Outsourcing of Solid Waste Management Services in Six Cities

1. Outsourcing of Solid Waste Management Services in Six Cities LAHORE WASTE MANAGEMENT COMPANY

2. Sequence • Contract Details • Procurement procedure • Design • Financial Model • Bid Opening • Performance Monitoring • Institutional Arrangements • Timeline • Risks of project

3. A- Contract Details (Procurement, Design and Financial modeling)

4. A(1)- Procurement Procedure

5. Prequalification of firms • RFP( International) advertised on 22nd July 2013 • Submission Date was 22 August , 2013. • Pre-qualification Criteria • Business experience and certification (25 marks) • Personnel capabilities (20 marks) • Equipment & machinery (30 marks) • Financial capability (25 marks) • Total Qualifying Marks = 60% • Criteria encourage local contractors for bidding, the marks were allocated proportionate to capabilities

6. Firms Pre –Qualified • For small cities ( Sialkot, Bahawalpur) • For large cities ( Faisalabad, Gujranwala, Rawalpindi, Multan)

7. Components of the Bid Documents • Instruction to Bidders • General Conditions of the contract • Technical Specifications

8. Cont’d... • Bid Security The amount of Bid Security for Large city (Multan, Faisalabad, Rawalpindi & Gujranwala) Local Rs 100 Million International USD 1 Million The amount of Bid Security for Small city (Bahawalpur & Sialkot) Local Rs 50 Million International USD 0.5 Million • Performance security 5% of Contract Price in form of Bank Guarantee for 7 Years.

9. Cont’d... • Mobilization advance • 10% of the contract value in two equal installments • Mobilization advance is secured against Bank Guarantee • Recovery of mobilization advance in 24 installments within 36 months

10. Approval of Bid documents • Bid Documents & cost estimates were approved by the Govt of the Punjab in the meeting held on 30th Sep 2013 under the Chairmanship of Chief Secretary of the Punjab • The BODs of six cities also approved the bid Documents • The bid documents were issued to prequalified bidders

11. Details of issuance of bid documents

12. Submission of Financial Bids • Bids were opened on October 08, 2013 • Bid opening ceremony was attended by all districts and bidders .

13. Results of Financial Bids • Bids were examined and found responsive. Detailed attached

15. A(2)- Project Design

16. Waste Generation Statistics

17. Scope of New SWM contract • Manual sweeping in streets • Vacuum sweeping on major roads • Mechanized Washing • Door-to Door Waste Collection • Container based Waste Collection • Transportation of MSW to the Disposal Site

18. Design Parameters

19. Cont’d…

20. Location of proposed landfill site (Faisalabad)

21. Location of proposed landfill site (Gujranwala)

22. Location of proposed landfill site (Rawalpindi)

23. Location of proposed landfill site (Multan)

24. Location of proposed landfill site (Sialkot)

25. Location of proposed landfill site (Bahawalpur)

26. Phases Implementation

27. Vehicles & Machinery Requirements • The contractor shall supply the vehicles and equipment required for the contract as per given Phases and timelines

28. Vehicle and Machinery (Faisalabad)

29. Vehicle and Machinery (Gujranwala)

30. Vehicle and Machinery (Rawalpindi)

31. Vehicle and Machinery (Multan)

32. Vehicle and Machinery (Sialkot)

33. Vehicle and Machinery (Bahawalpur)

34. Man power requirement Details

35. A(3)- Financial Modeling

36. Financial Modeling • Main Features

37. Summary of Unit Rates

38. Total Cost & Mobilization Advance

39. Long Term Cost 2013-to-2021 Amount in PKR in million

40. Immediate Cost 2013-14 (Mar-June) Amount in PKR in million

41. Factors Affecting Cost • Haulage from proposed Sanitary Landfill Site / Dumpsite • Haulage from proposed Waste Transfer Station • Haulage from Garage to the operational site • Proximity of the workshops, parking areas and water hydrants from city • Expenditures on residual functions

42. B- Performance Monitoring

43. Key Performance Indicators (KPIs) KPIs have been defined and made part of the bidding document for measuring performance of the contractors. KPIs have been linked with resolution time and penalties KPIs • Penalties The amount of penalty to be imposed during one month shall not, in any case, exceed 10 % of the monthly progress payment. (Details of Penalties)

44. Service Delivery Indicators

45. Cont’d…

46. C- Institutional Arrangements

47. Key Milestones • Formation of companies and Board of Directors Status – Completed • Services and Assets Management Agreement (SAAMA) Status – Submitted to Law Department • Identification of landfill site and improvement of existing dumpsites – Status – Identified • Hiring of key Staff Status – In progress

48. Residual Functions of WMC • Construction of access road at waste disposal site; • Establishment of weighbridge; • Procurement of hardware for monitoring tools such as Vehicle Trip Counting System, Vehicle Tracking and Monitoring System, Android Based Monitoring, Complaint Management System, RFID System etc.

49. Cont’d… • Development of software for monitoring of contractors; • Provision of land for development of Waste Transfer Stations; • Establishment of Water Hydrants • Hiring of machinery for managing waste disposal site

50. Residual Functions Local Govt • Monitoring of performance of the WMC against agreed KPIs in SAAMA; • Enactment and Enforcement of relevant laws; • De-silting of roadside waste water open drains; and • Levying of charges and fees