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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
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2 Objectives
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3 Target group
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4 Expected outcome
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5 Feedback/ Outcome/ way forward
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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
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Roundtable Discussion in Shimla on Contract Management for
Municipal Solid
Waste Management
Pravinjith KP
Paradigm Environmental Strategies Pvt. Ltd
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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%)
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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
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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
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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
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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
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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
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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
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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
