Lahore Waste Management Company City District Government Lahore Progress for Outsourcing of Solid Waste Management Functions in Six Cities of Punjab

TIME LINES FOR BIDDING PROCESS

Sr. No ActivityTime LineActivity Days Remarks 1Preparation of Prequalification Documents & Submission to the Companies for Approval of BODs Jul 20, Publication of Pre-qualification Advertisement in Local & International Newspapers and PPRA Web Jul 22, Approval of prequalified documents by the Respective BODsJuly 26, Issuance of Prequalification Documents to Potential Applicants/Bidders Jul 27, Submission of Technical Proposals by Potential Bidders and Opening of Technical Proposals Aug 22, Technical Evaluation by LWMC(Consultant)Aug 30, Submission to the Respective Companies for BODs ApprovalSep 03, Preparation of Bid Documents & Submission to Companies for BODs Approval Sep 06, Invitation to Bid to Prequalified BiddersSep 10,201304Issued for FSD, SKT TIME LINES FOR BIDDING PROCESS

Sr. No ActivityTime LineActivity Days Remarks 10Issuance of Bid Documents to Prequalified Bidders Sep 12, Being issued as per approvals received from respective BODs 11Pre-Bid MeetingSep 15, Expected on Sep 25, Submission of Financial Proposals & Opening Sep 21, Expected Sep 30, Financial Evaluation by LWMCSep 24, Will be done till Oct 05, Appraisal by Finance DepartmentSep26, Oct 07, Final Negotiation by the Committee Sep28, Oct 08, Approval of Financial Bid by Respective BODs Oct 03, Oct 12, Award and Signing of Contract7th Oct, 2013-Oct 14, 2013 Cont’d...

PREQUALIFICATION CRITERIA AND QUALIFYING MARKS RFP( International) advertised on 22 nd July 2013 Submission Date was 22 August, 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

Prequalification Results Name of Firms/ Cities/ Marks Obtained FSDGJWMULRWPSKTBHWLResult M/s. Albayrak100 Qualified M/s. Ozpak100 Qualified M/s. Cevre Qualified M/s. GHSN/A51.5N/A 62 Qualified in SKT, BHWL) M/s. Waste Buster30 39 Disqualified 1.For small cities ( Sialkot, Bahawalpur)For small cities ( Sialkot, Bahawalpur) 2.For large cities ( Faisalabad, Gujranwala, Rawalpindi, Multan)For large cities ( Faisalabad, Gujranwala, Rawalpindi, Multan) The criteria was relaxed to encourage the local firms.

1.BID SECURITY The amount of Bid Security for Large city LocalRs 100 Million InternationalUSD 1 Million (Count….) BIDDING DATA

The amount of Bid Security for Small city (Bahawalpur & Sialkot) LocalRs 50 Million InternationalUSD 0.5 Million 4. PERFORMANCE SECURITY 10 % of Contract Price in form of Bank Guarantee for 7 Years. 5. SUB CONTRACTING Contractor may execute subcontract for services up to 30% of total services. 6. PENALTIES (right click to see the detail)(right click to see the detail) The amount of penalty to be imposed during one month shall not, in any case, exceed 15 % of the monthly progress payment.

7Price Escalation The amounts payable to the Contractor, pursuant shall be adjusted in respect of the rise or fall in the cost of labor and fuel by applying to such amount the formula prescribed in this. i)Pn = A + b Ln + c Fn Lo Fo where,  “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 = 0.70 b = 0.10Labor c = 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). However, for a particular adjustable element, the same source shall be used throughout the currency of contract as also stipulated in the tender documents before issuing the tender documents. Cont….

8.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.