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JORDAN
GAM WASTE TO ENERGY PROJECT
FEASIBILITY STUDY
TERMS OF REFERENCE
1.
BACKGROUND
The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) is
discussing with the Greater Amman Municipality (“GAM”, “Municipality” or “City”)) potential
financing of solid waste investments in Ghabawi Landfill (cells 4 and beyond) and the
accompanying project components.
GAM is responsible for solid waste management in Amman and is allowed to grant
concessions/licenses to other operators. It has its own budget, funded mainly by public money
including a significant proportion from direct taxation of businesses and households, building
permits and property development. GAM also receives a budget from the Central Government,
which is agreed each year between the City Council and Council of Ministers.
The Bank was approached by GAM to provide a sovereign guaranteed loan to complete a landfill
gas (“LFG”) recovery investment at cells 1-3 of the Ghabawi solid waste landfill facility which
was originally part of the World Bank (“WB”) investment. The investment programme is
currently under way. However, a more holistic approach is required for the solid waste
management services to be improved substantially and across the whole of the city.
GAM is responsible for MSW collection, transfer and disposal within the 22 districts of Amman
and five additional neighbouring districts of the metropolitan area of Amman combined with the
street sweeping services. Industrial, medical and hazardous waste is under the jurisdiction of the
Ministry of Environment.
In March 2015, GAM issued Tender No. (32/1/2015) requesting proposals from qualified
companies interested in a PPP (Design-Build-Operate-Transfer contract) for the MSW waste-toenergy facility for the Greater Amman Municipality (the “WtE RFP”). The project aims to
decrease the amount of waste destined for landfilling by the recovery of recyclable materials and
by producing renewable energy in the form of fuel and/or electricity. The scope of services
covers design, permit application, financing, constructing, operating, maintenance and transfer
(DBOT) to GAM. The Service Contract period shall be 15-30 years. The plant is to be located at
Al Shaer Transfer Station or Ghabawi Landfill. Bidders are encouraged to submit proposals for
both sites or for the one they find more suitable for their proposed project. The technical solution
that may include but is not limited to the following MSW processing technologies:
 mixed waste material recovery facility
 anaerobic digestion
 composting
 thermal processing facility with energy recovery through
 gasification, pyrolysis, mass-burn combustion
 refuse derived fuel production
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any combination of these technologies with an initial capacity of 1,200 to 1,500 t/day and
with at least two fully redundant processing lines.
In light of the above, Great Amman Municipality (“GAM”) has approached the European Bank
for Reconstruction and Development (the “Bank” or the “EBRD”) with a request to assess the
possibility of financing medium and long term solid waste management facilities for the
Municipality of Amman (the “Project”). This should include all stages of waste management
from collection, processing, treatment and disposal and include all intermediate steps during the
analysis.
The Bank wishes to commission a suitably qualified consultant (the “Consultant”) to prepare a
comprehensive feasibility study (“FS”) to determine a priority investment programme (the “PIP”)
that meet the WtE RFP requirements and evaluate its benefits, including assessing its
environmental and social feasibility.
In addition, as part of a broader engagement, the Bank retained Fichtner to assess the solid waste
sector in Amman in order to identify and develop an all-rounded approach to the sector.
2.
OBJECTIVES
The Consultant will review the WtE RFP requirements, Fichtner report, and other reports
regarding the MSW strategy of Amman and verify whether a bankable project meeting the City’s
objectives below can be delivered. This Project will be based on an effective least-cost
investment programme that meets GAM objectives for MSW. The investment plan will be
justified on the basis of thorough technical, legislative, financial and economic analysis.
Furthermore, the Consultant will develop an efficient Project Implementation Plan, including
procurement schedule considering the current WtE RFP, and carry out an assessment of the
resource efficiency opportunities (including energy efficiency and renewable energy potential
and the impact on GHG emissions) and environmental and social impacts of the investment
programme.
The Feasibility Study should meet the requirements of the PPP Law of Jordan that defines the
approval process for a PPP.
Other scope of the assignment shall include, inter alia:
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Review the needs of the Client and/or Beneficiary, including definition of WtE RFP
Project and establishment of the area to be covered by the investment.
Review the specific needs1 for solid waste management in the area based on previous
studies.
Review the applicable legislation at local and national level in place regarding waste (e.g.
targets on material and energy production from waste), country Strategy and assess the
implications on the WtE RFP Project.
Assess needs of all relevant stakeholders, presenting any differentiated needs and priorities according to gender and age.
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Review and analyse the current system of solid waste separation, collection and
reprocessing for recycling and, if appropriate, make assessment on how the WtE RFP
Project fits into them, taking into consideration international best practices in waste
management (eg BREFs) and following the EU waste hierarchy options at the maximum
extent. Identify potential industrial users of separated materials and barriers existing to
the development of a market for such products.
Review and analyse the current situation of the waste treatment/separation/
recycling/landfilling in the area in terms of condition of major equipment and facilities,
recent past years performances, operation and maintenance (“O&M”) practices, capacity
of the City to manage and address all relevant environmental and social risks and
impacts, compliance with national laws and regulations and any liability issues.
Carry out a detailed analysis2 to select the best WtE RFP Project option and site location
for disposal (and where appropriate, separation and recycling), including existing and
new locations, taking into consideration international best practices in waste
management. The Consultant will produce a multi-criteria analysis justifying the selected
option or options (no more than three) and summarise it in tabular form. Processing
methodologies that should be analysed, include but not limited to:
o mixed waste material recovery facility;
o anaerobic digestion;
o composting;
o thermal processing facility with energy recovery;
o refuse derived fuel production; and
o any combination of these.
Once the WtE RFP Project option and site selection has been confirmed, screen the
project against the EBRD’s Environmental and Social Policy (2014, “ESP”) and
associated Performance Requirements (“PRs”) to propose, and agree with the EBRD, the
project category (A or B) and confirm the environmental and social due diligence
required.
If the project is categorised as B (once agreed with the EBRD) carry out an
Environmental and Social Assessment (E&S Due Diligence, “ESDD”) of the proposed
Project to identify its environmental and social risks, impacts and benefits and to
structure the Project to comply with the ESP and PRs. If the Project is categorised as A,
this ToR will be revised by the EBRD.
Estimate potential reductions in greenhouse gas (“GHG”) emissions arising from the
possible closure of any old landfills, as well as assess possible utilisation of biogas from
existing and planned landfill sites as well as any further waste processing that generates
biogas, and the impact on climate change mitigation.
Based on the results of the above, draw up a detailed priority investment programme
(“PIP”) for the WtE RFP Project selected options, including but not limited to collection
vehicles, recycling stations, processing and treatment technologies, wells, piping, and in
case future use of the exiting dumpsite is not recommended, closure of the existing
landfill and opening of a new sanitary landfill.
Make necessary recommendations for institutional changes (organisation of solid waste
management, changes in law or institutional, including human resources, changes)
Taking into consideration customers’ perspectives and any gender differentiated priorities, concerns and behaviour
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regarding solid waste management in the City, based on previous studies already
developed by GAM.
Conduct a financial analysis of the WtE RFP Project options and waste management
operations, including treatment and processing. Create a business plan over the lifetime
of the WtE RFP Project with detailed calculations of realistic capital expenditure
(“CAPEX”), revenues, expenses, debt service coverage ratio for an hypothetical loan and
Internal Rates of Return (“IRR”) (both economic and financial).
To prepare financial projections for selected waste treatment solution facilities; the
projections shall be fully consistent with the proposed WtE RFP Project, strategic
development plan and be based on prudent assumptions on the future PPP Contractor (the
Concessionaire) revenues and expenditures. Financial projections shall include annual
balance sheets, income and cash flow statements.
Design a general timetable of the implementation of the Project for each potential
scenario considering the current WtE RFP.
Develop a VfM and affordability analysis for the best contractual option and business
model for any required treatment and processing plants.
Calculation of the Bank’s standard measuring indicators and SRI impact indicators
(Annex 3).
SCOPE OF WORK
The Assignment can be categorised into the following five tasks:
3.1: Baseline study.
3.2: Project proposal.
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3.3: Project implementation plan.
3.4: Environmental and Social Assessment.
The consultant is expected to capitalise and build up the analysis based on existing studies about
the market and solid waste services already developed by the client and develop its own opinions
and recommendations. The Consultant is highly encourage to review that information since some
of the scope required in this engagement have been already considered in other studies.
3.1
Baseline study
This task involves the review of the present status of the waste management services in the
Project area. This analysis shall allow the Bank and the GoJ to better understand the present
situation in institutional, legal and financial, as well as technical and environmental terms.
The following shall, inter alia, be addressed:
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3.1.1. Market review
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Organisation. Describe and assess how solid waste management is organised. Describe
the historic background for the structure of the sector. Also describe the governance
structure.
Waste Generation. Describe/define the main categories of waste and estimate current and
future quantities, including composition analysis. Describe any large generators of
general or specific municipal solid waste, providing existing quantities and future
forecast.
Source separation. Describe existing (and/or past) experience with waste separation at
source (household and business/industries). Describe the regulatory requirements and
enforcement standards. Describe the market for extracted materials.
Recycling. Describe existing (and/or past) experience with recycling (household and
business/industries). Describe results, how it is/was organised, ownership, financial and
payment details. What are the government plans and requirements/enforcement records.
Describe potential opportunities to capture value from recycled material, including from
sales of green energy.
