2012 Report on Roundtable Discussion on Contract Management for Municipal Solid Waste Management, Shimla Submitted by: Paradigm Environmental Strategies Pvt. Ltd.
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2012
Report on Roundtable Discussion on Contract
Management for Municipal Solid Waste Management, Shimla
Submitted by: Paradigm Environmental Strategies Pvt. Ltd.
Paradi
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Table of Contents
1 Introduction .................................................................................................................................... 3
2 Objectives ........................................................................................................................................ 3
3 Target group .................................................................................................................................... 4
4 Expected outcome ........................................................................................................................... 4
5 Feedback/ Outcome/ way forward .................................................................................................. 5
Annexure:
Annexure I: Contract Checklist
Annexure II: Checklist for the MSWPP performance and operation
Annexure III: Agenda
Annexure IV: Photographs
Annexure V: List of participants
Annexure VI: Presentation
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Roundtable Discussion in Shimla on Contract Management for Municipal Solid Waste Management
Person Present at Roundtable Meeting:
1. Dr. D. P Singh, Project Cordinator, MCS
2. Dr. Praveen Gupta, Environmental Engineer, HP State Pollution Control Board
3. Mr. Rajendra Chauhan, Department of Urban Development, HP
4. Mr. Ram Singh Thakur, Chief Sanitary Inspector, MCS
5. Mr. Shaked Ahmed, Admin I/C, HBEPL
6. Mr. Shekhar, DGM, Hanjer Biotech Energies Pvt. Ltd
Resource persons
1. Ms. Regina Dube, GIZ Delhi
2. Ms. Vaishali Nandan, GIZ, Delhi
3. Mr. Bernhard, International Expert, GIZ
4. Mr. Pravinjith, Paradigm Environmental Strategies Pvt. Ltd., Bangalore
5. Ms.Shweta Dua, GIZ, Delhi
6. Mr. Vibhor Sood, GIZ Shimla
1 Introduction
Municipal Corporation Shimla has chosen Hanjer Biotech Energies Pvt. Ltd as private
operator to design, development, construction, operation and maintenance of
Municipal Solid Waste processing facility. Aerobic Invessel technology has been selected
for the same.
2 Objectives
The main objectives of this rountable discussion are:
1. To get instill role clarity and responsibilities among various Stakeholders
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2. To clarify system procedure for smooth contract function
3. Operationlise the contract
3 Target group
The target groups were:
1. Municipal Corporation Shimla
2. Hanjer Biotech Energies Pvt. Ltd
3. Himachal State Pollution control Board
4. Department of Urban Development, Shimla
4 Expected outcome
The workshop proceedings/ discussion during the workshop
The rountable discussion began with an introduction by Ms. Regina Dube on the
cooperation extended by GIZ and the activities carried out so far. She recalled back the
RFP for the MSW plant which was prepared by GIZ and consequently Hanzer Biotech has
been selected in the evaluation process. Lots of thought have been incorporated to the
RFP and which will be meaningful only the contract is managed effectively.
After that Mr. Pravinjith K P from Paradigm Environmental Strategies Pvt Ltd. informed
the audience that Hanjer has been selected through a transparent bidding process and
he is now a key partner to the corporation in ensuring safe management of MSW. It is
the responsibility of the MCS and the other stakeholders that Hanjer gets a fair chance
to deliver according to contract. Since the contract document and its clauses are going
to bind each of the parities. This roundtable has been convened to quickly go through
the most important clause which have a bearing on daily basis. The implementation of
relevant clauses and remedial measures to avoid was discussed. The following points
were highlighted by him:
Hanjer should get valid consent to establish/operate, Environmental clearance
Valid Performance guarantees, Insurances, Public liability Insurance of Rs. 5.0
crores and their timely renewal is needed
Issues regarding environmental and social compliance risks permits
Quality and quantity of rejects to landfill and as percentage of incoming waste
Disputes between contractual and actual performance
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Implemented recording system should be able to accurately measure each of
nine service level indicators. This should be signed off by the MCS representative
as well as the Hanjer Plant representative.
Preferably in triplicate and two copies to be maintained at MCS and one with
Hanjer at the plant. Monthly Consolidated copy of compliance to the service
levels should be annexed with bills for ease in processing
Mr. Bernhard promised to prepare and give ready recknor for the inspection,
verification and maintenance of data by MCS which will prevent any contractual
differences.
