Waste management… a la Greca. So far, the municipal debt of the Peloponnese region to the private sector, which in partnership with the state has taken over waste management, is 3.9 million euros. Most of it comes from two municipalities, Nafplio and Argos Mycenae, which already owe more than 1 million euros each, paying almost nothing since they were served.

The mandate of waste management to a private individual (TERNA Energy) went through an adventure of more than ten years until it began to materialize. The first of the three blocks (Paleochuni of Arcadia) began its work in February 2022, accepting waste from almost all of Arcadia (except Megapolis), Argolis and Corinthia. It also accepts, on an exceptional basis, waste from three municipalities declared under a state of emergency: Sparta, West Mani and Elafonissos.

Municipalities cover their obligations in a complex way. They pay their quarterly contribution to the Solid Waste Management Agency (FODSA, the waste collective body of the municipalities of each region), which in turn transfers the money to the Peloponnese region, which is under contract to a private individual. When all units are delivered and the trial run is over, FODSA (which currently has only one employee) will take over from the county.

How consistent were the municipalities? At the moment, the debt to the individual is 3,904,374 euros. Of these, two municipalities have the largest debt: the municipality of Nafplion owes 1.4 million euros, and the municipality of Argos 1.1 million euros. They are followed by the municipalities of Corinthia with 323,000 euros and Loutraki with 254,000 euros. Since things don’t work the same way in concession contracts as they do in the state, TERNA has already threatened FODSA with a penalty, adding to the debt.

“As soon as some municipalities don’t pay, problems start,” says FODSA President Stavros Argitakos. “We have shown a lot of patience, we hate to put pressure on the municipalities, but we can be blamed if we do not use all means to collect debts. I want to believe that the municipalities will fulfill their obligations.”

“The problem is created by the way municipal payments are collected through checkpoints and other energy providers,” the mayors say.

The two principal debtors allege that the problem arose from failure to pay sufficient council tax. “The cost of waste for us is 150,000-200,000 euros per month,” explains Nafplio Mayor Dimitris Kosturos. “The problem is created by the way utility bills are collected through checkpoints and other energy providers. Many people do not pay the CPT or negotiate that does not explicitly include municipal fees. Years later, the checkpoint sends us lists of unpaid utility bills. In 2022, we received a verified municipal tax debt for 2017 in the amount of EUR 800,000. We will definitely start the process of collecting debt from each citizen, because otherwise it would be a criminal offense. At the same time, we have begun to increase our reimbursable fees in 2023 to match the cost of waste management. But when 35-40% of municipal fees are not collected, we cannot increase them by 200% to cover the missing amounts they owe us. In any case, we will make efforts to normalize payments.”

“The problem is related to PPC and other providers. The percentage of unpaid bills is high,” emphasizes the deputy mayor for cleanliness of Argos-Mycenae Christos Petselis. “To resolve the issue, we decided to pay off the debt from other resources.”

However, the Ministries of the Environment and the Interior have not shown that they particularly trust the municipalities. A recent law (5027/2023) included a provision whereby if municipalities have PPP debts for waste management, they will be withheld directly from the Central Autonomous Resources (CAR).

In terms of project development, the second unit is expected to open in May in Messinia, with Laconia following in early summer. However, municipalities have to bear (in addition to the already very high recycling costs in the subdivisions) the high costs of transporting waste to the nearest subdivision, as there are not enough transfer stations (today one in Spatovuni for the whole of Corinth and one in Nea Chios for Argolis) . The issue was discussed for years, but remained on paper. FODSA has started procedures for seven (in the first stage) + eight (in the next) transfer stations. “The Accounts Chamber approved the tender for the first seven, and we hope that it will be put up for auction next week,” notes Mr. Argitakos, “we hope that the first ones will be created in early 2024. “. According to FODSA, in 2022, the Paleoochuni site received 98,927 tons of waste. The largest amount is in the municipalities of Corinthia (18,814 tons), Nafplio (15,242 sq. m.), Argos (13,974 sq. m.), Tripoli ( 13,603 sqm) and Sparta (9,410 sqm).