Waste Collection, Transportation and Treatment. Describe and assess how waste
collection and transportation is currently organised. Describe the main service providers
in terms of, inter alia:
o List and describe all market participants in the waste collection sector. For each
service provider, provide the following information
 Ownership (private or public) of these service providers.
 Providing service for industrial waste and/or households waste collection.
 Which assets does the entity have; age and state of the assets?
 Who controls/manages the entity?
 Which areas/waste generators does the entity serve?
 Nature of licencing, duration of contracts and award format. These should
include formal contracts with the City and/or the waste generators.
 How is the entity paid – officially and unofficially? Describe flow of funds
from the waste generator generators (or directly from the City as the case
might be) to the entity.
 What types and quantities of waste are handled?
 Who supervises the performance of the entity (if any)?
 Outline the entity’s key economic incentive drivers in the system.
 Quality of service provided.
 Any available financial statements.
Assess the potential for private sector participation in waste collection, transportation,
treatment and processing and outline potential transaction and contractual structures for
such participation, including a full VfM analysis of the recommended transaction
structure.
Identify room for improvements in terms of: (i) tendering process/procedures; (ii)
licencing requirements and; (iii) the contents of the legal contracts (also advise the
optimum duration of the contracts).
Waste treatment and final disposal. Describe and assess how waste treatment and final
disposal is currently organised. Describe each of the main players in terms of, inter alia:
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Who owns the entity?
History of the entity (organisational and structural).
Which assets does the entity have; age and state of the assets?
Who controls/manages the entity?
Formal contracts with the City and/or the waste generators.
How is the entity paid? Describe flow of funds from the waste generator (or
directly from the City as the case might be) to the entity.
o What types and quantities of waste are handled?
o Who supervises the performance of the entity?
o Outline the entity’s key economic incentive drivers.
o Service provided / environmental compliance.
o Any available financial statements.
o Assess the potential for private sector participation in waste treatment and
disposal operations and outline potential transaction and contractual structures for
such participation.
Paying for and Financing of Waste Management. Describe and assess how the current
waste management system is financed. Describe the system in terms of, inter alia:
o Direct payments (budgeted and actual) made from the city, Governorate or
national budget (from where to where).
o Payments (billed and actual) made by households.
o Payments (billed and actual) made by industry.
o Others.
Prepare a payment “flow chart” for each of the payments made by waste generators and
describe the roles and responsibilities of each of the “intermediaries” which the payment
passes through and describe how the funds are allocated to different functions. Describe
how the waste management financing and payment system provides financial incentives
to the various stakeholders.
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3.1.2. Organisation in the City
The Consultant will study the organisation of solid waste management in the City and compare
its findings with best practices in solid waste operations and identify areas for improvements.
3.1.3. Waste collection and transportation
The Consultant will examine waste collection and transportation practices and identify areas for
operating and financial improvement.
The Consultant will describe how waste is taken to the collection points from the household and
by whom (men, women or children) and how often. Any concerns and /or priorities for
improvement of the services will be described and differentiated according to gender where
applicable. The Consultant will identify if there are any informal waste collection activities
taking place in the City. If so, the numbers of people involved, how it is undertaken and paid for,
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a socio-economic description of those carrying this out and whether these informal activities take
place on the dumpsite or in different areas of the city should be provided.
An assessment of current waste collection, recycling and disposal habits of residents, tendency to
separate waste, littering and general public awareness regarding the current waste management
systems will be appraised by visual inspections of collection points, site visits to the dumpsite,
research carried out by local team members and information provided by the client.
The Consultant should also look into route optimisation and developing an updated route
schedule to maximise use of existing and future resources.
Furthermore, the Consultant will assess the potential for private sector participation (“PSP”) in
waste collection and transportation and outline potential transaction structures for such
participation.
3.1.4. Waste treatment and the existing landfill
The Consultant will study the waste treatment practices at the existing landfill; compare them to
international practices and identify areas for improvement (if appropriate, including a comment
on how to capture the potential for recycling).
3.1.5. Paying for and financing of waste management
The Consultant will describe and assess how the current waste management system is financed
and will describe the system in terms of inter alia:
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Direct payments (budgeted and actual) made from the City budget (from where to
where).
Payments (billed and actual) made by households and the proportion this comprises of
their monthly expenditures.
Payments (billed and actual) made by commercial entities.
If data is available, the Consultant shall examine payment differences at both individual and
household level (i.e. women and men; single-headed households, elderly; people living with
disabilities, ethnic minorities and vulnerable groups in the community, etc.).
The Consultant will prepare a payment flow chart for each of the payments made by waste
generators and describe the roles and responsibilities of each of the intermediaries which the
payment passes through and describe how the funds are allocated to different functions.
The Consultant will describe how the waste management financing and payment system provides
financial incentives to the various stakeholders.
Based on the proposed waste management scenarios and the available financing mechanisms, the
Consultant will propose financing strategies (e.g. gate fees, electricity/heat/gas sales).
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3.1.6. Demand and affordability assessment
Based on information readily available (data generated by the City and municipal companies) the
Consultant will compile and present the demand and socio-economic data of relevance to the
Project including, inter alia:
a) Population data including historical development (number of people, general spatial
distribution), trends, growth rates, and any information useful for population projections;
b) Household incomes, household sizes, number of household members in employment
(disaggregated by gender and other relevant socio-economic and demographic
characteristics), average expenditures for essential goods etc.
c) Prepare likely future scenarios of the generation of solid waste in the City and demand
for disposing of waste materials.
d) Existing demand and terms for sales of sorted waste and/or recyclable raw materials
(plastics, paper and cardboard, glass). The Consultant shall study and confirm the
possibilities of off-take contractual arrangements between the Concessionaire and
existing and/or potential buyers of these materials, volumes and terms of such off-take
contracts.
e) Assess the level of tariffs (waste collection including separate waste collection if
applicable and green electricity) that would be affordable for customers, particularly mid
and low level income households, without causing a socially or politically unacceptable
financial strain. The Consultant will assess the affordability and willingness to pay of
both domestic and industrial customers taking into account the improved services and
current customer perception of service quality. The Consultant will assess affordability
and willingness to pay of men and women as well as people from other social and
demographic groups (i.e. elderly, youth and the disabled). The Consultant will liaise with
EBRD to provide an affordability assessment in line with the EBRD methodology.
Document and explain the research and analyses carried out that support the opinions
offered and state methodological assumptions. Examine the issues over the life of the
project, making assumptions about how real income will increase, how attitudes may
change, etc. Present comparisons with other countries/cities.
f) Evaluate whether non-residential users have any particular reason to object to the new
tariff levels. Assess whether there could be any impact on industrial or business location
decisions
g) Assess whether there are other factors that could lead to serious objections by users, City
or other politicians, or particular interest groups.
3.1.7. Waste Tariff Setting
The Consultant will evaluate current tariff setting policies, and recommend improvements. To
this end, the Consultant will, inter alia:
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Examine the current billing and collection methodologies and prepare recommendations
in accordance with the industry best practices.
Evaluate the current tariff formulae, determine to what extent all recurrent costs are
included.
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Recommend changes to the tariff setting formulae that ensures that the tariff sends
appropriate signals to market players to disincentives waste production and incentivise
waste separation.
Analyse if the benefits associated with gains in efficiency are shared between the
Concessionaire and customers in an equitable and transparent manner.
Identify cross subsidies (if any), if feasible, and establish a plan for the orderly phasingout of cross-subsidies over a three to four year period, ensuring that customer tariffs
remain affordable.
Calculate the appropriate tipping fee for the facilities (under financial assumptions to be
agreed with EBRD).
3.1.8. Biogas emissions and utilisation
The Consultant will assess and document current and anticipated levels of landfill gas emanating
from the existing landfill site and investigate measures to be taken to control (through flaring or
any type of capture) or utilise (for energy production) these emissions. The Consultant will in
particular assess and make recommendations about the technical and economic feasibility of a
further landfill gas recovery project in the existing landfill, in addition to the Landfill Gas project
under implementation by GAM. The consultant should also evaluate the possibility of capturing
and utilising gas from any treatment technologies proposed and the expected volumes and use.
The Consultant will assess the climate change mitigation impact (i.e. greenhouse gas (“GHG”)
emission reduction) of all control measures by calculating and documenting the expected GHG
reduction volume against the baseline emissions.
3.1.9. Estimation on GHG emissions reductions
The Consultant will, inter alia,
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calculate amount of GHG reduction from the proposed energy recovery from the waste
project, including potential CO2 reductions on a year by year basis;
model the improvement of energy production efficiency from the replacement of existing
energy generation by new more efficient technology (i.e. energy recovery from waste),
along with an increased shift to a scenario of using such technology. Estimate the total
annual GHG emission reductions achievable through the proposed technology and related
policies and processes in time series by 2028, compared to the business-as-usual case.
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3.1.10. Green Electricity Tariff Setting
The Consultant will, inter alia,
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Examine the existing legislation on tariff setting for waste-to-energy projects.
Calculate the appropriate green electricity tariff for the facilities (under financial
assumptions to be agreed with EBRD).
Detail steps to be undertaken by the City to get the required green tariff approved.
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3.1.11. Recycling
On the basis of the waste composition and on potential users of separated materials, the
Consultant will:
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Provide
an
inventory
of
the
potential
recyclable
waste
streams
(paper/glass/plastic/metals/organic fraction).
