KUALA LUMPUR: The planned implementation of the Key Performance Index (KPI) on three companies awarded concessions to manage solid waste disposal and public cleansing in the peninsula could turn out to be a fiasco, says an industry source.
"Such a move is overly optimistic and without consideration for the huge financial costs," a source, who requested anonymity, told The Malay Mail.
"For example, to comply with the KPI, the concessionaires and their sub-contractors need to buy new garbage trucks that do not leak leachate and are equipped for automated garbage bins collection. These trucks cost more than RM500,000 each and to change all trucks in use now would cost more than RM5 billion.
Housing and Local Government Minister Datuk Chor Chee Heung told The Malay Mail yesterday he was confident of the smooth implementation of the full privatisation programme.
When told about the cost of the new trucks, Chor said: "I know but I am confident there will no problem."
He had earlier announce the full privatisation of solid waste disposal and public cleansing management will take effect on Sept 1, the day the Solid Waste Management and Public Cleansing Act 2007 will be enforced.
However, the three concessionaires -- Alam Flora Sdn Bhd, responsible for Putrajaya, Pahang, Terengganu and Kelantan; SWM Management Sdn Bhd in Johor, Malacca and Negri Sembilan; and Environment Idaman Sdn Bhd for Kedah and Perlis -- would be given a year's grace period before the KPI is enforced.
"In the second year, they will need to abide by the KPI, supply 30 per cent of the areas under their control with 120-litre garbage bins and new trucks, and this goes up to 75 per cent for the third year and 100 per cent by the fourth year," said Chor.
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