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

Training was organized on 31-07-2013 and following topics were covered:
1. Registration of Companies & Regulators
2. 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 System
6. Early Actions
List of Participants

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

• 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

• RFP( International) advertised on 22 nd 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

Name of Firms/
Cities/
Marks Obtained
M/s. Albayrak
M/s. Ozpak
M/s. Cevre
M/s. GHS
FSD GJW MUL RWP SKT BHWL
100 100 100
100
98
100
98
100
98
N/A 51.5
N/A
100
100
98
N/A
100
100
100
62
100
100
100
62
M/s. Waste Buster 30 30 30 30 39 39
Result
Qualified
Qualified
Qualified
Qualified in
SKT, BHWL)
Disqualified
1.
For small cities ( Sialkot, Bahawalpur)
2.
For large cities ( Faisalabad, Gujranwala, Rawalpindi, Multan)

Time Line Sr.
No
Activity
1 Preparation of Prequalification Documents & Submission to the
Companies for Approval of BODs
2 Publication of Pre-qualification Advertisement in Local &
International Newspapers and PPRA Web
3 Approval of prequalified documents by the Respective BODs
Jul 20, 2013
Jul 22, 2013
Activity
Days
02
02
July 26, 2013 05
4 Issuance of Prequalification Documents to Potential
Applicants/Bidders
5 Submission of Technical Proposals by Potential Bidders and
Opening of Technical Proposals
6 Technical Evaluation by LWMC(Consultant)
7 Submission to the Respective Companies for BODs Approval
8 Preparation of Bid Documents & Submission to Companies for
BODs Approval
9 Invitation to Bid to Prequalified Bidders
Jul 27, 2013
Aug 22, 2013
Aug 30, 2013
Sep 03, 2013
Sep 06, 2013
Sep 10,2013
02
25
08
03
03
04
Remarks
Issued for
FSD, SKT

Sr.
No
Activity
10 Issuance of Bid Documents to
Prequalified Bidders
Time Line
Sep 12, 2013
11 Pre-Bid Meeting
12 Submission of Financial Proposals &
Opening
13 Financial Evaluation by LWMC
Sep 15, 2013
Sep 21, 2013
Sep 24, 2013
14 Appraisal by Finance Department
15 Final Negotiation by the Committee
Sep26, 2013
Sep28, 2013
14 Approval of Financial Bid by
Respective BODs
15 Award and Signing of Contract
Oct 03, 2013
7th Oct, 2013
Activity
Days
02
03
06
03
01
05
05
-
Remarks
Cont’d...
Being issued as per approvals received from respective BODs
Expected on Sep 25, 2013
Sep 30, 2013
Oct 04, 2013
Oct 07, 2013
Oct 08, 2013
Oct 12, 2013
Oct 14, 2013

 BID SECURITY
The amount of Bid Security for Large city
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
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)
(Key Performance Indicators)

• 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.

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

i. M/s. Ozkartallar I nsaat 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
1 Preparation of Prequalification Documents &
Submission to the Companies for Approval of BODs
2 Publication of Pre-qualification Advertisement in
Local & International Newspapers and PPRA Web
3 Approval of prequalified documents by the Respective
BODs
4 Issuance of Prequalification Documents to Potential
Applicants/Bidders
5 Submission of Technical Proposals by Potential Bidders and Opening of Technical Proposals
6 Technical Evaluation by LWMC(Consultant)
7 Submission to the Respective Companies for BODs
Approval
8 Preparation of Bid Documents & Submission to
Companies for BODs Approval
9 Invitation to Bid to Prequalified Bidders
Time Line
Jul 20, 2013
Jul 22, 2013
July 26, 2013
Jul 27, 2013
Aug 22, 2013
Aug 30, 2013
Sep 03, 2013
Sep 06, 2013
Sep 10,2013
Activity
Days
02
02
05
02
25
08
03
03
04

Cont’d...
Sr.
No
Activity
10 Issuance of Bid Documents to
Prequalified Bidders
11 Pre-Bid Meeting
12 Submission of Financial Proposals &
Opening
13 Financial Evaluation by LWMC
14 Appraisal by Finance Department
15 Final Negotiation by the Committee
14 Approval of Financial Bid by Respective
BODs
15 Award and Signing of Contract
Time Line
Sep 12, 2013
Sep 15, 2013
Sep 21, 2013
Sep 24, 2013
Sep26, 2013
Sep28, 2013
Oct 03, 2013
7th Oct, 2013
Activity
Days
02
03
06
03
01
05
05
-