Assess indicatively the potential users of those materials taking into account the distance,
the quantity available and the market value.
Prepare an indicative cost/benefit analysis related to the implementation of two potential
models of waste recycling, based on separate collection and treatment of unsorted
municipal solid waste.
In particular, also based on the experience in other countries, the Consultant will assess the scope
for commercial utilisation of waste:
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That is unavailable in the local market (e.g. cullet for local glass industry).
Tyres recycling which could be used as fuel input in industry.
For the production of RDF as a feedstock for the cement industry.
For the production of compost.
As a feedstock of pre-treated waste in dedicated waste-to-energy plants.
The Consultant will review alternative collection systems including:
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Door-to-door collection.
Recycling stations (e.g. shared collection points).
A combination of the two options.
In this analysis the Consultant will assess capital assessment requirement for collection and
treatment and profitability for municipalities (e.g. special trucks/dedicated bins/sorting facilities).
3.1.14 Recovery ready (landfill only)
The Consultant will undertake a short analysis to assess if the essential requirements of a
recovery ready landfill (see Annex 5) are met.
3.2
Project proposal
Based on the findings of the baseline study, the Consultant will develop a project proposal. It is
expected that the following tasks will be completed:
3.2.1. Implementation plan
The Consultant should prepare detailed investments on the basis of waste measurement and
characterisation and recommendation of the most cost-effective waste management technologies.
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The selection of all Project components shall be clearly explained and justified within the context
of the outlined strategic requirements for waste processing and the budget proposed. The
Consultant shall also develop a staging/phasing approach to deal with the issue of possible
further budget constraints due to decreased affordability. Project components shall be shown to
be part of least cost solutions (in terms of capital as well as operation and maintenance costs) in
conjunction with an acceptable technical standard (in terms of quality and reliability).
For each of the sub-components selected, reasonable estimates of quantities and costs based on
applicable previous bidding experience in the country shall be prepared. Potential cost savings
upon implementation of the Project shall be identified and estimated. An operational costs
review shall be prepared and costs specified as either fixed or variable for each sub-component.
It is important that due care is shown in preparation of these cost estimates. Taxes, duties,
technical and financial contingencies are to be considered and specified. Financial contingencies
are to be calculated based on an investment schedule translating the Project implementation
timing (see below under financial analysis section) into investment figures during the loan
maturity period.
The Consultant should estimate the initial CAPEX along with providing detailed operating costs
and capital maintenance of the facilities for the whole Project period. On the basis of its cost
model the Consultant shall develop and outline the tariff structure(s) which would better fit into
the frame of the project investment. Foreign currency and debt service components shall be
specifically identified in the proposed tariff structure.
Different potential investment strategies or options shall be broadly outlined (and tentative cost
estimates prepared), including at least: (i) a minimum cost facilities strategy; and (ii) outline of
strategic development plans including improvement, rehabilitation and expansion over the next
20-25 years.
The Consultant will highlight available options on the basis of both financial and technical
criteria, including environmental and social issues and indicate the preferred one which could be
further developed into the priority investment programme (“PIP”). For the PIP, the Consultant
shall summarise in appropriate maps the location, capacity, and staging of major infrastructure
components and to explain and justify the proposed course of action.
Particular attention shall be given to:
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Existing facilities and studies and projects already prepared.
Examining alternative solutions.
Least cost staging/phasing of system expansions.
Maintenance and operation implications.
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3.2.2. Assessment of the appropriateness of the proposed technologies
The Consultant will assess the appropriateness of the proposed technologies in the WtE RFP.
This should include, but not be limited to, brief analysis of (a) up to date experience with these
technologies in similar countries of operation and emerging markets more generally, (b) cost
effectiveness of these technologies in the proposed context, particularly given the size and
density of the served population, the type waste generated locally (c) technical capability of local
experts to oversee project implementation and maintain the facilities post-completion,
(d) availability and cost of repair and maintenance contractors if required, (e) the potential
environmental and social impacts, risks and benefits associated with each technology, and
(f) other urgent investment needs in the waste sector in the region and their cost efficiency
relative to the proposed measures.
The Consultant is expected to screen out technologies that do not meet GAM objectives for the
projects in terms of affordability and maximum value from the project. A qualitative comparison
with alternative options for the project should be considered (such as landfilling). The Consultant
is expected to screen out technologies that are not feasible and focus only in those options that
have potential under the current circumstances of Amman WtE RFP Project options.
The Consultant should also take into consider the potential categorisation of the WtE options in
terms of the EBRD’s Environmental and Social Policy (ESP 2014), either A or B, and the
implications thereof (see Section 3.5).
3.2.3. Waste collection
The Consultant will review the waste collection arrangements in the City and make
recommendations for new waste collection points, or the remediation of existing ones, and
associated capital costs of construction of these points, and costs of waste collection containers,
as appropriate.
Additionally, the Consultant will develop a routing assessment to optimise collection and
transport of solid waste.
3.2.4. Collection trucks
The Consultant will:
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Provide information on the number of waste collection trucks required, the expected life
of these trucks and vehicle specifications.
Review investment cost estimates.
Review annual operational cost estimates.
Calculate the appropriate fee for the collection service (under the financial assumptions to
be agreed with the EBRD).
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3.2.5. Waste management option and disposal site location
The Consultant will carry out a detailed analysis to select the best waste management option and
disposal site location.
A. The Consultant will verify the selection of landfilling as one of the components of the WtE
solid waste management project for Amman, alongside the WtE technologies. Regarding
landfilling, the consultant will make recommendations regarding further detailed site
investigations. The Consultant will also select the disposal site location with the following
information:
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The most optimal location from an environmental/technical and social point of view.
Technical design acceptable and appropriate from a technical/environmental point of
view.
Design capacity and options for construction on existing landfills/dumpsites.
Technical options for the production of biogas from the waste (with and without source
separation).
Permitting procedures which have been/need to be carried out including details of any
environmental studies and public participation activities.
Which permissions have been received for the proposed site/design (include copies of
permits and translations to English).
Which permissions or activities (according to national, regional and local regulations) are
still required before the landfill can be upgraded, new sanitary landfill segments can be
built and start operating.
Investment cost estimates. This will include a cost estimated of the detailed design. The
Consultant will take into consideration the regulatory framework for preparing the
detailed design and the formal procedure for the detailed design approval; and annual
operational cost estimates.
Possibilities and systems for handling and storage of different categories of hazardous
wastes at the existing/new site.
The Consultant will first assess the possibility of upgrading the existing engineered landfill. If it
cannot be verified, the Consultant will identify the most optimal location for the new landfill site.
A comparison analysis will be carried out and justification for the chosen site will be presented.
Following this the Consultant will prepare a site plan and 3 typical cross sections.
B. Equipment
The Consultant will present the list and specifications of the technical equipment and mobile
equipment.
C. Costs
As agreed with the Bank, the Consultant will estimate either: (1) the volume of waste to be
removed and the associated costs of such a removal; or (2) costs for the construction of the
landfill/another waste management option and for the equipment.
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D. Standards
The Consultant will address a list of the international standards applicable to solid waste
management, including EU framework legislation on waste, EU waste management policies and
hierarchy, EU directives on landfills, and legislation on waste management operations and
specific waste streams such as IPPC BAT/BREF.
To ensure the highest possible environmental standards and that the Project is bankable from a
technical point of view, the new sanitary landfill shall comply with relevant EU standards.
3.2.6. Transfer stations (if required)
For any proposed transfer stations, the Consultant will assess the following:
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Describe the permitting procedure which has been carried out (or is needed) including
details of any studies and public participation activities;
Which permissions have been received for the proposed site/design?
Which permissions or activities (according to national, regional and local regulations) are
still required before the facility can be constructed and can start operation?
Review investment cost estimate.
Review annual operational cost estimate.
Calculate the appropriate tipping fee for the facility (under financial assumptions to be
agreed with the EBRD).
A. Design
The Consultant will select the sites for the implementation of the transfer stations in the City.
Graphical documents (maps, drawings) of these sites will be collected. The transfer stations will
be either newly built or fitted out in existing premises. The Consultant will provide a general
design of the transfer stations.
B. Equipment
The Consultant will prepare the list and the specifications of the technical equipment and mobile
equipment.
The transportation of the waste between the transfer stations and the landfill will be done with
specialized trucks. The Consultant will calculate the necessary parking garage and repair and
maintenance facilities needed for the proposed trucks and establish the type, quantity and
specifications of these trucks.
C. Costs
The Consultant will make an estimation of costs for the construction of the transfer stations and
for the equipment.
This assumes that the information stated above will be provided by the City. However,
whenever the information requested is not available the Consultant will make very best effort,
outside of the prescribed sources, to obtain the information required. Where no information is
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available the Consultant will make an assumption based on past experience and the information
that is available.
3.2.7. Transfer Trucks (if required)
The Consultant will provide a basic specification for the transfer trucks based on supplier
information as well as the number of trucks required and their expected life-time. The Consultant
will also review investment and annual operational cost estimates.
The information obtained will be used in the calculation of the appropriate fee for the waste
transfer service (under financial assumptions to be agreed with the EBRD).
3.2.8. Biogas Production, Landfill Gas Recovery, Organic Content Management
Approach and Utilisation
The Consultant will undertake a high-level economic and technical feasibility study of a landfill
gas recovery system on the new site including options for the use of the landfill gas (gas, heat
and electricity). The Consultant will also undertake an analysis of potential biogas utilisation of
appropriate technologies shortlisted for the WtE Project.