The audience Regional Environmental Engineer of Himachal state pollution control
board reassured both MCS and Hanjer about full cooperation from their side. He
requested Hanjer to apply for all the consent which will be cleared fast.
5 Feedback/ Outcome/ way forward
Contract Checklist has been developed
Checklist for performance and operation of Municipal Solid Waste Processing Plant
has been prepared.
MCS to adopt the tools immediately
Hanjer to obtain all clearance immediately
Hanjer to keep in force all required insurance and guarantee insurance
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Annexure I: Contract Checklist
Sl No Contract Clauses Activities Primary responsibility
To be ensured by
3.4 Applicable permits List applicable permits and respective Authorities, validity, responsibility
Hanjer MCS
4.1 Appointment of Project engineer
Identified IE during operation and information to Hanjer. IE site office
MCS
5.1 Performance bank Guarantee
PBG of Rs 40. Lakhs and its validity Hanjer MCS
5.3 Implementation of WPF
Approved design drawings, Equipment data specifications, Spares list, Electrical drawings, Oil and lubricant data and stocks, Equipment Maintenance manual, Approved Standard Operating Plans
- All signed by MCS
Hanjer MCS
5.4 Insurance Valid insurance, Insurance declared value, coverage and risks, validity
Hanjer MCS
5.5 Environmental Compliance
Regular Social and HSE audits, safety and first aid trainings, List and Use of PPEs, ESI –PF payments
Hanjer MCS
5.9 General Obligations
Valid Public Liability Insurance of Rs 5.0 Crores and renewal List of Authorised persons and signing authority to be informed to Hanjer personnel and displayed at the gate
Hanjer MCS
5.12 Maintenance of records
Daily record of Vehicle no, Driver, Net weight of incoming/ outgoing waste, timing of entry/ exit. Separate registers for Raw waste, outgoing products and Outgoing rejects with triplicate gatepass, signed off by IE/ MCS representative
Hanjer MCS
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6.1 Specific Obligations
Declaration and enforcement of a NO Development Zone BY MCS, Ensuring SEHB does not transport to WPF- Biomedical/ Hazardous/ Construction and demolition waste, Timely written notice on events of defaults / force majeure
MCS Hanjer
7.2.1 Payments Determine and display Formal commissioning date, End date of concession, Opening of MSWP bank account for the remitting the post concession expense deduction and deduction of relevant 2% for 18 years and 5% for last two years
MCS Hanjer
Schedule 3.8 Standard Operating procedures
Approved SOP, Recommended spare list and minimum inventory, regular audit of these stocks
Hanjer MCS
Schedule 3.10 Service levels
Verifying and certifying claims/ defaults, issue notice, Minutes of meeting, Checking compliance scheduled , randomly, follow up on previous notices etc
MCS Hanjer
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Annexure II
CHECKLIST FOR MONITORING OF PERFORMANCE OF OPERATION OF MSWPP
Task Place Indicator PRIMARY
RESPONSIBLE
TO BE
ENSURED
BY
FREQUENCY
Waste quantities
delivered to plant At weighbridge
Tons/day
Origin
Truck license plate
Driver Name
Rejected waste
MCS PROJECT
ENGINEER DAILY
Compost output Storage of product
Tons/day
Compost quality
End user data
HANJER MCS DAILY
RDF output Storage of product
Tons/day
RDF quality
End user data
HANJER MCS DAILY
Plant rejects Storage of rejects Tons/day HANJER MCS DAILY
Waste quantities
delivered to plant At weighbridge Tons/month
Rejected waste MCS
PROJECT
ENGINEER MONTHLY
Availability of
plant/operation hours Log machines Operation hours/month HANJER MCS MONTHLY
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Balance of quantities of
input and
products/rejects
Weighbridge,
register of
products/rejects
Tons/month HANJER MCS MONTHLY
Operational health and
safety At plant
Safety records
Disability adjusted labour
years
HANJER MCS MONTHLY
Odour At plant
Complaints of odors,
Action taken to prevent
recurrence
HANJER MCS MONTHLY
Upkeep of records To be sent to MCS
Record of all data as
stipulated in concession
agreement
HANJER MCS MONTHLY
Compost quality At plant Batch certificates
End user data HANJER MCS MONTHLY
RDF quality
Output quality control
International standards HANJER MCS MONTHLY
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Annexure III
Roundtable Workshop for Contract Management on Municipal Solid Waste Management
