Grant Program for the local recycling value chain

A value chain analysis conducted by UNDP in 2019 brought forth many bottlenecks of the existing informal recycling sector in the Ukhiya-Teknaf region. One of which was a lack of investment capacity. This includes no legal formation of the scrap dealers, high cost of transportation, poor quality recyclables, and lack of utility support for technological upgrades. To counter these challenges, UNDP initiated the Teknaf Ukhiya Grant Facility Program (TUGFP) in December 2019. The objective of TUGFP was to upgrade the current capacity of the local recycling value chain. Since UNDP SSWM was already working on source segregation at the households and market level, recycling improved in the local area. The waste collection increased, and the increasing demand met the correct supply of recyclable materials. Through TUGFP, the scrap dealers’ and shops’ operation capacity has developed drastically.

While the statement of adopting waste as a resource in its entirety is accurate, not all recyclable materials have value due to specific market forces in the project location. Finding a solution for non-valuable materials through supporting new ventures with innovative ideas was another objective of  TUGFP. Immediately after inauguration, UNDP distributed the first tranche of grant funds in December 2019 to 19 scrap dealers from Ukhiya and Teknaf, accounting for 40% of total grant funds. They disbursed the second tranche to the selected scrap dealers, representing 30% of the total grant money. Finally, in March 2021, UNDP distributed the third and final tranche of grant funds to 17 scrap dealers in the same area. This was the last 30% of total grant funds.

Scrap dealers who received the grant money are members of the two Scrap Dealers Cooperative Association based in Ukhiya and Teknaf. With the disbursed fund and technical support, the scrap dealers showed improved environment at the workplace, better knowledge of safety, proper waste disposal, increased average monthly collection and annual turnover, improved gender equality, no child labor, having plans about business, and advocating for membership with the association. 

The funding program supports the association and the scrap dealers along with it. The scrap dealers had an 18% profit increase because of the grant. The entire scrap sector in Ukhiya and Teknaf has developed and gotten more formalized because of the grant money.