To the extent possible, the Consultant will complete Annex 1 of the ToR and assess the potential
GHG emission reduction potential and impact on climate change mitigation. The Consultant will
use the UK Waste & Resources Assessment Tool for the Environment (WRATE) or similar
approach to calculate carbon emissions associated with landfill. However, no allowance has
been made for drafting a Project Idea Note (PIN).
3.2.9. Waste processing and treatment facilities
For the WtE RFP Project options, the Consultant will assess the following:
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Is the location acceptable from an environmental/technical and social point of view?
Describe the permitting procedure which has to be carried out (or is needed) including
details of any studies and public participation activities;
Which permissions have been received for the proposed site/design?
Which permissions or activities (according to national, regional and local regulations) are
still required before the facility can be constructed and can start operation?
Develop an investment cost estimate.
Prepare annual operational cost estimate.
Calculate the appropriate tipping fee for the facility (under financial assumptions to be
agreed with the EBRD).
A. Design
The Consultant will select the sites for the implementation of the treatment plants in the City, in
addition to any existing sites already pre-selected for these future facilities. Graphical documents
(maps, drawings) of these sites will be collected. The Consultant will provide a general design of
the selected preferred waste processing plant.
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B. Equipment
The Consultant will prepare the list and the specifications of the technical equipment and mobile
equipment.
The transportation of the waste between the processing plant and the landfill will be done with
specialized trucks. The Consultant will calculate the necessary parking garage and repair and
maintenance facilities needed for the proposed trucks and establish the type, quantity and
specifications of these trucks.
C. Costs
The Consultant will make an estimation of costs for the construction of the processing/treatment
plants and for the equipment.
3.2.10. Financial Analysis of the City
The purpose of this task is to assess the current financial capacities of the City to fully support
operations and financing of the Project. This analysis should notably include:
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Assessment of the financial viability of the City via analysis of its (approved) annual
budget for the period of 2011-2014 and plan for 2015;
Analysis and assessment of the debt profile of the City for the period of 2011-2014 and
plan for 2015.
Affordability of the WtE RFP. Capacity of the City to pay for the WtE RFP Project
options. This should meet the requirement under the PPP Law.
3.2.11. Financial model and economic analysis for the Project
The Consultant will prepare a financial and economic model (using Microsoft Excel) that will be
in line with the Project Proposal (see Sec. 3.2), covering a period of 25 years. The Consultant
shall, taking into account the EBRD’s environmental, technical and procurement policies and
procedures, identify those investments that best fit within the scope of the Project and within the
estimated project budget. The Consultant shall prepare a report with justified recommendations
for consideration by the Bank.
The financial and economic model will be prepared in nominal JOD and USD, considering the
impact of macro-economic scenarios provided by EBRD, together with a financial summary, and
including key ratios, translated into the currency of the financing to be provided. The Consultant
is requested to prepare the model in line with the Bank’s financial modelling standards (see
Annex 2).
The Consultant will have to carry out the following specific tasks:
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Set out the financial and economic rationales and justifications for the proposed Project
components and long term investment plan.
Recommend the most economic financial structure for the Project, considering the
technical and contractual structure proposed.
Study and confirm the financial and economic viability of new and innovative
technology, specifically in economic savings, to be achieved in the Project.
Calculate and discuss sensitivity to changes in key income and expenditure variables,
including fx and interest rates, and assess the risks for the Project.
Prepare a Cost Table, giving best estimates of the costs of project preparation including
preparation of detailed design documentation, construction/implementation, works
supervision costs, based on currently available information. Cost estimates should be
presented separately for each segment, based on local or other relevant construction
markets.
Identify potential financial incentives, rebates, and tax credits that may apply and assess
their viability in close collaboration with the City.
Include sensitivities on alternative waste and green electricity tariff and sales scenarios,
including value recovery, and determine an appropriate tariff adjustment policy, which
will ensure the financial viability of the Project.
Assess the financial impact of the Project by comparing the incremental costs (capital and
recurrent) of the Project with the incremental revenues or savings it will generate and
estimating the financial internal rate of return (“IRR”) and the economic rate of return on
the investment (“EIRR”).
Calculate all the financial ratios required to assess the financial feasibility of the Project
from the City’s point of view and in line with the expected loan.
3.3
Project implementation plan
The Consultant shall prepare a Project implementation plan for the WtE RFP options, which will
cover all aspects of project implementation, and include, inter alia:
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In close cooperation with the local authorities and other relevant stakeholders, the
Consultant will select the sites for the Project. The graphical documents (maps, drawings)
of these sites will be collected.
Project programme - a detailed Project programme (using appropriate presentation
format: e.g. linked activity programmes, etc.) for completion of the whole Project showing all activities and key events for design, approvals, construction, commissioning,
completion, etc.
Project budget - a detailed cost budget for the whole Project. This should be based on
existing proposals of cost estimates.
Procurement – the Project procurement plan. The plan shall be organised so as to
minimise the number of contracts. The Consultant to consider the possibility of a turnkey
contract for the facilities.
Project risk matrix - a risk matrix outlining the key challenges and risks associated with
the Project and the measures proposed to deal with them.
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Financial and operational improvement plan – a proposal on how to address the key
financial and operational areas in which the Citycould consolidate or strengthen its
performance and its underlying creditworthiness.
Review the needs in the City and draw up a detailed investment programme, including
but not limited to the collection vehicles, the closure of the existing landfills or
dumpsites, the building of the new sanitary landfill, cost of the transfer stations (if
applicable).
On the basis of waste characterisation recommend the most cost effective technology for
solid waste treatment plant.
3.4
Environmental and Social Assessment
Prior to undertaking the Environmental and Social Assessment, the Consultant is required to
screen the Project proposal against the EBRD’s Environmental and Social3 Policy (“ESP”)
(2014)4 and associated Performance Requirements (“PRs”) to determine the project category (A
or B). New landfills are typically categorised as A (see Appendix 2 of the ESP) while upgrades
to existing landfill sites and waste management systems (including transfer stations, etc. are
typically categorised as B. The Project proposal and Project category will need to be discussed
and agreed with the EBRD prior to proceeding with the Environmental and Social Assessment
(Section 3.5.4) and Environmental and Social Audit (3.5.5)- see reference to Inception Report.
The scope of work described below is applicable to a typical brownfield category B project.
Should the Project proposal involve any Category A components the Terms of Reference (ToR)
for the E&S Assessment will be revised by the EBRD to include an Environmental and Social
Impact Assessment (ESIA) in line with the ESP. The revised ToR will be agreed with the
Consultant together with the necessary cost implications.
For feasibility study costing purposes the Consultant should consider the following tasks:
3.4.1. Applicable requirements for the E&S Assessment
The E&S Assessment is to be carried out in accordance with:
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Applicable local, national and regional requirements, including those related with
environmental and social impact assessments / EIAs and associated public disclosure and
consultation requirements;
The EBRD’s ESP (2014) (and the incorporated Performance Requirements (PRs)), and
relevant European Union (EU) requirements (including, but not limited to, the EU EIA
Directive (as amended), EU Waste Directive, EU Landfill Directive, etc.); and,
Relevant international conventions and protocols relating to environmental and social
issues, as transposed into national legislation.
The ESP (2014) defines social as “those issues which pertain to project-affected people and their communities and
workers and related to socioeconomic status, vulnerability, gender identity, human rights, sexual orientation, cultural
heritage, labour and working conditions, health and safety and participation in decision making”.
3
4
Available at http://www.ebrd.com/downloads/research/policies/esp-final.pdf
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3.4.2. Objectives of the E&S Assessment
The objective of the E&S Assessment is to identify and assess the potentially significant existing
and future adverse environmental and social impacts associated with GAM’s current operations
and the proposed Project, assess compliance with applicable laws and the EBRD ESP and PRs,
determine the measures needed to prevent or minimise and mitigate the adverse impacts, and
identify potential environmental and social opportunities, including those that would improve the
environmental and social sustainability of the Project and/or the associated current operations.
The assessment process will be commensurate with, and proportional to, the potential impacts
and issues of the Project and GAM’s existing operations. The assessment will cover, in an
integrated way, all relevant direct and indirect environmental and social impacts and issues of
GAM’s operations, the Project and the relevant stages of the project cycle (e.g. pre-construction,
construction, operation, and decommissioning or closure and reinstatement).
The Environmental and Social Assessment (as defined in Section 3.5.4) will also determine
whether further studies are required, focusing on specific risks and impacts, such as climate
change, human rights and / or gender.
The Environmental and Social Audit (as defined in Section 3.5.5) is required to GAM’s current
operations in terms of compliance with national legislation, national or local permitting
requirements, the relevant provisions of the EBRD Environmental and Social Policy and
Performance Requirements (2014) and pertinent EU environmental standards. Further, the audit
must review possible historical environmental and social issues, such as potential contamination
of soil and/or groundwater or land acquisition disputes.
Specifically, the Consultant will:
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Identify existing and Project-related environmental and social impacts and risks;
Describe and characterise a relevant environmental and social baseline commensurate
with the risks posed by the current site operations and the Project;
Assess potential gender aspects and priorities among nearby communities to understand
women’s and men’s concerns (e.g., determine women’s current activity schedules/ waste
management practices, attitudes towards public health and community cleanliness, etc.).