LAHORE WASTE MANAGEMENT COMPANY

CITY
Faisalabad
Gujranwala
Rawalpindi
Multan
Sialkot
Bhawalpur
Murree
TOTAL
No. of UCs
16
18
01
113
64
62
61
335
POPULATION in 2013
(Million)
2.90
1.58
1.46
1.23
0.52
0.70
0.08
8.47
WASTE
GENERATION
(TONS / DAY)
1622
887
818
947
265
350
32
4921

• 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

• 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)

• 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.
Activity
1 Container for waste storage
Design Parameters
Standard
0.8 m 3 volumetric container , and 5 m 3 container
2 Door-to-door waste collection
3 Mechanical
2 Mini dumpers for each UC
One mechanical sweeper for 40 km road
Sweeping
4 Waste length each day.
At least 3 trips per vehicle to WTS/dumpsite
Transportation
5 Sweeping 1 sanitary worker for 800 persons
Standard

Design Parameters continued
Sr. Activity Standard
No.
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 workshop
Halaal Road

City will be taken over in Four distinct phases
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
A
Commencement Period from the Date of delivery of Site to the Contractor
Within Two (02) Months
B Within Four (04) Months
C
D
Within Six (06) Months
Within Eight (08) Months

Man power requirement
Sr. No.
Position
1 LOADER OPERATOR
2
MOTOR VEHICLE
INSPECTOR
3 SANITARY INSPECTOR
4
SANITARY
SUPERVISOR
5 DRIVER
Workers
Provided by
Employer
-
-
56
30
27
Additional
Workers
Required
9
5
-
82
423
6 WORKER
7 HAND SWEEPER
72
2,790
771
841
TOTAL 2,975 2,131
Total
Required
Workers
9
5
56
112
450
843
3,631
5,106

• 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.

Service Delivery Indicators
Activity /
Indicators
Household level coverage of SWM services through door-to-door
(DTD) collection
Collection efficiency (Waste transported per month i.e. amount reaching to final disposal site)
Baseline
No area served under
DTD collection
55%
2014
30%
80%
Target
2015
40%
85%
2016
50%
90%

Activity /
Indicators
Mechanical
Sweeping
Coverage
Mechanical
Washing coverage
Service Delivery Indicators continued
Baseline Target
2014 2015
60 km 240 km Increase according to infrastructure improvement
2016
Increase according to infrastructure improvement
No such Development of schedule for weekly activity in washing activity at predefined roads practice and locations of public interest. 3 teams

Sr. #
VAHICLE
No of
Vehicles
1 7m3 Compressed garbage truck 2 axle 26
2
7m3 Compressed garbage truck 2 axle
(local) 22
3 13m3 Compressed garbage truck 2 axle 20
4 Water bouzer (local) 8
5 Sweeper 6m3
6 hauler dumper (40 ton)
7 Container washer
8
13
1
8 washing vehicle 8m3 (per day) 3
Available with CDG
3
7*
* Based on volumetric capacity (dumpers 16 )

Vehicle and Machinery continued
Vehicles
9 DUMPER (10 Ton)
10 LOADER (per hour)
11 FRONT END LOADER
12 CHAIN BULLDOZER
13 ARM ROLL TRUCK 5m3 (LOCAL)
14 Compactor 25m^3
15 Mini Dumper (LOCAL)
16 CAR 1000CC (LOCAL)
Total
No of Vehicles
14
Available with CDG
8
5 9
2
0
9
9
249
5
398 23

• MAIN FEATURES :
– Project Life:
– Financial Modeling :
7 YEARS
ROE MODEL
– % Equity:
– Return On Equity (Roe):
40%
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

Rough Cost Estimates continued
• Annual Activity wise Rough cost estimates :
1. SOLID WASTE COLLECTION: US $ 10.15 MILLION
2. MECHANICAL SWEEPING: US $ 0.496 MILLION
3. MECHANICAL WASHING: US $ 0.169 MILLION
4. MANUAL SWEEPING: US $ 2.503 MILLION
TOTAL: US $ 13.3 MILLION