Addis Ababa Solid Waste Management Agency has contract out the door to door household solid waste collection to share enterprise and transportation by the city cars at a price rate of Birr 90/m3 and private association from business sector is paid Birr 90/m3 . Annually needed revenue was 400 million Birr and actual expense is the same. The service is required to provide full coverage; the contribution of the public will comprise 1/4 of the cost required. The gap between what their pays and the actual expenditure made the city administration to subsidize Birr 279 million was one of the critical problems because the existing service charging methodology lacks logic of collective action i.e. service takers which are not using taped water, mainly the business community high solid waste generator and give free service. Increasing the service charging money to solve poor sanitation service coverage by introducing a cost recovery mechanism of user charged service fees on a self financed base. This will benefit all the residences because marginal cost is very lower as compared to the high benefits they receive from the clean environment. The proposed collective action charges and revenue generated are residences 5-20% and business society 42.5% on tap water bill, public transport business Birr 75-100/annual, construction sector per bag 50 cents/cement and throwaway wastes 15-25 cents is crown corks, spring water bottled, mobile cards, chat, lottery can earn 93.1, 34.3, 2.3,5 and 62.1 million/annual Birr respectively. Due to this improving the collection of charging money to enhance the service and create jobs.
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