LAHORE WASTE MANAGEMENT COMPANY

Prequalification of firms 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

Firms Pre –Qualified 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)

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

Cont’d... 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, Sep 30, Financial Evaluation by LWMCSep 24, Oct 04, Appraisal by Finance DepartmentSep26, Oct 07, Final Negotiation by the CommitteeSep28, Oct 08, Approval of Financial Bid by Respective BODs Oct 03, Oct 12, Award and Signing of Contract7th Oct, 2013-Oct 14, 2013

 BID SECURITY The amount of Bid Security for Large city LocalRs 100 Million InternationalUSD 1 Million The amount of Bid Security for Small city (Bahawalpur & Sialkot) LocalRs 50 Million InternationalUSD 0.5 Million PERFORMANCE SECURITY 10 % of Contract Price in form of Bank Guarantee for 7 Years.

SUB CONTRACTING Contractor may execute subcontract for services up to 30% of total services. PENALTIES The 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 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.

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.

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 )

Sr. No ActivityTime LineActivity Days 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 BODs July 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 Approval Sep 03, Preparation of Bid Documents & Submission to Companies for BODs Approval Sep 06, Invitation to Bid to Prequalified BiddersSep 10, Time lines for Bidding process

Sr. No ActivityTime LineActivity Days 10Issuance of Bid Documents to Prequalified Bidders Sep 12, Pre-Bid MeetingSep 15, Submission of Financial Proposals & Opening Sep 21, Financial Evaluation by LWMCSep 24, Appraisal by Finance DepartmentSep26, Final Negotiation by the CommitteeSep28, Approval of Financial Bid by Respective BODs Oct 03, Award and Signing of Contract7th Oct, Cont’d...

Outsourcing of SWM services in Sialkot LAHORE WASTE MANAGEMENT COMPANY

Waste Generation Statistics CITYNo. of UCs POPULATION in 2013 (Million) WASTE GENERATION (TONS / DAY) Faisalabad Gujranwala Rawalpindi Multan Sialkot Bahawalpur Murree TOTAL

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

Sr. No. ActivityStandard 1 Container for waste storage 0.8 m 3 volumetric container, and 5 m 3 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 5Sweeping Standard 1 sanitary worker for 800 persons Design Parameters

Sr. No. ActivityStandard 6.Wheelie Bins 1 Wheelie per worker four plastic liner bags to be fixed in wheelie bins daily. 7.Collection bagsFor 6 3 bags/week 9.Support VehiclesLoader, 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. 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 AWithin Two (02) Months BWithin Four (04) Months City will be taken over in Four distinct phases

Sr. No.Position Workers Provided by Employer Additional Workers Required Total Required Workers 1LOADER OPERATOR3-3 2 MOTOR VEHICLE INSPECTOR -33 3SANITARY INSPECTOR-88 4 SANITARY SUPERVISOR -16 5DRIVER WORKER HAND SWEEPER653- TOTAL 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 phase shall be started within the specified timelines.

Activity / Indicators BaselineTarget 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 BaselineTarget Mechanical Sweeping Coverage 60 km98 Km 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. # VAHICLENo of Vehicles 17m3 Compressed garbage truck 2 axle8 213m3 Compressed garbage truck 2 axle6 3Water bouzer (local)2 4Sweeper 6m34 5hauler dumper (40 ton)- 6Container washer1 7washing vehicle 8m3 (per day)1 8DUMPER (10 Ton)5 9T/LOADER (per hour)3 10FRONT END LOADER- 11CHAIN BULLDOZER1 12ARM ROLL TRUCK 5m3 (LOCAL)1 13Compactor 25m^31 14Mini Dumper (LOCAL)35 15CAR 1000CC (LOCAL)5 Total73

VehiclesNo of Vehicles 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 $ MILLION 2.MECHANICAL SWEEPING:US $ MILLION 3.MECHANICAL WASHING:US $ MILLION 4.MANUAL SWEEPING:US $ MILLION TOTAL:US $ 13.3 MILLION Rough Cost Estimates continued