Venue; Rotary Town Hall, Mall Road Shimla Date: 28th March,
2012
Target group: Representative of MCS, Hanjer, SEHB and SWM expert team
Date Time Agenda
28-3-12
9.30 am Hanjer Site Visit
11.30 -11.40 am
High Tea at Rotary Hall
11.40- 11.50 am Welcome Address by Ms Regina Dube, GIZ Delhi
11.50 -12.15 pm Scope of the MSW processing plant by –
12.15 – 12.35 pm Processing Technology in brief by - Mr.Bernard Shenk, GIZ International Expert
12.35- 12.55 pm Responsibilities of Stakeholders by-
12.55- 13.25 Typical Contractual Issues and how to resolve
13.25-13.30 pm Vote of Thanks
***
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Annexure IV : Photographs
Brief introduction about project by Ms. Regina Dube Stakeholders participation in meeting
Mr. Pravinjith is briefing about contract management Discussion among stakeholders regarding contractual
issues
Roundtable Discussion in Shimla on Contract Management for Municipal Solid
Waste Management
Pravinjith KP
Paradigm Environmental Strategies Pvt. Ltd
Salient features
Name of Operator: Hanjer Biotech Energies (P) Ltd Scope: Design, development, construction, operation and
maintenance of municipal solid waste processing facility Technology: Aerobic Invessel compost plant, RDF, Recyclable
and inert processing, Environment Management: leachate treatment, etc Concession period – 20 years Start of concession – 270 days from work order date of 28 July
2010,----- ie 28 Apr 2011
Detailed Scope
to receive MSW at the Receipt Point of the WPF to inspect the MSW and to identify Rejected Waste
as per the provisions of Article 5.7 in such manner as it deems fit, and refuse to accept the Rejected Waste
to process the Solid Waste in the WPF to receive all fiscal incentives and commercial
benefits accruing in respect of or on account of the MSWPP including the CDM benefits as per the agreed ratio and also benefit from sale of all byproducts / recyclables
Key Clauses - 3.4 Applicable permits
The Concessionaire shall obtain and maintain the applicable permits
responsible and ensure compliance with the permit terms and conditions.
Indicators: List applicable permits, Authorities, validity, responsibility
Key Clause 4.1 Procedure for Appointment
MCS will appoint Project Engineer for the construction The cost of Rs 2.0 lakhs/ month for the Project Engineer
shall be borne by Hanjer. Costs shall be deducted from the fees payable to Hanjer. Hanjer shall provide office space and basic amenities
within the project site.
Indicator: Identified IE and information to Hanjer. IE site office
Key clause 5.1 Performance Bank Guarantee (PBG)
Hanjer shall deliver to MCS,a bank guarantee from a scheduled bank (“Performance Security”) for a sum of Rs. 40,00,000/- (Rupees forty lakhs) only.
The PBG shall be kept valid throughout the term of the Agreement. The renewal of the PBG is to be done by Hanjer at least one month prior to the date of expiry of the existing PBG, failing which, MCS would be entitled to invoke the PBG.
Indicators: PBG validity and renewal
Key clause- 5.3 Implementation of WPF
The Concessionaire shall adhere to the Construction Requirements and O&M Requirements and shall adhere to the standards and guidelines for construction as per MSW Rules 2000.
The Concessionaire shall submit the design and specifications for each of the component as per Volume II and get them approved by the Project Engineer. The designs and construction shall conform to relevant Bureau of Indian Standards Specification and good engineering practice.
Indicators: Approved design drawings, Equipment data specifications, Spares list, Electrical drawings, Oil and lubricant data and stocks, Equipment Maintenance manual, Approved Standard Operating Plans
Key clause 5.4 Insurance
The Concessionaire shall purchase and maintain a valid insurance, during the Concession Period
The Concessionaire shall maintain records of such Insurance and the same shall be submitted to MCS officials
Indicator: Valid insurance, Insurance declared value, coverage and risks, validity
Key clause 5.5 Environmental Compliance
The Concessionaire shall conform with the laws pertaining to environment, health, safety and labour aspects including rules such as MSW Rules, policies and guidelines.
The Concessionaire shall be liable to meet any expenses / compensation to be paid due to pollution / environmental damage or remediation caused by the WPF attributable to the failure of the Concessionaire in meeting its obligations.
