Progress Towards: New Sample Standard Bidding Documents for Design-Build-Operate DBO for Solid Waste Management

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Advance Towards: New Sample Standard Bidding Documents for Design-Build-Operate (DBO) for Solid Waste Management

Context for DBO for SWM in MNA Initiated as a feature of the Solid Waste Management Strategy for METAP nations - exhibited at Cairo gathering May 2000 METAP is Mediterranean Technical Assistance Program Financed by ESSD Norwegian Trust Fund - multi-year program Work started on DBO archives in 2001 Endorsed for 'pilot testing' in 2002

SWM Strategy for METAP Countries Guiding Principles for SWM in MNA Tackle quick issues first: insufficient accumulation & debasement by dumps Treat systemic reasons for issues: open mindfulness and institutional issues Begin to oversee squander as an asset: lessen, reuse, reuse (3Rs), monetary motivating forces

SWM Strategy for METAP Countries Immediate Measures close and restore dumps reinforce MSW administration vital interests in SWM offices Structural/Systematic Measures lawful system, institutional, bed recuperation and supportable financing, and so on. Nonstop/Permanent Activities 3Rs, screen ecological effects, screen execution of open and private part

SWM Strategy for METAP Countries MNA Region needs approx. $2.5 – 3.0 billion over next 10 years: 8% - Correction of Past/Current Problems 15% - Strengthen/Rationalize Collection 12%-Legal/Institutional/IWM Planning/Capacity Strengthening 65% - Facilities Investments

Role of Private Sector in SWM Improve effectiveness and lower costs all around centered execution destinations money related and administrative self-rule hard spending imperative Transfer new thoughts, advancements, abilities Take-on specialized dangers Maybe? - prepare venture reserves

Role of Public Sector in SWM Make clear partition between administration (i.e. operational) and administrative capacities Strengthen limit with regards to specialized supervision Set clear customer administration and quality levels Strengthen administration limit Improve direction of private administrators Reduce ecological and wellbeing impacts (externalities) Establish cost-recuperation and monetary manageability structure

Public Sector Institutions in SWM Urban zones ought to oversee squanders better to end up distinctly great "natural residents" decentralize accumulation administrations unify transfer operations where conceivable concentrate on cost recuperation and self financing enroll support of private division receive landfill as spine of incorporated frameworks Central governments ought to help urban territories create national approach and administrative system give specialized support and access to financing consider coordinating gifts for transfer externalities

Why We Started on DBO in SWM ? Involvement in Bank financed SWM ventures Difficult to develop a SWM office in 5 yrs Multiple obtainments cause moderate execution Feasibility contract Environmental and Social Safeguards Assessment Detailed building configuration contract Civil works contract Supervision of development contract Operations contract

Other Reasons for DBO in SWM Overlaps prompt to chaotic "handovers" Private part enjoys DBOs Can package with different exercises (e.g. dump conclusion, exchange stations, get to streets) Uses the solid specialized and venture administration abilities of private area Allows districts to concentrate their constrained HR on systemic SWM issues

More Reasons for DBO in SWM Incentives for cost adequacy PSD adjusted to nearby conditions One private administrator is in charge of outline, development and natural effects (does not claim or rent arrive) Prevents great landfills returning to open dumps Can incorporate other discretionary components: execution impetuses (e.g. carbon fund, reusing rates) Equipment buy Transfer of representatives

Characteristics of the DBO Intermediate stride in PSD Public segment financing and money related dangers Private segment specialized abilities and specialized dangers Typical length is 8 years: 1 year point by point configuration stage 2 years development stage 5 years operations stage Can package with other SWM needs Examples: dump conclusion, preparing and exceed Transitional stride to operational costs accepted by region

Again More Reasons for DBO After the DBO a region/utility still has choices: Operate itself as open division Continue with same private area administrator (e.g. yearly contract reestablishments) Bid another agreement to the private part

