • Strong executive partner: EwB providing all set-up services • Sustainability favoured by franchised formal collection center and follow-up of EwB • Reduction of scope of waste removal for Government services the must conduct - making the task more manageable

14. AGENDA • Background • Existingactors in Haïti • Case study #1: RamaseLajan • Case study #2: SustainableRecycling Solutions • Recommendations

15. SRS Background and concept • SRS re-buys recyclable waste according to two models: • Informal model where individual collectors bring the waste they collected to the main facility of SRS  SRS buys directly to the individual collectors at main facility • Formal model where an entrepreneur is responsible for his collection site, rebuys waste from the community members and resells it to SRS  SRS buys directly to the entrepreneur at collection site

16. SRS Operationalprocess Depending on duration for NGO to proceed 2 weeks

17. SRS Responsabilities of partner NGO • Location of sites and possible candidates to act as Business Manager for collection centers • Preliminary screening of candidates, making sure they have some basic business experience including cash flow management and sales • Assistance with any additional training needed for the collection managers on personal financial management, savings, and planning • Training to the community about the opportunity to earn money collecting recyclable plastic in the community and where to bring it for cash • Work with the community to ensure that the collection manager is acting appropriately and purchasing the plastic for the correct amount. If applicable, a hotline will be created and visits should be made to manage any complaints from the collectors

18. SRS Contractual aspects MoU License binding agreement with minimum guaranteeprice

19. SRS Social and financialbenefits • Price of purchased waste from community members • Plastics (HDP, PET, LDP): 4 HTG/pound • Potential to extend to: • Aluminum cans: 12 HTG/pound • Ferrous metals (steel, stainless steel): 5-15 HTG/pound • Financial benefit for community members • Average collection capacity: in 1 day of collection, 50-100 pounds of plastic • Potential volume to collect/month (7days collection/week): • 1,500-3,000 pounds – PET/HDP • Monthly wage: 6,000-12,000 HTG • Price of purchased waste from SRS • Reimbursement of peddler payout • + Profit margin of 1HTG/pound • = 5 HTG/pound for plastic •  SRS picks up the waste once there is 3,000 pounds collected • Financial benefit for business owner • Average volume collected/month: • 10,000-16,000 pounds – PET/HDP • Monthly wage: 10,000-16,000 HTG • Financial benefit for center employees • Informal employees with ? wage

20. SRS Somehighlights… • 2,000,000 pounds of plastic collected • 8,000,000 HTG for community members • 2,000,000 HTG for business managers • Minimum volume of plastic to be collected to ensure sustainability of system: • 3,000 pounds/week • 3,000 pounds to be collected max by 50 people to ensure interesting income generation

21. SRS Pros and cons • Limited creation of formal jobs • Strong implication of partner NGO with SRS providing minimum set-up services • No formal collection center (unless partner NGO is willing to build one) • Lower collection capacity from site manager • Limited follow-up from SRS • Low upfront investment from partner NGO (300$ for upfront cash for site manager + 500$ for initial material) • Higher profitability for site manager (1 profit margin guaranteed, no transport cost) • Guarantee of payout price from Haïti Recycling avoiding price increase to the benefit of site manager and community (if it is the case according to market fluctuations) • Reduction of scope of waste removal for Government services the must conduct - making the task more manageable

22. AGENDA • Background • Existingactors in Haïti • Case study #1: RamaseLajan • Case study #2: SustainableRecycling Solutions • Recommendations

23. RamaseLajan vs. SRS

24. Recommendations • In a sustainability + formal jobs’ creation perspective, RamaseLajan seems to be a more adequate solution • A sustainable solution for INA ? • In a less sustainable perspective but still creating informal jobs, with strong implication from partner NGO, SRS seems to be an interesting option • A cheap option for our long-term camps ?