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REPUBLIC OF KENYA
THE COUNTY GOVERNMENT OF NAKURU
TERMS OF REFERENCE FOR THE FEASIBILITY STUDY
FOR THE PROPOSED INTEGRATED SOLID WASTE MANAGEMENT PPP
PROJECT IN NAKURU COUNTY
1. INTRODUCTION
Vision 2030, Kenya’s national long-term development strategy covering the period 2008 to 2030,
places great emphasis on rebuilding and creating a productive infrastructure in the country’s journey
towards poverty reduction as well as social, political and economic transformation. However, in a
time of constrained public budgets with competing development pressures especially in the social
sectors (particularly health and education), high sovereign debt, and rising public expenditure
demands from the current and new devolved structures, the Government of Kenya (GOK) is facing
great challenges. In particular, Kenya’s infrastructure funding gap is estimated at approx. $2.1Bn p.a.
Responding to this challenge, the GOK, through the National Treasury, has made infrastructure
development and public service provision through Public Private Partnerships (PPP) a priority
mechanism that can help it address this major infrastructure funding gap and achieve the benefits of
successful PPP investments including: substantial private investment; transfer of significant risk to
the private sector; improving access to infrastructure; creating higher quality assets with better
operation and maintenance; and helping achieve better value for money.
With a growing number of project proposals approved by the PPP Committee, currently standing at
seventy-one (71) across various sectors and county governments, the PPP programme in Kenya is
gathering pace and can be considered to be taking shape. As of today there is a substantial pipeline
of projects just entering the feasibility stage, and in accordance with section 36(2) of the PPP Act,
the PPP Unit encourages the appointment of Transaction Advisors (TA) with the qualifications and
experience necessary to assist contracting authorities with the preparation of Feasibility Studies and
the procurement of PPP transactions.
In this regard, the County Government of Nakuru seeks to engage requisite expertise to assist in the
procurement of one or multiple private sector partners for designing, constructing, operating and
maintaining the Integrated Municipal Solid Waste management project (the “Project”) in the County
through a PPP arrangement.
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2. BACKGROUND OF PPP IN KENYA
Established initially under the Public Procurement and Disposal (Public Private Partnership)
Regulations, 2009, the Kenyan government has in the recent past been committed to improving and
strengthening the PPP framework for private sector participation in the country. Several
accomplishments are notable:
a) the adoption of a PPP Policy in 2011 to articulate the government's commitment to PPPs
and to provide a basis for the enactment of a PPP Law;
b) the enactment of the PPP Act on 8th February 2013;
c) the gazettement of the National PPP Regulations on 19th December 2014;
d) the development of draft PPP Regulations for the County Governments; and
e) the development of a PPP Manual is at an advanced stage
To support the delivery of the country’s PPP agenda, a number of institutions have been created
under the PPP Act of 2013. They include:
i. PPP Committee;
ii. PPP Petition Committee;
iii. PPP Unit; and
iv. PPP Nodes within the Ministries, Government Agencies and County Governments.
2.1. PPP Committee
The PPP Committee, assisted by its Secretariat (PPPU) has the responsibility to:
Develop and implement PPP policy initiatives;
Champion the PPP Agenda;
Ensure compliance with the PPP Act 2013;
Approve/recommend PPP projects to the Cabinet;
Ensure efficient execution of the PPP Agreements;
Ensure PPPs are consistent with national priorities;
Authorize allocations of the Project Facilitation Fund; and
Issue PPP standards, guidelines & procedures, & bid documents.
2.2. PPP Petition Committee
The PPP Petition Committee, established under section 67 of the PPP Act 2013, is set up as a
tribunal to adjudicate on all petitions and complaints submitted by a private party during the process
of tendering and entering into a PPP project agreement.
To effectively discharge its mandate to function as a dispute settlement body, the day to day
administrative aspects of the Petition are administrated through a Secretariat.
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2.3. PPP Unit
The PPP Unit, as the resource center for best practice and guardian of the integrity of the PPP
process, has a large role to play in identifying problems, and making recommendations to the PPP
Committee regarding potential solutions.
In addition, it is the specific responsibility of the PPP Unit to assist each Contracting Authority to
identify, select, appraise, approve, negotiate and monitor PPP projects throughout their life cycle.
Moreover, the PPP Unit is also tasked to improve capacity and skills in the public sector and to
manage PPP projects more effectively.
