THE WORLD BANK

CITY RESILIENCE PROGRAM

Request for Expressions of Interest

ANALYSIS OF FISCALLY SUSTAINABLE MODELS FOR DELIVERY OF SOLID WASTE

MANAGEMENT SERVICES IN INDONESIA

City Resilience Program

Established in June 2017, the World Bank’s City Resilience Program (CRP) is a multi-donor initiative aimed
at increasing financing for urban resilience. Investments in improved solid waste management (SWM) are
among the areas supported by CRP. The program provides specialized technical advisory services on various
planning and financial aspects of SWM, including early-stage commercial structuring for potential private
sector involvement. Additionally, CRP provides analytics on maintaining long-term financial stability for
solid waste services without undue strain on fiscal resources or leading to instability. CRP also explores
delivery strategies and design solutions for SWM that enhance the adaptability of SWM infrastructure to the
impacts of climate change and natural hazards.

Assignment Background
The World Bank is currently working with the Government of Indonesia (GOI) for preparing the Indonesia
Local Service Delivery Improvement Project (LSDP), an investment lending operation project to enhance
SWM service delivery in the country.
Indonesia has decentralized institutional responsibility and financial resources for SWM by fully devolving
the role in local SWM services to local governments (LGs). Past efforts in the SWM sector have focused on
infrastructure improvements, with less attention to resourcing LGs for competent and financially sustainable
operations. Typically, operating costs for SWM in Indonesia are funded through a combination of service fees
and general municipal revenue, while both sources are very low and insufficient.
LSDP aims to strengthen Indonesian LGs’ capacity in managing SWM services through performance-based
grants and enhancing their financing and operational capabilities. The LSDP focuses on upstream SWM
activities, including waste collection, transport, transfer, recycling, and intermediate treatment.
Objectives
The CRP collaborates with the LSDP preparation team to provide business analytics with the key objective
of identifying practical solutions to gradually reduce the funding gap and maintain the elevated service levels
established with the help of the LSDP performance grants by the time the LSDP matures.
This entails exploring revenue enhancement and cost efficiency measures to ensure the fiscal sustainability of
solid waste operations as managed by Indonesian cities. The study will focus specifically on analyzing five
pilot LSDP cities that will be selected in initial stages of the assignment.
In this context, the CRP seeks a firm or consortium of firms with specialist experience in Indonesian public
finance, including a deep understanding of subnational financial flows, capital investment planning,
operations and facilities management in the utilities sector, particularly in solid waste operations (referred to

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as the 'Consultant'), to undertake the following tasks.:
- Mapping financial flows into local government budgets in Indonesia from various sources, primarily
the national government; and analyzing the characteristics of the funds (tied/ untied; recurring/one -
time, discretionary/ for mandatory expenditure, etc.)
- Verification of the funding arrangements for SWM in the respective jurisdictions.
- Analysis of capital expenditure (CAPEX)and operating expense (OPEX) benchmarks for SWM
operations relevant to each of the five pilot cities.
- Identification of alternative cost recovery and revenue enhancement mechanisms that may help
bridge the funding gap upon maturity of the performance-based grants program.
- Identification of critical aspects of the Indonesian fiscal and regulatory environment that influence
cost recovery and revenue enhancement in solid waste management.
- Developing a management decision tool to monitor costs and revenues under a certain level of
service scenario, achieved with the LSDP’s performance grant program.
- Developing a mid- to long-term plan for each of the five cities to ensure that the service levels
introduced with the support of the LSDP can be maintained without fiscal strain. This plan should
address how to close the funding gap upon phasing out the LSDP performance grant program.
- Conducting consultative sessions with the government (including national and local officials),
World Bank, and other relevant stakeholders to facilitate the adoption of the management decision
tool and the implementation of revenue enhancement and cost recovery plans in the five pilots
cities. This includes a hands-on review of the challenges and opportunities discussed in earlier
analytic sub-tasks.

The Consultant should comprise an efficient Indonesia-based team with a strong grasp of data systems
containing information on both national and subnational finance accounts. Additionally, the Consultant should
possess the capability to conduct thorough fieldwork in various Indonesian cities.
This local team should be adequate to ensure successful delivery of the study even under any relevant
epidemiological or other travel restrictions.
The client facing team should be fluent in English and Bahasa.
Expression of Interest
Submissions should be in English and limited to 30 pages in length.