Carry out E&S Assessment and Audit and develop a draft E&S Assessment report in
accordance with the Bank’s requirements as defined in the ESP, including a Compliance
Summary table with the Bank’s PRs;
Prepare a draft Stakeholder Engagement Plan (SEP), draft Environmental and Social
Action Plan (ESAP) and draft Non-Technical Summary (NTS);
Identify if any additional studies will be required to cover relevant aspects in greater
detail (eg. biodiversity, resettlement, retrenchment, etc.). (Any such work will be
commissioned under separate Terms of Reference); and,
Assess the current and future traffic and road safety risks to workers and affected
communities, with consideration to increase in truck movements, potential routes and
general road traffic safety management.
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Finalise all documentation further to the EBRD, other lenders’ (if involved) and GAM’s
comments.
This Terms of Reference for the E&S Assessment refer to various E&S guidance documents
(e.g. E&S Guidance 1). These are available as a separate package of E&S guidance documents.
3.4.3. Review of Available Data and Site Visit
The Consultant will review the studies and baseline data available from GAM as descried in
Section 2 as well as other available environmental and social documentation including ESIAs.
Data and documentation should be presented in English. This list is not exhaustive and the
Consultant must be prepared to review, and also request, further documentation that does not
appear above.
Following the review of available data, the Consultant will visit the site, to obtain any
supplemental information needed to complete the E&S Assessment (Section 3.5.4) and carry out
the on-site activities necessary to fulfil the E&S Audit (Section 3.5. reporting requirements. This
sub-task may take place in parallel to Tasks 1 and 2.
The data review process will include a simple media search to determine whether any relevant
issues regarding the Project or GAM have been reported through the media and to determine the
importance of these through additional verification during the due diligence work. If no relevant
issues are identified through this process the Consultant will include a statement to this effect in
its report.
Following completion of the data review and site visit the Consultant will deliver a summary of
key findings.
3.4.4. Environmental and Social Assessment
Please note that that the environmental and social assessment should be commensurate with the
Project and its associated risks and impacts. It should be a high level assessment focusing on
key risks and impacts. A comprehensive Environmental and Social Impact Assessment of the
Project is not required. Where available the E&S assessment should refer to (and review) the
local EIA done for the Project.
Project Description & Identification of Relevant Associated Activities & Operations
The Consultant will prepare a description of the Project including details of any alternatives5
considered for the project and information on neighbouring operations and activities. In
accordance with EBRD PR1, paragraph 9, the Consultant will identify:
5
Project alternatives to include: Zero (“no project”) alternative, siting and routing alternatives, infrastructure and
traffic connection alternatives, design alternatives
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
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Any potentially significant environmental and social issues or risks associated with
relevant other activities or facilities, which are not part of the Project but which may be
directly or indirectly influenced by the Project, exist solely because of the Project or
could present a risk to the Project;
Cumulative impacts of the Project in combination with impacts from other relevant past,
present and reasonably foreseeable developments;
Unplanned but predictable activities enabled by the Project that may occur later or at a
different location; and,
Environmental and social risks associated with the primary supply chains central to the
Project’s core operational functions.
Analysis of Legal Requirements
The Consultant will identify applicable local, regional and national environmental and social
laws and regulatory requirements of the jurisdictions in which the Project operates, including
those laws implementing host country obligations under international law. The Consultant will
analyse local/national assessment and permitting requirements and the EBRD environmental and
social requirements and compare them within a gap analysis in tabular format.
As required, the Consultant will identify any issues that require legal interpretations for the Bank
to raise with its legal advisors. The Consultant is not required to provide legal opinions.
The Consultant will identify, review and take into consideration any relevant strategic level
assessment documentation.
Baseline Conditions
The E&S Assessment will include a review of the aspects of the physical, biological and socioeconomic environment likely to be affected by the proposed Project. The Study shall also
identify respective needs and concerns of different disadvantaged groups and/or those with less
voice, such as women, to be addressed in the design, implementation, and monitoring and
evaluation of the project (e.g., Include analysis of participation of women in waste management,
income generating activities and decision making). Indicative guidance on the contents of the
overall assessment is provided in E&S Guidance 1 of the E&S guidance pack.
The baseline assessment will include consideration of the inter-relationship between the relevant
factors, as well as the exposure, vulnerability and resilience of these factors to natural and
manmade disaster risks.
Project Assessment
In accordance with the Bank’s ESP (2014), the Consultant will analyse the potential
environmental and social impacts and risks of the Project, as well as opportunities that the
Project may provide, including infrastructure development (e.g. water, wastewater, a heat and
electricity distribution networks, transportation access) and other associated facilities, for which
the EBRD financing is being sought. Include description of women’s and men’s economic
activities and health status tied to buying and selling household garbage, re-using and recycling
waste materials, collecting and disposing of human and solid wastes in a safe manner, and
keeping the streets clean, etc.
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The E&S Assessment will include a review of the likely effects of the proposed Project on the
physical, biological and socio-economic environment to provide an identification and
characterisation of potential E&S impacts, including beneficial (as well as adverse) impacts.
This review will be structured to include all relevant stages of the Project’s life, e.g. construction,
operation and maintenance, closure and decommissioning, and residual E&S impacts. The level
of analysis and reporting will be commensurate with the risk magnitude of the identified issues.
Indicative guidance on the contents of the overall assessment is provided in E&S Guidance 1 of
the E&S guidance pack. Note, if the assessment determines that there are potential risks
associated with waste pickers, resettlement, impacts on livelihoods and expropriation, the
Consultant will need to discuss and agree with the EBRD on the specific requirements to address
these risks including the potential need for a Resettlement Action Plan or Livelihood Restoration
Plan.
As part of the Project Assessment, the Consultant will also carry out a GHG assessment of the
project, including the pre-investment GHG emissions in CO2e and post-investment increase or
decrease in emissions. EBRD’s GHG Assessment Methodology can be found at:
http://www.ebrd.com/downloads/about/sustainability/ghgguide.pdf
A GHG Assessment of the project will be conducted in line with the EBRD’s GHG Assessment
Methodology or similar.
Management of Impacts and Issues
For each identified adverse future impact, issue and/or risk, the Consultant will propose
measures to avoid, minimise, mitigate or compensate for them.
EBRD PR Compliance Assessment
Based on the results of the E&S Assessment, the Consultant shall evaluate the compliance status
of the Project with the EBRD PRs using the format provided in E&S Guidance 2 of the E&S
guidance pack. Note that the compliance assessment should also take into consideration the
findings of the E&S Audit (Section 3.5.5).
3.4.5. Environmental and Social Audit
The E&S Audit is required to review the current and, to a limited extent, past operational
performance of GAM’s existing operations. Key issues to be covered under the E&S Audit may
include, but not be limited to:
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A review of GAM’s existing environmental and social management systems, policies and
practices;
Organisational capacity and resources, including description of the number of personnel;
number and percentage of women and men in total staff count as well as across all
levels/categories
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
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Human Resources and employment (e.g. child labour, forced labour, and nondiscrimination, workers’ organisations, contractor management, retrenchment and
employment) policies;
A review of equal opportunities policies and practices in GAM; assessment of potential
employment opportunities for under-represented groups in the workplace (i.e. women or
men, people with the disabilities, different age groups, ethnic groups, etc.) and
recommendations on what measures need to be made or what policies need to be revised
to ensure equality of opportunity in GAM;
Occupational health and safety (local and national requirements, applicable EU/
international requirement and standards, key health and safety issues, control and major
accident hazards, current health and safety monitoring programme, summary of
regulatory compliance status, use of PPE and safety equipment, summary of health and
safety expenditures, emergency response etc.);
Pollution prevention measures available at the facilities (e.g. adequacy and effectiveness
of landfill linings, waste covering and compacting, leachate collection and treatment
system and gas extraction systems, etc.) and overall regulatory compliance with national
requirements and pertinent EU standards (EU Waste and Landfill Directives). In
addition, this assessment will need to review compliance with best international practice
as a benchmark against current operations and planned upgrades;
Waste recovery and recycling (e.g. composting);
Industrial hygiene (including worker exposure, and rates of industrial diseases) and
worker health and safety;
Use and management of hazardous substances (if applicable);
Community health, safety and security as it relates to GAM’s existing operations (e.g.
traffic management, odour; access to the site and other facilities, construction works,
etc.);
Major hazards assessment and management; environmental management plans in the
event of an incident, accident or spill;
Current policy and practice in relation to avoidance of third party intrusion into
potentially hazardous areas (fences, security, personnel, others);
Management of potentially hazardous works;
Noise and vibrations both during construction and operation of GAM’s facilities;
Presence of waste pickers and livelihood impacts;
Overview of current GAM’s policy and procedures regarding land acquisition
(compensation policy, consultation activities related to land acquisition including
grievance management, if applicable);
Identification of potential past environmental liabilities which may affect the Bank (e.g.
soil and ground water contamination as a consequence of past and present operations);
Overview of the GAM’s supply chain (e.g. suppliers of main materials and resources
including energy; presence of women-owned businesses) and identification of relevant
environmental, social, labour and/or reputation issues; and
Public interaction, including historical responsiveness to public comments, complaints
and questions. The audit should also identify the GAM’s main stakeholder groups and
current stakeholder engagement activities in line with PR10.
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The Consultant will be guided by the relevant requirements of the Bank’s E&S Performance
Requirements. The findings of the E&S Audit should also be considered in the completion of the
PR compliance assessment.
