110 JAAP BROEKEMA
Role of MCH
Although the majority of the contractors is content about the way the MCH manages
the out-contracting of solid waste collection services, they also see opportunities for
improvements. Only 12 percent of the contractors are completely satisfied with the
MCH in its regulatory role. The question how the MCH could improve the system gets
a varied response. Most recommendations boil down to a more liberal contracting
approach, allowing entrepreneurs more freedom of choice and reducing government
interference with the organisation of production. Improving communication is also on
the shortlist of suggestions. Although the majority was satisfied about information
they received at the start of the privatisation campaign many would nonetheless like
to receive more feedback from the MCH in the form of advice, suggestions and
training. Another frequently cited recommendation concerns the attitude of the MCH.
According to some contractors the MCH should be more responsive to the complaints
and suggestions of the contractors Finally, some contractors would like to see the
MCH rent out trucks and equipment.
Form of privatisation
The contractors who were active in solid waste collection before September 1998 used
to work under a system of lowest tender. In principle this model allows the entrepre-
neur more room to manoeuvre. Nevertheless, all the interviewed contractors prefer the
unit system. According to them the current system allows more contractors to partic-
ipate, reduces possibilities for corruption, guarantees a fixed profit margin, and uses
standardised norms applicable to all contractors (size of area, fixed numbers of
labourers and fixed amount of waste to be collected). They unanimously agree that the
unit system is an improvement in comparison with the old system. This finding attests
to the high risk avoiding mentality among contractors They are remarkably mild in
their critique on the unit system, although some raise objections to the system of
deductions, the heterogeneity of the units, and the fixed number of labourers to be
employed. The contractors who have worked under the previous system showed some
dissatisfaction with respect to the lower profit margins and the system of deductions
(which existed before but is applied more stringently today).
Franchising as a mode of private sector involvement is not popular among contractors
Most of them are convinced that they will never be able to recover their costs from the
residents. To substantiate their view they point at the rickshaw-schemes. According to
the contractors many of those schemes have failed because residents were reluctant to
pay, despite the relatively low rates. Only one contractor (a women co-operative
society) was willing to take up a franchise scheme, provided they could select their
own areas.
Pointing at the recruitment stop for MCH labourers, the tight MCH budget, and
prevailing positive views on privatisation within MCH circles, a large majority of the