Key Features in the DBO Flexible pre-capability to pull in neighborhood and worldwide organizations (e.g. joint-wanders) Follows Bank acquirement rules: base is Standard Bidding Document Supply and Installation of Plant and Equipment (Nov 1997) Designed for use in Bank credits by Borrowers

Prerequisites to DBO for SWM 1. Social and Environmental Safeguards Assessment 2. Arrive procurement finished 3. Financing secured e.g. Bank advance for 5 yrs and focal/civil financing for 3 yrs 4. Attainability level site design drawings 5. Exchange counselors (lawful and specialized) for initial couple of exchanges for test reports

Key Features in the DBO Two Part Process (n ot two phase) Part 1: Pre-capability Sub-temporary worker's SWM specialized and budgetary experience is qualified Part 2 : Bidding One Envelope Bid Submittal-both specialized and monetary Unified Bid Evaluation Process Technical Evaluation: Pass or come up short assessment in view of considerably responsive Financial Evaluation: Pass or fall flat in view of generously responsive WINNER - Lowest assessed cost of actually responsive offers wins

Key Features in the DBO NOT A DESIGN COMPETITON BASIC CONCEPTUAL DESIGN SET OUT IN BID Important part for Technical Evaluation Committee 1. Configuration assemble criteria 2. Operations criteria 3. Staffing arrangement criteria DO NOT evaluate above criteria (lesson learned) Assistance by exchange counsels as well as supervision expert (lesson learned)

Key Features in the DBO Bid Price Structure Design-Build administrations – level month to month expense versus advance installments (lesson learned - no unit costs and amounts) Operations administrations - month to month expense Bottom line = add up to singular amount value Role of Supervising Consultant specialized assessment counselor acknowledgment of definite outline advance installments change orders

Key Success and Lessons Learned in Pilot DBO Successes Testing private segment response to DBO idea and record structure (San Fernando City – Philippines) Working crosswise over divisions and areas at Bank Procurement can be creative and adaptable Lessons For limit working in the segment When to utilize the DBO device Procurement process and substance of the offering archives

DBO Generic Documents Tab I – Pre-capability Documents Tab II – Bidding Documents Annex A - Draft Contract General Conditions Appendices 1 to 11 to the General Conditions Annex B - Various Bidding Documents and Forms (Bid Form, Bidders Price Form and Price Schedule, Bid Security Form, Performance Security Form, Bank Guarantee Form-Advance Payment and Form of Curriculum Vitae)

DBO Generic Documents Appendices to the General Conditions Appendix 1 - Special Conditions of Contract Appendix 2 - Terms and Procedures of Payment Appendix 3 - Technical Specifications - Appendix 3A - Design-Build Services - Appendix 3B - Operations Services - Appendix 3C - Technical Standards

DBO Generic Documents Appendices to the General Conditions (proceeded with) Appendix 4 - Site Appendix 5 - Service Area Appendix 6 - Contract Price Adjustment Appendix 7 - Incentive Compensation Appendix 8 - Liquidated Damages Appendix 9 - Existing Staff Appendix 10 - Operator's Personnel Appendix 11 - Operator's Bid

Key Sector Lessons Learned Hard to embed DBO in existing Bank credits Need to be genius dynamic with customers (recipient level and actualizing organizations) Use DBO cost investment funds for early exchange counsels (lawful, acquisition and specialized) DBO prepare constructs specialized and administration limit

Key Procurement Lessons Learned Start ahead of schedule with exchange guides (lawful, obtainment and specialized) Front-stack the limit building exertion with all in-nation partners DO NOT measure specialized assessment criteria – take after ITB 5.5 and not execution criteria in 3A, 3B and 3C Clearly characterize when configuration fabricate closes (DO NOT utilize unit costs and amounts) Clearly characterize when operations start

Next Steps Post DBO Bid Documents on Bank Procurement (OPCPR) site page as a Sample Edition Comments by email to OPCPR Considering specialized direction note on execution particulars (Appendixes 3a, 3b, 3c) Considering admonitory council to local RPA/RPM and undertaking groups