LAHORE WASTE MANAGEMENT COMPANY

Key Milestones • Services and Assets Management Agreement (SAAMA)

Status – Not signed in any district • Identification of landfill site and improvement of existing

dumpsites – Status – land identified in all districts

• Opening of Bank account and transfer of funds to companies Status – accounts not opened & funds yet to be transferred

Letter of support from FD

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

Firms Pre –Qualified Name of Firms/ Cities/Marks Obtained

FSD GJW MUL RWP SKT BHWL Result

M/s. Albayrak 100 100 100 100 100 100 Qualified

M/s. Ozpak 100 100 100 100 100 100 Qualified

M/s. Cevre 98 98 98 98 100 100 Qualified

M/s. GHS N/A 51.5 N/A N/A 62 62 Qualified in SKT, BHWL)

M/s. Waste Buster 30 30 30 30 39 39 Disqualified

1.For small cities ( Sialkot, Bahawalpur)2.For large cities ( Faisalabad, Gujranwala, Rawalpindi, Multan)

Time lines for Bidding process Sr. No

Activity Time Line Activity Days

Remarks

1 Preparation of Prequalification Documents & Submission to the Companies for Approval of BODs

Jul 20, 2013 02

2 Publication of Pre-qualification Advertisement in Local & International Newspapers and PPRA Web

Jul 22, 2013 02

3 Approval of prequalified documents by the Respective BODs July 26, 2013 05

4 Issuance of Prequalification Documents to Potential Applicants/Bidders

Jul 27, 2013 02

5 Submission of Technical Proposals by Potential Bidders and Opening of Technical Proposals

Aug 22, 2013 25

6 Technical Evaluation by LWMC(Consultant) Aug 30, 2013 08

7 Submission to the Respective Companies for BODs Approval Sep 03, 2013 03

8 Preparation of Bid Documents & Submission to Companies for BODs Approval

Sep 06, 2013 03

9 Invitation to Bid to Prequalified Bidders Sep 10,2013 04 Issued for FSD, SKT

Cont’d...Sr. No

Activity Time Line Activity Days

Remarks

10 Issuance of Bid Documents to Prequalified Bidders

Sep 12, 2013 02 Being issued as per approvals received from respective BODs

11 Pre-Bid Meeting Sep 15, 2013 03 Expected on Sep 25, 2013

12 Submission of Financial Proposals & Opening

Sep 21, 2013 06 Sep 30, 2013

13 Financial Evaluation by LWMC Sep 24, 2013 03 Oct 04, 2013

14 Appraisal by Finance Department Sep26, 2013 01 Oct 07, 2013

15 Final Negotiation by the Committee Sep28, 2013 05 Oct 08, 2013

14 Approval of Financial Bid by Respective BODs

Oct 03, 2013 05 Oct 12, 2013

15 Award and Signing of Contract 7th Oct, 2013 - Oct 14, 2013

BID SECURITY

The amount of Bid Security for Large city Local Rs 100 MillionInternational USD 1 Million

The amount of Bid Security for Small city (Bahawalpur & Sialkot)Local Rs 50 MillionInternational USD 0.5 Million

• PERFORMANCE SECURITY10 % of Contract Price in form of Bank Guarantee for 7 Years.

• SUB CONTRACTINGContractor may execute subcontract for services up to 30% of total services.

• PENALTIESThe amount of penalty to be imposed during one month shall not, in any case, exceed 15 % of the monthly progress payment.

(Details of Penalties)

• Price Escalation The amounts payable to the Contractor on price escalation will be as per the formula

i) Pn = A + b Ln + c Fn Lo Fowhere, “Pn” is the Price Adjustment factor.“n” (excluding Fixed Cost, Reimbursable Cost and Provisional

Sums). “A” is a constant or the Non-Adjustable Portion of the Price

Adjustment Factor to be specified, representing the Non-Adjustable Portion of the Contract Price.

“b, c, are Coefficients or weightages of the order of 0.xx“Lo, Fo, are the Base Date Indices for the Labor and Fuel are

adjustable elements.

ii) Coefficients: A = 0.70b = 0.10Laborc = 0.20 Fuel

iii) Base and Current Dates Prices and Source of Prices The prices of elements subject to Price Adjustment shall be

to the extent possible as given in the Statistical Bulletins published by the Federal Bureau of Statistics (FBS), Statistical Division Government of Pakistan. Statutory notifications and official price from public sector organizations, where available, may be used at the option of the Employer. The source for prices of High Speed Diesel (HSD) shall be either be Statistical Bulletins or Pakistan State Oil (PSO).

• MOBILIZATION ADVANCE

(Option 1)An amount up to 10% of the contractor value shall be granted as an advance in two equal installments, upon request of the applicant, before starting the work and after signing the Contract. This advance payment shall be deducted, from monthly performance payments of the Applicant in 24 installments, within 36 months period from commencement of work subject to Bank guarantee letter from schedule Bank of Pakistan.

(Option 2)Mobilization advance shall be payable for meeting local duties & taxes and will be payable on phase wise arrival of imported machinery in Pakistan. Mobilization advance shall not exceed 15% of initial investment amount (pertaining only to imported vehicles and other imported equipment) as per the signed contract. This advance payment shall be deducted, from monthly performance payments of the Applicant in 24 installments, within 36 months period from commencement of work subject to Bank guarantee letter from schedule Bank of Pakistan.