3.4.6. Reporting
The Consultant shall prepare the following reports of the assessment findings.
Inception Report (Summary of Key Findings)
On completion of the data review and site visit, and following the identification of the Project
proposal, the Consultant will deliver an inception report. This report will include a summary of
key environmental and social findings, a description of the Project proposal, an indication of the
project categorisation and will highlight the need for any additional studies, e.g. in relation to
resettlement, livelihood, retrenchment, biodiversity, etc.
E&S Audit and Assessment Report
The Consultant will provide a concise but comprehensive report of the overall E&S Audit and
Assessment. The guidance for the report content provided in E&S Guidance 1 of the E&S
guidance pack may be used to structure the report but the Consultant is expected to use their
professional experience to determine the final contents. The report must contain a properly and
fully completed PR Compliance Assessment table as per E&S Guidance 2 of the E&S guidance
pack.
Additionally, as part of this task, the Consultant will provide the following representations to the
Bank regarding Policy and PR compliance issues:
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
Confirm whether this Project, including existing and future components, will be able to
meet the relevant EU standards on waste management and landfill design, and whether a
derogation from the EBRD’s ESP will be required;
If the derogation would be required, then:
o confirm to what extent waste management will be improved/reached, and provide
a quantitative risk-based assessment of associated health and environmental
impacts;
o confirm how much further investment is needed to bring GAM operations into
full compliance with EBRD PRs.
Environmental and Social Action Plan (ESAP)
The Consultant shall develop a comprehensive ESAP to address issues identified during the E&S
Appraisal and the E&S Audit. The ESAP will focus on those issues that are required to bring the
operations into compliance with the EBRD’s requirements and will be presented and sequenced
by PRs. Actions identified must be numbered, clearly defined, indicate a time frame for
completion (with specific reference to those actions that must be completed before financial
close if appropriate) and a responsible party specified. Further, each item must contain a
description of the factors that will be used to determine when the identified action is
closed/completed. The Consultant will also inform GAM about any material budget implications
of ESAP items (although this information may not be required in the public domain).
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The ESAP will be compact and, if needed, details will be included in sub-plans referenced in the
main ESAP. The required format the ESAP is given in E&S Guidance 3 of the E&S guidance
pack.
Stakeholder Engagement Plan (SEP)
The Consultant shall prepare a draft SEP in compliance with the PR10. The scope and level of
detail of the SEP will be scaled to fit the needs of the Project and the objectives of EBRD PR10.
Following review of the Project operations, the Consultant will propose a format best suited for
the specific Project needs. Guidance for the contents of an SEP is provided in E&S Guidance 4
of the E&S guidance pack.
The Consultant will prepare the SEP in English and once approved by the EBRD, translate the
SEP into Arabic.
Non-Technical Summary (NTS)
The Consultant will prepare, in consultation with GAM, a concise, over-arching, standalone
NTS. The NTS will be written in non-technical language and the Consultant will ensure that the
NTS can be used to demonstrate compliance with the EBRD requirements, and provide
confirmation that the documents are ready for public disclosure.
An indicative list of issues for the NTS is given in E&S Guidance 5 of the E&S guidance pack.
The Consultant will prepare the NTS in English and once approved by the EBRD, translate the
NTS into Arabic.
3.5
VfM Analysis
The Consultant is tasked with calculating the VfM of the DBOT model by calculating the lower
risk-adjusted cost of the WtE RFP Project and the traditional procurement (overall the
assessment for the GAM solid waste management case).
The Consultant shall:
 Define inputs categories in VfM analysis of the GAM project
 This should include at a minimum: capex, opex, finance, technology costs, and
management options expressed in monetary terms
 The Consultant should identify what are the main risks that need to be quantified during
the VfM assessment
 Assess Solid Waste PPPs within the context of overall Central Government and
Municipal priorities and funding commitments
Other factors that should be considered within the VfM methodology include whether to what
degree the Project provides for the following. Only a qualitative assessment of this requirements
is needed:
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o The optimum allocation of risks between the various parties –requires that risks
are allocated to the party, or parties, which are best placed to manage and
minimise these risks over the relevant period;
o A focus on the whole life costs of the asset rather than only the upfront costs
involved;
o Integrated planning and design of the facilities-related services through an early
assessment of whether the possible integration of asset and non-asset services
(e.g. soft services) should deliver VfM benefits;
o The use of an outputs specification approach to describe the Authority’s
requirements which, amongst other things, allows potential bidders to develop
innovative approaches to satisfying the service needs of the procuring authorities;
o A rigorously executed transfer of risks to the parties which are responsible for
them, ensuring that the allocation of risks can be enforced and that the costs
associated with these risk are actually borne by the parties in the manner
originally allocated and agreed;
o Sufficient flexibility to ensure that any changes to the original specification or
requirements of the procuring authority and the effects of changing technology or
delivery methods can be accommodated during the life of the project at
reasonable cost to ensure overall VfM;
o Sufficient incentives within the procurement structure and the project contracts to
ensure that assets and services are developed and delivered in a timely, efficient
and effective manner, including both rewards and deductions as may be
appropriate;
o The term of the contract to be determined with reference to the period over which
the procuring authority can reasonably predict the requirement of the services
being procured. This will require careful considerations of factors including:
potential changes in end-use requirements; policy changes; design life of the
asset; the number of major asset upgrades or refurbishments during the period of
the contract; potential changes in the way services could be delivered (e.g.
technical advancements); and the arrangements for the asset at expiry of the
contract;
o Sufficient skills and expertise in both the public and private sectors to be
determined and secured, and these are utilised effectively during the procurement
process and subsequent delivery of the project; and
o Managing the scale and complexity of the procurement to ensure that
procurement costs are not disproportionate to the underlying project(s).
The above considerations, among others provided by the Consultant, should be included in
qualitative and quantitative (if possible) levels. The quantitative analysis should be developed
using an Excel-based model, with a ‘dashboard’ so that GAM, its counterparts and any relevant
stakeholders can readily use and apply it.
The Consultant shall:
 Undertake the assessment of those criteria for all delivery models; and
 Make a recommendation of delivery models that best suit the objectives of the project
and the screening criteria.
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A first assessment on the quatification of risk tranferred for the diferent delivery models
available should be presented for GAM to comment.
The Consultant should incorporate all comments to the extent possible, keeping with common
practice for VfM analysis.
Upon successful refinement, the Consultant will complete the VfM calculation and prepare a
final VfM assessment.
In this task the Consultant will calculate risk-adjusted cost of DBOT and the traditional publicly
funded and operated delivery model. The consultant should also consider the level of
affordability by users and GAM, together with potential incentives given by them.
These calculations of VfM should be discussed and presented individually to the relevant project
teams within Government and GAM as a means of verifying the sets of inputs and assumptions
made for the project. These VfM assessments for the projects being actively prepared with
possible EBRD financing shall be shared also with EBRD.
The VfM assessment will also include an estimation of the budget requirements for the Project
under the delivery model that results in best Value for Money.
4.
IMPLEMENTATION ARRANGEMENTS AND DELIVERABLES
The duration of the assignment will be 14 weeks. The Consultant shall report to the EBRD whilst
liaising with representatives of the City. The Consultant shall continuously report to Nodira
Mansurova in Banking. For E&S Assessment (ESDD) part of the work the Consultant should be
in contact with James Lea-Cox, the EBRD’s lead environmental specialist for the Project.
GAM will provide the Consultant with working space, necessary furniture and telephone
connections.
GAM will designate senior officials to be the primary contact persons with specific
responsibility for assisting the Consultant and co-ordinating activities.
GAM will make available all of their records, plans, reports, designs and other documents as
appropriate, but it will be the responsibility of the Consultant to translate these documents, if
necessary.
GAM will provide access to all of their facilities and employees for questioning or assistance
relative to an understanding of the functioning of system facilities.
The Consultant shall be responsible for paying for all international telephone connections, office
supplies, external printing. The Consultant shall pay for all local transportation required by the
Consultant’s staff throughout the duration of the assignment.
The Consultant shall be responsible for providing suitably qualified interpreters/translators to
work with their staff.
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The Consultant shall produce in the course of the assignment the following reports:





Inception Report: Within 2 weeks of the assignment commencement, and following the
site visit, initial data review and initial opinion as to a project proposal, the Consultant
shall present to the Bank an Inception Report presenting the initial findings, with an
emphasis on findings having an impact on the time schedule and factors affecting these
Terms of Reference. The Bank will provide comments on the inception report to the
Consultant.
Draft Financial Analysis Report and draft Financial Model: Within 12 weeks of the
assignment commencement, the Consultant shall submit to the Bank a draft financial
analysis report and draft financial model, which shall generate preliminary financial
projections for the Company operations.
Draft E&S Assessment report: The Consultant shall submit to the Bank
o Draft Environmental and Social Audit and Assessment Report, which includes a
PR compliance table (see E&S Guidance 1 & 2 of the E&S guidance pack) –
within 12 weeks of the Assignment Start Date
o Draft Environmental and Social Action Plan (ESAP) (see E&S Guidance 3 of the
E&S guidance pack) - within 12 weeks of the Assignment Start Date
o Draft Stakeholder Engagement Plan (SEP) (see E&S Guidance 4 of the E&S
guidance pack) – within 12 weeks of the Assignment Start Date
o Draft Non-Technical Summary (NTS) for disclosure to the public (see E&S
Guidance 5 of the E&S guidance pack) – within 12 weeks of the Assignment Start
Date
o Final documentation - within 2 weeks of receiving the Bank’s comments on the
draft versions. The final versions of the ESAP, SEP and NTS will be translated
into the local language(s).