Indicators: Regular Social and HSE audits, safety and first aid trainings, List and Use of PPEs, ESI –PF payments
Key clause 5.9 General Obligations:
Hanjer shall afford access to the MSWPP to the authorized representatives of MCS and member of the Regulatory Panel and other person authorized by the concerning authority (MCS), for the purpose of ascertaining compliance with the terms, covenants and conditions off this Agreement.
Hanjer shall maintain and keep in force a Public Liability Insurance for a minimum of Rs.5.0 crore as per The Public Liability Insurance Act, 1991, for the entire period of concession agreement and post closure period.
Indicators: Valid Public Liability Insurance of Rs5.0 Crores and renewal, List of Authorisedpersons and signing authority to be informed to Hanjer personnel and displayed at the gate
Key Clause 5.12 Maintenance of Records
Hanjer shall maintain records of the quantum (measured in Metric Tonnes) of waste supplied to the facility, waste processed, rejects disposed to the Landfill Facility,
Project engineer shall countercheck Hanjer provide monthly, quarterly and annual reports of the
same to the Project Engineer and the MCS along with any other details sought by MCS for documentation.
Indicator: Daily record of Vehicle no, Driver, Net weight of incoming/ outgoing waste, timing of entry/ exit. Separate registers for Raw waste, outgoing products and Outgoing rejects with triplicate gatepass, signed off by IE/ MCS representative
Key clause 6.1 Specific Obligations
MCS shall pay the Fee to the Concessionaire, on a monthly basis within 30 days
MCS shall not transport non acceptable waste MCS shall declare and maintain a No-
development zone around the site MCS shall give timely notice of the happening or
likely happening of an Event of Default or breach or default on the part of the Hanjer
Indicators: Declaration and enforcement of a NO Development Zone BY MCS, Ensuring SEHB does not transport to WPF- Biomedical/ Hazardous/ Construction and demolition waste, Timely written notice on events of defaults / force majeure
Key Clause-7.2.1 Payments during Term of Concession
Pay to Hanjer , an amount equal to 98% of the total amounts payable for year 1 to 18
Pay an amount equal to 95% of the total amounts during the last two years of the Term of Concession.
Transfer the deducted amounts into a separate bank account named “Municipal Solid Waste Processing Plant Account” for meeting the Post Concession Performance of processing plant related expenses
Deduct penalties if any MCS shall pay 8% per annum interest for payments made after 30
days from date of certification of bill.
Indicator: Determine and display Formal commissioning date, End date of concession, Opening of MSWP bank account for the remitting the post concession expense deduction and deduction of relevant 2% for 18 years and 5% for last two years
SCHEDULE- 3.3Sl No Year Cost Rs./ MT on
input MSWRemarks
1 1 1502 2 1623 3 1754 4 1895 5 2046 6 2207 7 2388 8 2579 9 278
10 10 30011 11 32412 12 35013 13 37814 14 40815 15 44116 16 47617 17 51418 18 55519 19 60020 20 64821 21 Nil Post concession
This is reference to RFP No. MCS/COM/JNNURM/10-196 dated 25-03-2010 Volume 1 Para 8.1.2(d) financial offer i.e. “There is a possibility of extending financial assistance to the project in the form of capital grant. In the event of the project securing a capital grant, an amount equal to 0.989 % of the grant amount shall be recovered from the tipping fee payable every month.. Viz: If Grant amount is G, then the monthly billing shall be paid after effecting a deduction of = Rs. (G x 0.989%)
Schedule 3.8 Standard Operating Procedure for Maintenance of Compost Plant.
Indicators: Approved SOP, Recommended spare list and minimum inventory, regular audit of these stocks
Sl No. Function Service Level Default Penalty Periodicity ofinspection
1. Receipt of MSW The operator shallaccept the MSW at thegate of the facilityduring the workinghours of the plant.
Event of default occurswhen the Operatorrefuses to accept MSWas per the OperatingPlan for a continuousperiod of 48 hours in ablock of 30 days.
Rs.5,000/- per default.The penalty would bedoubled for eachsubsequent default if itrecurs within 30 days. Inaddition, demurragecharges for trucks shouldbe paid by the Operator.
Daily bymunicipalemployee at plantentrance
1. Mechanical availability ofthe processing plant
Bidder to indicate annualavailability in hoursoperation/year:
The operator shallensure that the plantavailability at thefacility on all workingdays in accordance withthe MSW Rules.