Outsourcing of SWM services in Bahawalpur

LAHORE WASTE MANAGEMENT COMPANY

Waste Generation Statistics

CITY No. of UCsPOPULATION

in 2013(Million)

WASTE GENERATION (TONS / DAY)

Faisalabad 113 2.90 1622

Gujranwala 64 1.58 887

Rawalpindi 62 1.46 818

Multan 61 1.23 947

Sialkot 16 0.52 265

Bahawalpur 18 0.51 314

Murree 01 0.08 32

TOTAL 335 8.47 4921

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; and • Transportation of MSW to the Disposal Site

Scope of Residual Functions of CDGs

• Monitoring of MSW Collection and Transportation Contract as per agreed KPIs;

• Enactment and Enforcement of relevant laws; • De-silting of roadside waste water open

drains; and • Levying of charges and fees.

Penalty Mechanism and Monitoring of Contractors

• Robust penalty mechanism on the basis of experience of Lahore model

– Vehicle Trip Counting System (VTCS)

– Vehicle Tracking & Monitoring System (VTMS)

– Android Based Monitoring

– Complaint Re-dressal System (CRS)

Bidding Documents

• Instruction to Bidders• General Conditions of the contract• Technical Specifications

– Tentative Pre – bid conference on 20th September 2013

– Deadline for submission of bid by firms is 30th September 2013

Sr. No.

Activity Standard

1 Container for waste storage

0.8 m3 volumetric container, and 5 m3 container to be used in conjunction with 7, 13 and 25 cubic meter compactors

2 Door-to-door waste collection

2 Mini dumpers for each UC

3 Mechanical Sweeping

One mechanical sweeper for 40 km road length each day.

4 Waste Transportation

At least 3 trips per vehicle to WTS/dumpsite

5 Sweeping Standard

1 sanitary worker for 800 persons

Design Parameters

Sr. No.

Activity Standard

6. Wheelie Bins 1 Wheelie per worker four plastic liner bags to be fixed in wheelie bins daily.

7. Collection bags

For 6 month @ 3 bags/week

9. Support Vehicles

Tractor Loader, Dumper, Front End Loader, Water Bowzer and Washing Machines as container washing vehicle etc.

Design Parameters continued

Phase A is the first area that needs to be started in the first two (02) months after the site delivery.

Commencement Period from the Date of delivery of Site to

the Contractor

Phase A Within Two (02) Months

City will be taken over in Four distinct phases

Sr. No. Position

Workers Provided by

Employer

Additional Workers Required

Total Required Workers

1 LOADER OPERATOR - - -

2MOTOR VEHICLE INSPECTOR

- 3 3

3 SANITARY INSPECTOR 8 0 8

4SANITARY SUPERVISOR

16 - 16

5 DRIVER - 101 101

6 WORKER 105 86 191

7 HAND SWEEPER 476 164 640

TOTAL 605 354 959

Man power requirement

Vehicles arrangements

• The contractor shall supply the vehicles and equipment required for the Phase: A within first two (02) months.

Activity / Indicators

Baseline Target2014 2015 2016

Household level coverage of SWM services through door-to-door (DTD) collection

No area served under DTD

collection

30% 40% 50%

Collection efficiency (Waste transported per month i.e. amount reaching to final disposal site)

55% 80% 85% 90%

Service Delivery Indicators

Activity / Indicators

Baseline Target

2014 2015 2016Mechanical Sweeping Coverage

0 km 40 km Increase according to infrastructure improvement

Increase according to infrastructure improvement

Mechanical Washing coverage

No such activity in practice

Development of schedule for weekly washing activity at predefined roads and locations of public interest. 3 teams

Service Delivery Indicators continued

Vehicle and Machinery Sr. # VAHICLE No of Vehicles

1 7m3 Compressed garbage truck 2 axle 82 13m3 Compressed garbage truck 2 axle 63 Water bouzer (local) 14 Sweeper 6m3 2 5 Container washer 1 6 Washing vehicle 8m3 (per day) 17 DUMPER (10 Ton) 03 8 LOADER (per hour) 99 FRONT END LOADER 2

10 CHAIN BULLDOZER 011 ARM ROLL TRUCK 5m3 (LOCAL) 212 Compactor 25m^3 213 Mini Dumper (1 cubic meter) 4014 CAR 1000CC (LOCAL) 5

Total 82

Rough Cost Estimates

• MAIN FEATURES :

– Project Life: 7 YEARS– Financial Modeling : ROE MODEL– % Equity: 40%– Return On Equity (Roe): 20%– Annual Cost Of Project (with Tax): $13.3 MILLION– Total cost of the project (with tax): $93.2 MILLION– Monthly cost the project (with tax): $ 1.1 million

• Annual Activity wise Rough cost estimates :

1. SOLID WASTE COLLECTION: US $ 10.15 MILLION2. MECHANICAL SWEEPING: US $ 0.496 MILLION3. MECHANICAL WASHING: US $ 0.169 MILLION4. MANUAL SWEEPING: US $ 2.503 MILLION

TOTAL: US $ 13.3 MILLION

Rough Cost Estimates continued