2.4. Contracting Authorities
The PPP Act of 2013 recognizes Contracting Authorities (CA) as Ministries/Government
Departments, County Governments and Statutory Corporations. Their main responsibilities with
respect to PPP are to identify, develop, implement and monitor projects. To discharge their
responsibilities, procuring entities are required to conduct feasibility studies, prepare bidding
documents and seek necessary approvals.
Each CA undertaking a PPP project is required to establish a PPP Node, staffed with officers with
the ability to carry out day-to-day management of a PPP project (section 16 and 17 of the PPP Act,
2013). Given that Contracting Authorities do not have in-house expertise on PPP, they may have to
appoint Transaction Advisors (TA) to assist them in the development of projects.
2.5. Scope and Application of the PPP Program
The scope of the Government’s PPP program is the creation of new infrastructure, and the
expansion & refurbishment of existing assets such as:
roads and bridges;
ports;
airports;
railways;
power generation plants and transmission/distribution networks;
oil and gas i.e. petroleum infrastructure, such as storage depots and distribution pipelines etc.;
inland container depots and logistics hubs;
municipal services;
mining;
water supply, treatment and distribution systems;
solid waste management;
social infrastructure for health care, prisons, education;
telecoms/ICT
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3. DESCRIPTION AND SCOPE OF THE PROJECT
3.1. Background
Situated at an altitude of 1,859m above the sea level, Nakuru County is approximately 160Kms
North West of Nairobi and is within the greater region of the Rift Valley. Covering an area of
7,496.5 Km², the County has a population of 1,603,325 and 409,836 households (2009 census) with
a population density is 213.9 per Km2.
Constituting of 11 constituencies (Naivasha, Nakuru Town West, Nakuru Town East, Kuresoi
South, Kuresoi North, Molo, Rongai, Subukia, Njoro, Gilgil, Bahati), Nakuru is the fourth largest
County in Kenya after Nairobi, Kakamega and Kiambu in terms of population.
Figure 1: Map of Nakuru County
In accordance with the 4th Schedule of the 2010 Kenya Constitution (functions of the national and
the county governments), Solid Waste Management (SWM) is a legal mandate placed to the County
Governments. In this regard, the County Government of Nakuru has embarked on a strategic
initiative to develop an integrated solid waste management project within its jurisdiction.
The Ministry of Environment, Natural Resources, Energy and Water briefly initialized as ENREW,
of the County Government of Nakuru, implements the county legislation, national legislation within
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the county, and manages and coordinate the functions of the ministry of Environmental, Natural
Resources, Energy and Water.
The ministry has two technical departments namely: (i) Department of water and sanitation; and, (ii)
Department of Environment, Natural Resources and Energy. The Department of Environment,
Natural Resources and Energy has two technical sections namely, Environmental planning and
management section and natural resources management section. Solid Waste Management falls
under the aegis of the Environmental planning and Management Section of the Department of
Environment, Natural Resources and Energy.
3.2. The Proposed PPP Project
In its 3rd meeting of 31st March 2014, the PPP Committee, acting under section 7(d) and in
accordance with section 31(3) of the PPP Act 2013, approved the proposal to implement an
integrated1 solid waste management project under the PPP structure, including collection,
transportation, treatment and disposal of solid waste generated in the urban cities of Nakuru County
Government (see Appendix 1 for a copy of the approved project proposal).
Currently, the performance of the County in managing solid waste is below average. The absence of
effective solid waste management practices has made Nakuru lose its erstwhile accolade of the
‘cleanest town’ in East Africa. As per estimates, 800 tonnes of solid waste is generated daily in the
County (based on the HDI estimate of 0.5kgs of waste/per person) with the highest amount of
waste being generated in Nakuru and Naivasha towns. Only about 45% of this waste is officially
collected and disposed at the designated dumpsites while the rest is either recycled/left unattended.
In the more affluent communities, private companies, which are licensed by the county government,
collect domestic waste weekly and are paid by individual residents. In the less affluent areas, youth
groups are organized to collect from individual houses and brought to small transfer sites, or
intermediate collection points (TPS) from where county waste trucks collect and transport to the
dumpsite. These TPS basically consist of open dump areas usually by the roadside. The County has a
few ageing refuse waste trucks that collect and dispose of solid waste daily from the central business
district (CBD), industries, county’s own institutions and schools. Further details on: (i) the current
functional solid waste management model and operating arrangements; and (ii) waste
characterisation in the county is provided in Appendix 2 (i.e. Scoping Report), and Appendix 3 (i.e.
