THE EXISTING SYSTEM OF SOLID HOUSEHOLD WASTE MANAGEMENT HAS LED TO THE MONOPOLIZATION OF THE MSW SERVICES MARKET

In 2022, the agency for the protection and development of competition of the Republic of Kazakhstan conducted an analysis of the markets for the collection, export, sorting and disposal of solid waste for the period 2020, 2021 and for 8 months of 2022. As a result, competition in this market is underdeveloped and highly concentrated (62 subjects of the MSW collection and export market have a dominant position (SR-1 > 80%). 56 market entities have a monopoly position for burial and 18 market entities for sorting solid waste) due to the fact that the current system of tariff regulation is aimed at curbing tariffs, formalism on the part of M & E during the competition, as well as state intervention in the market of these services.

             As a result, tariffs are highly differentiated with a difference of 6 times, and the state continues to intervene in this market, despite the presence of a competitive environment, competitive requirements are adapted to one participant, state property is transferred to one hand (containers, special equipment, land plots), creating barriers to entering the market for other participants.

            In this regard, the antimonopoly Authority, together with the Ministry of Ecology and natural resources of the Republic of Kazakhstan, is developing a roadmap for the development of competition in order to stimulate and develop this market.

             Within the framework of the roadmap, the antimonopoly Authority proposes to revise the methodology for approving tariffs and determining the norms of waste generation, forming fair tariffs for business and the population, the criteria for selecting participants in the MSW market, the separation of the boundaries of the MSW market (by districts and sections), legislative regulation of the term of the concluded contract, as well as reduce the participation of subordinate M & E organizations in the market, thereby minimizing the monopoly on the MSW market.

            In general, as part of the analysis, 12 territorial departments identified 13 violations of the legislation of the Republic of Kazakhstan in the field of competition protection, in terms of determining participants in the MSW market without a competitive procedure and setting high requirements for participants in the competition, etc.

More details in the agency's annual report for 2022 https://www.gov.kz/memleket/entities/zk/documents/details/486951?lang=kk