Monitoring

2.29 It would be a mistake to assume in the absence of well-defined contract performance measures, enforceable contract sanctions, vigilant contract monitoring, and cost accountability that private contractors would deliver a lower cost than that of public service. The monitoring of the performance of the private sector is very important. A good contract clearly defines measurable outputs of service required of the contractor and thus enables performance monitoring. A good contract also clearly defines the sanctions that are to be imposed for nonperformance.

2.30 Complaints from residents about solid waste service should be received by the local government, even when solid waste service is being provided by private firms (56). Singapore has set up its complaint bureau for the receipt of complaints about all public services. The central complaint bureau processes each complaint with the appropriate government agency and follows up on whether the problem resulting in the complaint has been adequately addressed, a process that they feel increases the accountability of each government agency (11).

2.31 In Kuala Lumpur, monitoring includes comparing the efficiency of the public service with that of the private contractor. It was reported that the private firms made more daily trips for each vehicle and collected more waste on each trip. The result was that the private firms collected daily 8.5 tonnes per vehicle, whereas the public service collected daily 5.7 tonnes per vehicle (11).

2.32 In Hong Kong, at privately run transfer stations, monitoring includes six full-time inspectors from the local government. Operations are continuously observed and regular readings of pollution levels (noise, dust, odor) are made. In addition, the weigh-bridges at the transfer station are computerized and linked to the central computer in local government, so that all data on incoming and outgoing loads are immediately available to the local government for performance monitoring (11).

2.33 In 1991 in Bogota, two private contractors serviced about 40 percent of the city's households and establishments, while the local government serviced about 55 percent. The city hired a private company of consulting engineers to monitor both the public and private service delivery and to provide a monthly report on performance by each. The cost of the monitoring contract amounted to 2.5 percent of the total cost for contracting with the two private firms (11).