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China Sword policy

A local government market analysis and updating of model waste contract templates, due to the impact of the China 'National Sword' policy on recycling services in SA.

This project's final report and evaluation was completed on 6 September 2018.

Project approach

The LGA commissioned Rawtec Pty Ltd to complete the “Market Analysis of South Australian Recyclables” report.

Given the urgency associated with the work, and Rawtec’s involvement with the issue through the Waste Management Association of Australia, Rawtec was requested to undertake this piece of work directly.

The report was released in May 2018.

Read the final report

The LGA led a project to develop a model “rise and fall” clause for recyclables processing contracts. The LGA project managed a team of two consultants, Rawtec for technical advice and Tanom Legal for legal advice, to develop the model clause and supporting documents and tools.

The clause was finalised and published on the LGA website in August 2018.

Project achievements

The China Sword Policy project was established in response to an urgent need to assist councils to understand and manage changes to China’s waste import policy under which most recyclables could no longer be exported to China.

The “Market Analysis of South Australian Recyclables Report” has assisted councils to understand their exposure to increased costs associated with the China Sword Policy. The model “rise and fall” clause will assist councils who wish to re-negotiate their waste management contracts to provide for risk-sharing arrangements.

Project outputs and outcomes

The “Market Analysis of South Australian Recyclables” report and developing the model “rise and fall” clause to assist councils to provide for risk-sharing arrangements. The report was released in May and is published on this page, above.  The model “rise and fall” clause was finalised and published on the LGA website in August 2018.

Project distribution

A summary of the “Market Analysis of South Australian Recyclables” report was provided directly to the media to raise awareness of the impact of the China Sword Policy on South Australian councils. The report was also provided to all councils that requested a copy.

The model “rise and fall” clause was published on the members-only section of the LGA website in August 2018.   The LGA CEO also wrote to all councils CEOs advising them of development of the clause. The LGA is in the process of developing a calculator/tool to be used alongside the clause (funded through other sources) and will invite interested councils to an information session on the clause in coming weeks.

Performance measures

The project was completed in a timely fashion and within budget.

Project evaluation

  • The “Market Analysis of South Australian Recyclables” report was effective in raising awareness of the impact of the China Sword Policy on councils
  • The model “rise and fall” clause is yet to be used by councils, however, approximately 10 councils have expressed interest in attending an information session on this issue suggesting there is interest in the clause and how it can be used.

The project has been useful to the local government sector in responding to the implementation of the China Sword Policy.

Further information on the project is available on the Model Contracts and Tendering Toolkit page.

Ratings and comments

Project snapshot
Project number: 2018.14
Project category: Environment and Natural Resources
Start date: 22 May 2018
Completion date: 07 Sep 2018
Recipient: LGA
Status: Complete
Funds approved: $25,000
2018.14