KPMG warns: fully cost-covering waste system on Bonaire would lead to exceptionally high rates
KRALENDIJK – A fully cost-covering system for waste collection and processing on Bonaire would lead to exceptionally high rates for residents and businesses in the first few years. That is the warning issued by KPMG in its independent investigation into Selibon.
According to the report, the distinction between the one-off investment requirement and the structural operating costs is crucial. If both are to be fully funded through the waste levy, very substantial rate increases are unavoidable.
KPMG therefore emphasises that the way in which the required funds are financed is ultimately a matter of administrative choice. The accounting and advisory firm does not express a view on the level of future rates, but calculates solely what resources are needed for a financially sound operation of Selibon. According to the report, actual funding can take the form of a combination of waste levies, subsidies, contributions from the Public Entity Bonaire, or other financing arrangements.
As possible alternatives, KPMG mentions external financing, an adjustment of existing levies, and even import or tourist levies. According to the researchers, all of these options have different economic effects and therefore require careful political consideration.
The report also reveals that households and businesses currently pay approximately 2.4 million dollars per year in waste levies combined. For the household and business waste streams alone, however, a cost-covering operating budget of around 4.9 million dollars is required. This represents a funding shortfall of approximately 2.5 million dollars, not including the costs of other waste streams that also need to be financed.
Figures may still change
KPMG notes that the calculations are based on the current management case and that the final costs may still change, depending among other things on future decisions regarding waste processing, permits, and the structure of the waste chain.