Draft Final Report: Within 13 weeks of the assignment commencement, the Consultant
will submit a draft Final Report. This shall include: (i) an assessment of the existing
situation and facilities; (ii) an outline of a long term investment strategy; (iii) proposals
for components to be included in the PIP with cost estimates; (iv) an overview of cost
savings to be achieved after implementation of the Project, by component; (v) financial
model of the Company; (vi) a procurement strategy and procurement plan; (vii) the scope
of work for the project implementation team; (viii) the VfM analysis. The Consultant
shall distribute the draft Final Report in Arabic and English to the Bank and GAM for
comments and shall organise a joint meeting to present the Final Report (“Presentation”)
with all parties in the city of <City> within two weeks after distribution of the Report.
Final Report: To be submitted within two weeks after the Presentation date by the
Consultant, elaborating and reflecting all comments addressed during the Presentation,
and including summary information on the Project.
Six copies of all reports in Arabic and English are required; both versions shall also be provided
in electronic-readable format, in both Word and PDF. Supporting data in the Arabic language in
the appendices need not be translated for English versions of the documents.
4.1.
Donor visibility
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Given the assignment is funded through the EBRD’s donor funded technical cooperation
programme, the Consultant will be required to support the Client to ensure visibility of these
resources. Support on these visibility aspects can be obtained from the Bank’s Communications
Department. Measures could include but not be limited to:



All documents produced by the Consultant should mention donor support and bear the
logo of the donor, when appropriate.
Donor support to the project should be acknowledged in any public communication
(press releases, launch of facilities).
Local representatives of donors should be invited to any public event organised to
promote the project (press conferences, inaugurations, possibly stakeholder participation
programmes).
Please contact Lucia Sconosciuto (email: SconoscL@ebrd.com; tel: +44 20 7338 8155) for
further information. Some donor visibility guidelines can also be provided by the Bank to
Consultants at the start of an assignment.
CONSULTANT’S PROFILE
5.
The Consultant should ensure that the appropriately qualified experts are available, as required,
for each of the different tasks outlined above. It is expected that the assignment will be led by an
appropriately qualified team leader/solid waste engineer, accompanied by both key and
supporting experts. Based on the fields of expertise and the tasks mentioned above, it is proposed
that the team of the Consultant should consist at least of the following expatriate and local
experts:






Project Manager/Team Leader with a university degree or equivalent qualification with a
minimum of 15 years professional experience in the field of solid waste management,
with comprehensive experience of similar assignments in the region, as well as in
institutional and commercial management of solid waste companies. He/she should
demonstrate management and administration experience, including experience with
procedures of international financing agencies (preferably EBRD procedures). The large
number of different tasks and the complexity of administrational procedures require a
permanent presence of the Project Manager in the country during the project period of
intensive work on preparation of the FS.
Financial specialists with knowledge of the public financing and modelling.
Technical specialists and solid waste engineers.
Environmental and Social experts with experience in ESIAs and E&S due diligence,
health & safety, stakeholder engagement, public consultation and disclosure in the local
context, gender and inclusion expertise, and/or resettlement expertise, in solid waste
management sector with experience of similar assignments and with recent track record
in the region.
Resource efficiency expert with experience in waste management.
Institutional expert with experience of similar assignments.
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

Legal expert with relevant experience in the areas of natural monopolies regulation and
knowledge of Jordan’s tariff legislation.
Local experts with good communication skills and evidenced technical knowledge of
solid waste sector planning, design, implementation and operations.
The Consultant should integrate local professional skills/cooperate with local consulting
companies, in order to provide national experience. The Consultant shall engage Arabic speaking
staff on their team or arrange for translation/interpreting when necessary. All experts must be
independent and free from conflicts of interest in the responsibilities accorded to them.
ANNEX 1
RESOURCE UTILISATION AND GHG EMISSIONS TABLE
Parameter
Comments
Current Operation
Fuel Used
Include
any
quality
parameters available, e.g.
calorific value, sulphur
content, etc)
Amount
Estimated Performance PostInvestment
Unit
Amount
Unit
Oil
Gas
Coal
GJ / year
GJ / year
m3 / year
m3 / year
[Name]
tons / year
tons / year
[Name]
tons / year
tons / year
Total solid wastes recovered/recycled
tons / year
tons / year
Total solid wastes for final disposal
tons / year
tons / year
Total hazardous wastes for final
disposal
tons / year
tons / year
m3 / year
m3 / year
Lignite
Grid Electricity
Heat Purchased
[Other]
Raw Materials and Resources Used
Total quantity of water consumed
Process,
cooling
sanitary water
and
Product Output
Solid Waste
Waste Water
Total waste water generated
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BOD
Average for the year
mg/l
mg/l
COD
Average for the year
mg/l
mg/l
Suspended Solids
Average for the year
mg/l
mg/l
Phosphorous
Average for the year
mg/l
mg/l
Nitrates
Average for the year
mg/l
mg/l
SO2
tons / year
tons / year
NOX
tons / year
tons / year
Particulates
tons / year
tons / year
CO2
tons / year
tons / year
CH4
tons / year
tons / year
N2O
tons / year
tons / year
Air Emissions
HFCs
Specify
tons / year
tons / year
PFCs
Specify
tons / year
tons / year
tons / year
tons / year
SF6
CO2 Allowance (EU ETS) - EU Member States Only
2007
kt CO2
GHG Saving Opportunities
Describe any planned or identified potential opportunities
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2008
2009
2010
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ANNEX 2: GUIDELINES FOR FINANCIAL MODELLING AND
SUMMARY OF FINANCIAL INFORMATION
The Consultant must ensure that the financial model and analysis is accurate, structured, flexible
and transparent, and in line with the specific requirements laid out in the Terms of Reference.
The use of the FAST financial modelling standard (http://www.fast-standard.org) is preferred,
however not obligatory.
The Consultant is expected to present a financial model for the Project that fulfils the following
non-exhaustive conditions:
Accuracy
Terms
The model accurately matches all financial and operational assumptions
presented in the available DD information.
The model accurately matches all terms proposed to date in the Term
Sheet, including, but not limited to:
- Facility size, tenor, grace, interest, tranching, currency;
- Financial covenants as contractually defined.
Historical
The model includes the last 3 years of (audited) historical financial
statements (not applicable if a green field).
Projections
Projections for the running year are in accordance with latest available
estimates / interim results.
Currency
Summary table is in the loan currency or as agreed.
Impact of forex variations over time on Financial Statements has been
modelled correctly.
Balance Sheet
The model Balance Sheet is balanced under any variation of inputs.
Accounting
Standards
Financial Statements is modelled correctly as per IFRS (or local GAAP
if agreed).
Summary Sheet
The first output sheet of the model is the Summary Sheet set up in line
with the below instructions.
Check sheet
The model includes a separate check sheet, where all model calculation
checks are summarised and presented on an aggregate basis.
Structure and Flexibility
Columns/
time ruler
All sheets maintain a consistent column structure and time ruler
throughout the model.
Sheet order
Sheets are arranged so that calculation order flows from left to right.
Inputs
All inputs are separated in a specifically denominated sheet, with no
inputs (hard coded) outside them. The input sheet links through the
model, enabling a fully integrated, flexible model.
The source of each particular input shall be clearly stated in a comment
(e.g. Feasibility Study, EBRD information, etc.).
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Outputs
Outputs are presented in specifically denominated sheets, with no
calculations in them.
Formatting
Use consistent format styles to improve readability of the model.
Colour coding for inputs, link imports/exports across sheets, etc. are
consistently applied.
Simplicity
Complex calculations are avoided by breaking them down into more
basic steps.
No use of excel names.
Transparency
Circularity
The model does not have any circularity.
Macros
The use of macros has to be kept to a minimum. Macros are short,
concise and easily traceable.
External links
No links to external worksheets outside the model.
Hiding
The model has no hidden worksheets, rows or columns that include
data, whether material or immaterial. Grouping is allowed.
Offset accounts
The model does not have any unexplained "offset" account or entry to
offset mismatches.
Summary Sheet:
The model includes a clear, consistent one page summary to facilitate the understanding of the
financial aspects and drivers of a loan or investment as well as the degree of vulnerability to
identified risks.
The Summary Sheet is to be included as the first sheet in the model in the format shown below.
The Summary Sheet shall include:
1. 3 years of historic information (none if a green field);
2. At least the first five years of projected performance (or until beginning of principal
repayment, or the life of the loan if it fits on one page);
3. Key assumptions / drivers;
4. Related to a particular input can be precisely written;
5. Ratios (covenanted and others with standard definitions);
6. Breakeven Sensitivities (e.g. DSCR=1 or as agreed);
7. Income statement;
8. Balance sheet;
9. Cash Flow;
10. Any additional assumptions, sensitivities, and ratios if considered essential should be
included and fitted on the page.
