LAHORE WASTE MANAGEMENT COMPANY

Decisions of meeting on 23-07-2013

1. S&GAD may place the services of competent officers at the disposal of Board of Directors of newly established solid waste management companies within week’s time

2. LWMC to arrange a one day training workshop for BOD members/district representatives

3. LG&CD department to seek legal opinion of Law Department on SECP rules about nomination of public representatives in companies

S&GAD posted following six focal persons in all six districts vide SI.2-2/2013 © Dtd 03-08-2013.

•EDO (F&P), Sialkot, Mr. Nadim Sarwar

•EDO (F&P), Gujranwala, Tariq Mahmood

•EDO (F&P), Rawalpindi, Muhammad Ali Randhawa

•EDO (CD), Multan, Asif Ali Farrukh

•EDO (MS), Faisalabad, Adbul Waheeh Hamayun

•EDO (F&P), Bhawalpur, Sakhawat Ali Khan

1. Posting of focal persons

2. One day training for Districts

1. Registration of Companies & Regulators2. Introduction to Services & Assets Management

Agreement & its executions 3. Change Management (Human Resource)4. Financial Management Challenges (Financial

Oversight & reporting) 5. Outsourcing arrangements of the Solid Waste

Management System6. Early Actions

Training was organized on 31-07-2013 and following topics were covered:

List of Participants

One day training for Districts

40 days Plan 90 days Plan

3. LG&CD department to seek legal opinion of Law Department on SECP rules about nomination of public representatives in companies

Law department has indicated that LWMC and other waste companies formed in other cities are not public sector companies and therefore SECP rules regarding nomination of public representatives in companies is not applicable

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 • EOIs advertised on 22nd July 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

i. M/s. Ozkartallar Insaat Sanayi Ve Ticaret Limited

Sirketi ( six cities)

ii. M/s. Albayrak Turizm Seyahat Ve Ticaret A.S.

Turkey, Pakistan Branch Office (all six cities)

iii.M/s. CEVRE Insaat Temizlik Tic Ltd Sti (all six cities)

iv. M/s Ghulam Hussain & sons Ltd., ( Skt. & Bhw)

v. M/s Waste Busters Consortium with Conpro

(Applied but rejected )

Penalty Mechanism and Monitoring of Contractors

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

– Vehicle Tracking & Monitoring System

– Android Based Monitoring

– Complaint Re-dressal System (CRS)

Sr. No

Activity Time Line Activity Days

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

Time lines for Bidding process

Sr. No

Activity Time Line Activity Days

10 Issuance of Bid Documents to Prequalified Bidders

Sep 12, 2013 02

11 Pre-Bid Meeting Sep 15, 2013 03

12 Submission of Financial Proposals & Opening

Sep 21, 2013 06

13 Financial Evaluation by LWMC Sep 24, 2013 03

14 Appraisal by Finance Department Sep26, 2013 01

15 Final Negotiation by the Committee Sep28, 2013 05

14 Approval of Financial Bid by Respective BODs

Oct 03, 2013 05

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

Cont’d...

Outsourcing of SWM services in Faisalabad

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

Bhawalpur 18 0.70 350

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 drains;

and • Levying of charges and fees.

Prequalification of firms • EOIs advertised on 22nd July 2013

• Pre-qualification Criteria• Business experience and certification (25 marks)• Personnel capabilities (20 marks)• Equipment & machinery (20 marks)• Financial capability (25 marks)• Qualifying Marks = 60%

To encourage local contractors for bidding, the marks were allocated proportionate to capabilities

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

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

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

10. Transfer Station

Near workshopHalaal Road

Design Parameters continued

Phase A is the first area that needs to be started in service in the first two (02) months after the site delivery. The following time lines shall have to be adhered with for start of various phases. Phases

Commencement Period from the Date of delivery of Site to

the Contractor

A Within Two (02) Months

B Within Four (04) Months

C Within Six (06) Months

D Within Eight (08) 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 - 9 9

2MOTOR VEHICLE INSPECTOR

- 5 5

3 SENITARY INSPECTOR 56 - 56

4SANITARY SUPERVISOR

30 82 112

5 DRIVER 27 423 450

6 WORKER 72 771 843

7 HAND SWEEPER 2,790 841 3,631

TOTAL 2,975 2,131 5,106

Man power requirement

Vehicles arrangements

• The contractor shall supply the vehicles and equipment required for the Phase: A within first two (02) months. However the remaining phases shall be started within the specified timelines and all four phases shall be completed within eight (08) months from the date of delivery of site to the contractor.

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

60 km 240 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

Available with CDG

1 7m3 Compressed garbage truck 2 axle 26

27m3 Compressed garbage truck 2 axle (local) 22

3 13m3 Compressed garbage truck 2 axle 20 4 Water bouzer (local) 8 3 5 Sweeper 6m3 8 6 hauler dumper (40 ton) 13 7* 7 Container washer 1 8 washing vehicle 8m3 (per day) 3

* Based on volumetric capacity (dumpers 16 )

Vehicles No of Vehicles Available with CDG

9 DUMPER (10 Ton) 14 8

10 LOADER (per hour) 9 5 11 FRONT END LOADER 2 12 CHAIN BULLDOZER 0 13 ARM ROLL TRUCK 5m3 (LOCAL) 9 14 Compactor 25m^3 9 15 Mini Dumper (LOCAL) 249 16 CAR 1000CC (LOCAL) 5

Total 398 23

Vehicle and Machinery continued

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

1- Institutional Capacity

Creation of LWMC

Hospital waste

Industrial waste

C & D waste

Hospital waste

Industrial waste

C & D waste

Sanitary land filling;

Composting;Anaerobic digestion;

RDF productionIncineration

Sanitary land filling;

Composting;Anaerobic digestion;

RDF productionIncineration

SWM ActEnforcement by CDGL

SWM ActEnforcement by CDGL

User Charges:

CommercialResidentialIndustrial

User Charges:

CommercialResidentialIndustrial

MediaSchool

Education

MediaSchool

Education

ISWM ISWM FrameworkFramework

SAAMA Agreement• SAAMA was signed b/w

CDGL & LWMC on 25th June 2011

• Functions regarding SWM services transferred to LWMC

• Personnel & Assets including Vehicles, workshops, offices

• CDGL monitor LWMC as per agreed KPIs

• Residual functions like enforcement & enactment of rules & regulation, and monitoring of LWMC

Strategic Solid Waste Management Plan

Long term Solid Waste Management Plan (7 Years)

Provide long term guiding principles and strategy

Highlight the long term policy of the LWMC

Indicates major initiatives to be taken in future

Strategic Plan (2011-17)