Equipment breaksdown for a continuousperiod of more than 7days in a block of 30days in respect ofCompost Plant,Leachate Treatmentfacility as notified bythe authorizedpersonnel of theCorporation (Excludingthe scheduledpreventive maintenanceclosure of the plant).
Rs.200000 per defaultand doubled for eachsubsequent default
Monthly by projectengineer
1. Upkeep and maintenanceof records.
The Operator shallmaintain records ofreceipt of waste andsuch other details asprescribed by theCorporation in the RFP.
Failure to furnishupdated daily records tothe authorizedpersonnel of thecorporation within 48hours of notice to theOperator.
Rs.1,000 per incident anddouble subsequently if itrecurs within 30 days
1. Leachatemanagement
The Operator shallmaintain theleachate treatmentplant and dischargeat standards as
Failure to complywith the stipulations
Rs 100000/- perincident and doublesubsequently if itrecurs within 30 days,in addition to any
As per Consentconditions
Key Clause Schedule 3.10 Service levels
Sl No. Function Service Level Default Penalty Periodicity of inspection
1. Compost Quality The Operator shallproduce compost as perthe quality specifiedunder the Schedule IVof MSW Rules 2000
Failure to comply withthe stipulations
Rs 100000/- per incidentand double subsequentlyif it recurs within 30 days,in addition to any otherpenalties specified by theHPSPCB
As per Consentconditions
1. Safety in Operations The Operator shallcomply with therelevant regulationsregarding OSHA
Failure to comply withthe stipulations
Rs1000000/- perincident plus any othercharges related to themitigation of theproblems caused
7. Percentage of rejects fromWPF.Bidder to indicate percentageof rejects according to histechnology:
The rejects shall not bemore than 20% or asper Consent conditionswhichever is lower
Failure to comply withthe stipulations
Rs 50 / MT plus the costpaid to the SanitaryLandfill operator fordisposing the same
Computed as permaterial balance
8 Percentage of Organics withinthe rejects.Bidder to indicate percentageof organics within rejectsaccording to his technology:
The percentage of theOrganics within therejects shall not exceed10% or as per consentconditions whichever islower
Failure to comply withthe stipulations
Rs 50/MT Once every 60days
9 Odor Nuisance The Operator shalloperate andmaintain the WPFin a Odor freeenvironment asspecified under theSchedule IV of MSWRules 2000 or theConsent conditions
Failure to complywith the stipulations
Rs.5,000/- perdefault. The penaltywould be doubled foreach subsequentdefault if it recurswithin 30 days.
Once in 60 days
Key Contractual Issues
• Waste Processing facility
Valid Consent to establish/ operate Valid Performance guarantees, Insurances, Public
liability Insurance of ₹5.0 crores and their timely renewal
Issues regarding environmental and social compliance risks permits
Quality and quantity of rejects to landfill and as percentage of incoming waste
Disputes between contractual and actual performance
Key Contractual Issues
•Waste Processing facilityValid Consent to establish/ operateValid Performance guarantees, Insurances, Public liability Insurance of ₹5.0 crores and their timely renewalIssues regarding environmental and social compliance risks permitsQuality and quantity of rejects to landfill and as percentage of incoming wasteDisputes between contractual and actual performance
Schedule 3.10 Service levels and penalties
• Implementation of recording system which can accurately measure each of the 9 service level indicators
• This should be signed off by the MCS representative as well as the Hanjer Plant representative.
• Preferably in triplicate and two copies to be maintained at MCS and one with Hanjer at the plant
• Monthly Consolidated copy of compliance to the service levels should be annexed with bills for ease in processing
Thank you for your attention
SWM_contract_shimla-Reportparticipantssheet_28th_March2012[1]Contract ManagementSlide Number 1Salient featuresDetailed ScopeKey Clauses - 3.4 Applicable permits �Key Clause 4.1 Procedure for Appointment�����Key clause 5.1 Performance Bank Guarantee (PBG) ��Key clause- 5.3 Implementation of WPF�Key clause 5.4 Insurance �Key clause 5.5 Environmental Compliance �Key clause 5.9 General Obligations: �Key Clause 5.12 Maintenance of Records�Key clause 6.1 Specific Obligations� Key Clause-7.2.1 Payments during Term of Concession�SCHEDULE- 3.3Slide Number 15Slide Number 16Slide Number 17Slide Number 18Key Contractual IssuesSchedule 3.10 �Service levels and penaltiesSlide Number 21