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Summary Sheet for Municipalities:
Ratings History
S&P
Moodys
Fitch
Ratio Analysis
2012
(A)
2012
(A)
Historic
2013
(A)
Historic
2013
(A)
Budget
2014
(A)
2015
(F)
…
2019
(F)
2015
(F)
…
Historic
2013
(A)
2014
(A)
2015
(F)
Budget
2012
(A)
Historic
2013
(A)
2014
(A)
2015
(F)
…
2019
(F)
Own Revenues
Share of State Taxes (Legally entitled to)
Other State Transfers
Other Revenues
Budget
2014
(A)
Financial Summary (€ million)
2012
(A)
2019
(F)
Current Revenues
Current Non-discretionary Expenditure
Current Discretionary Expenditure
Interest Paid
Current Surplus(Deficit)
Performance
Current Surplus / Current Revenues
Net Surplus(Defecit) / Total Revenues
Current Revenue Growth
Current Expenditure Growth
Capital Revenues
Capital Expenditures
Capital Surplus(Deficit)
Debt Ratios
Total Debt / Current Revenues
Total Debt / Current Surplus
Debt Service / Total Revenues
Current Surplus / Debt Service
Net Surplus(Deficit) before Financing
New Borrowing
Debt Repayments
Net Debt Increase(Decrease)
Revenue Ratios
(Own Revs+Share of State Taxes) / Current Revs
Current Revenue / Total Revenue
Net Surplus(Deficit)
Expenditure Ratios
Debt Stock (€ million)
Non-discretionary Expenditure / Current Revenues
Current Surplus / Capital Expenditure
Capital Revenue / Capital Expenditure
New Debt / Capital Expenditure
Debt Redemption (€ million)
Loans
Bonds
Debt Redemption
Interest
Debt Service
Guarantees
Short Term Local Currency
Short Term Foreign Currency
Total Short Term Debt
Long Term Local Currency
2012
(A)
2013
(A)
2014
(A)
2015
(F)
…
2019
(F)
Long Term Foreign Currency
Total Long Term Debt
Total Debt
Guarantees
Payables
Cash & Liquid Assets
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Budget
…
2019
(F)
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Summary Sheet for Corporates:
(IFRS unless marked)
Key Drivers / Assumptions
Historic
2012
2014
(A)
…
(A)
Income Statement
Unit MM€ / IFRS Audited
Projected
2015
(F)
…
2019
(F)
Revenues
Volumes (units)
Prices per unit (€)
Other Revenues
Revenue
Cost of Sales
SGA
EBITDA
Depreciation
EBIT
Interest Expense
Other Costs/Income
Profit before tax
Tax incurred
Profit after tax
Dividends
Other Items
Profit for the year
Change in Net Worth
Balance Sheet
Unit MM€ / IFRS Audited
Operating Expenses
Fxd Costs (MM€ or % Rev.)
Var. Costs (MM€ or % Rev.)
Labour
Electricity (MM€ or % Rev.)
Other key raw material
Other relevant costs …
Ttl costs (MM€ or % of Rev.)
Total Cost/unit (€)
Macroeconomic
Exchange Rate
Ratio Analysis
Historic
2012
2014
(A)
…
(A)
…
2019
(F)
Ratios/Covenants levels
DSCR / @ xy
Current Ratio / @ xy
T.L. / T. N. W. / @ xy
T. Debt / EBITDA / @ xy
Other relevant …
Other Ratios
IRR (Project )
Return on Equity (Project)
Return on Sales
Return on Assets
Net Margin
ST Debt plus CPLT Debt
Payables
Accrued Expenses
Other ST Liabilities
Total Current Liab
Long Term Debt
Other LT Liabilities
Total Liabilities
Equity
Total Liab & Equity
Contingent Liab
Cash-Flow Statement
Unit MM€ / IFRS Audited
2014
(A)
2015
(F)
…
2014
(A)
2015
(F)
…
2019
(F)
Projected
Historic
2012
(A)
EBITDA Margin
Receivables (Days)
Payables (Days)
Depreciation/Capex
Sales/Fixed Assets
xx%
xx%
xx%
xx%
xx%
month
xx%
xx%
2015
(F)
…
2019
(F)
Cash
Receivables
Inventories
Total Current Assets
Fixed Assets
Other Assets
Total Assets
Projected
2015
(F)
…
Projected
2014
(A)
Historic
2012
(A)
Inflation
Growth rate
Other …
Debt sensitivity DSCR = 1.0
Decrease in Volume
Decrease in Price
Increase in Fixed Costs
Increase in Variable Costs
Increase in Capex
Implementation Delay
Local Devaluation
Mix (-% price +%costs )
Historic
2012
(A)
Operating Profit (EBIT)
Depreciation & Amortisation (+)
Gross Operating CF (EBITDA)
Changes in Working Capital (+/-)
Tax Paid
Net Operating CF
Interest Paid
Current Debt Repaid
Dividends Paid
Pre Investment CF
Capital Expenditure
Pre Financing CF
EBRD new Debt
Other new Debt
Change in Net Worth
Post Financing CF
Cash End
Equity Analysis (if required)
Entry Valuation (Company) M€
EBITDA Multiple
P/E or Other
Exit Valuation (Company) M€
Year of Exit
EBITDA Multiple
IRR % - Base Case
Cash on Cash - Base Case
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…
Projected
…
2019
(F)
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Annex 3: Standard measuring indicators and SRI impact indicators
Standard measuring indicators:
Sector
Solid Waste
Data point to be collected
Indicator
Total population benefitting
from solid waste
management services.
Number of persons with
improved
solid
waste
management services.
Annual reduction in tonnes
of CO2 equivalent due to
diversion of solid waste from
landfill disposal.
Tonnes and type (metals,
paper, glass, plastic, organic)
of waste diverted away from
landfill. Avg. CH4 (CO2
equivalent) content of solid
waste materials by type.
Projected after
implementation
completion*
Tonnes of waste disposed on
new and/or improved waste
disposal plants.
* measured two years after projected full loan disbursement
Total tonnes of waste
disposed.
SRI impact indicators (as applicable):
SRI
impact
indicator
Primary energy
saved
Unit
Data point to be collected
GJ/yr
CO2 emissions
reduced
ton
CO2e/yr
Water saved
m3/yr
Project energy use compared to baseline6 energy use.
Primary energy includes:
1. Direct use of fossil fuels
2. Direct use of biomass.
3. Use of electricity, multiplied by a loss factor to take into account
country average generation efficiencies and electricity grid losses7
Project CO2 emissions compared to baseline CO2 emissions.
CO2 emissions include:
1. Emissions as a result of direct use of fossil fuels
2. Indirect emissions as a result of the use of electricity8
3. Emissions of other Greenhouse gases (in particular methane 9)
expressed in CO2 equivalents.
Project water use compared to baseline water use. Water savings must be
determined for the following project activities:
1. Water recycling projects that recover wastewater streams for reuse
or alternative use.
2. Application of technology or management actions that lead to
effluent water quality improvements in regions with water
scarcity10
3. Water loss prevention and water demand management
6
The baseline is defined as the expected conditions without the project two years after full loan disbursement. The baseline
is compared to the conditions projected with implemented project two years after full loan disbursement.
7 For example, with an average electricity generation efficiency of 40% and grid losses of 7%, the primary energy use
(MWh) is 2.7 x the direct electricity use (MWh).
8 The CO2 emissions as a result of the use of electricity are determined by multiplying the use of electricity (MWh) with the
country specific grid emission factor (ton CO2/ MWh) in line with the joint MDB list of grid emission factors.
9 Tons of methane emissions (ton CH4) can be converted to tons of CO2 equivalents (ton CO2e) by applying the a factor of
25 (ton CO2e/ton CH4)
Qualifying for ‘water saved’: treated waste water with an effluent quality at or exceeding internationally
accepted effluent water quality standards.
10
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Material savings
ton/yr
Material use compared to baseline material use. Material savings must be
determined for project activities aimed at
waste minimisation:
1. Minimisation of waste streams by integrated measures (i.e.
improvement of existing installations, processes or
procedures/management)
2. Waste recycling projects that reuse waste as inputs into new
products or as a resource
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Annex 4: Definition of “Recover Ready” landfill
Recovery Ready (RR) landfill is a facility which could, and is intended to, be
retrofitted/combined with waste sorting/recycling/recovery technology when the necessary
financing and/or regulatory drivers are in place. The aim of building new facilities or
modifying existing facilities to be Recovery Ready is to reduce the risk of waste lock‐in or of
being unable to fully utilise the facilities in the future without recycling (stranded assets).
Recovery Ready is not a waste minimisation option, but a way to facilitate waste
minimisation in the future.
Essential Requirements of a Recovery Ready facility
The essential requirements represent the minimum criteria that should be met before a facility
can be considered RR. The project developer should:
1. Carry out a site-specific study in sufficient engineering detail to ensure the facility is
technically capable of being integrated with waste sorting, recycling and/or recovery
facilities, using one or more choices of technology which are proven or whose
performance can be reliably estimated as being suitable, considering financial,
economic, health, safety and environmental viability.
2. Demonstrate that there will be sufficient space available to construct and safely
operate sorting, recycling and/or recovery facilities. This will notably include
sufficient storage areas for recycled materials.
3. Identify realistic off-takers that could possibly use recycled materials/recovered
energy.
4. Identify other known factors, including any additional water/energy requirements that
could prevent installation and operation of a waste sorting, recycling and/or recovery
facilities, and identify credible ways in which they could be overcome.
5. Estimate the likely investment cost of establishing the waste sorting, recycling and/or
recovery facilities including transport and storage.
6. Periodically review and report RR status.
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