Waste Characterization Report of 2010 by Antea (France) and Engin-consult, Kenya) respectively.
The County has one open dumpsite that sits on approx. 29 acres of land located in the Kiamunyi
area. Waste is emptied at the dumpsite (a former quarry pit) without compaction. The site emits
landfill gases and obnoxious odours which burns during the dry season, and the smoke is injurious
to the health of the residents living in the immediate vicinity. Exposure of wastes at the site
encourages foraging by domestic animals and waste picking of recyclables by unemployed local
residents and children. In this regard, the overall focus of the County Government is to minimize
1 “Integrated” in this context does not presume a particular structure for the waste management industry in the
county, merely a desire to improve the service throughout the entire value chain
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the adverse environmental effects caused by the inefficient and inappropriate solid waste
management practices.
Figure 2: Kiamunyi Open Dumpsite
Accordingly, the County Government of Nakuru, under provisions of the PPP Act of 2013, defined
as the Contracting Authority, has expressed its desire to implement an Integrated Solid Waste
Management (ISWM) plan by enhancing the solid waste Re-use, Recycle and Reduction (3Rs)
principles in the urban areas of the County. However, due to the significant capital investment and
technical and managerial expertise required to meet the above needs, the County Government of
Nakuru has considered it necessary to partner with a strategic private party towards the
implementation of the Project with a focus on protecting public health and the environment in the
face of the growing volume of waste.
4. OBJECTIVE OF THE ASSIGNMENT
On behalf of the County Government, the PPP Unit seeks the assistance of a consortium of
International/Local consultants (i.e. technical/sector, financial, Legal and social and environment) to
gauge the potential for PPPs in SWM in Nakuru County environs.
The consultants to be engaged will prepare a feasibility study consistent with the PPP Act, 2013 to a
standard that will enable the County Government of Nakuru to establish the technical configuration,
commercial attractiveness and bankability of the Project(s). In the process, the assignment is to
recommend the best PPP model for the procurement of the Project based on an analysis of several
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alternative technical and PPP models, and advise the County on the optimum risk allocation and the
resultant contract structure, including requisite statutory approvals.
5. ROLE OF THE CONSULTANTS
As a minimum, the team will include the following experts:
1. Financial Expert(s)/Team Leader;
2. Technical Expert(s)
3. Legal Expert(s); and
4. Environmental & Social Impact Assessment Expert(s).
The overall objective of the assignment is to assist the County Government of Nakuru to develop a
bankable structure for one or more PPP projects covering the entire solid waste management value
chain from collection through transportation, treatment and disposal, based on a full-scale feasibility
process which would allow it to tender the project(s) in a subsequent bidding phase. The assignment
is to be provided by a firm or consortium of firms, collectively covering the range of financial,
technical, legal, social & environment, and other requisite expertise.
6. SCOPE OF THE ASSIGNMENT
The consultants will provide all needed support, inputs, documentation, services and content for the
Project. This section describes the minimum required tasks to be performed by the consultants,
without in any way limiting the scope of activities that they may need to fulfill the County’s
objectives, including the following key stages:
a) Project Feasibility:
This initial assessment is in describing the problem(s) that the proposed project(s) is trying
to solve, supported by a situational analysis of the current SWM practices in the County.
The expected outcome is the development of an optimal “industry” structure that caters to
various options of vertical and horizontal integration or separation, e.g.: do we separate or
bundle collection, transportation, treatment and disposal; do we aggregate or disaggregate
across urban/ centres/ regions? If so for which activities – will be different answers for
different activities; and also what form of disposal – landfill, recycling, waste to energy etc.
The objective is to conclude with a recommended industry structure whose feasibility and
the feasibility of implementing it (they) as a PPP will be assessed in the next phase.
b) PPP Feasibility:
Completion of the feasibility study to a standard to comply with the requirements of the
PPP Act, including assessing PPP options, technical due diligence, demand/market
projections, social safeguards considerations including environmental concerns, financial and
economic analysis and modeling, value for money and public sector comparator analysis,
affordability and fiscal impact assessment and overall transaction structuring.
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c) PPP Transaction Plan:
Design of a detailed PPP Transaction Plan, based on the findings of the feasibility analysis,
outlining the recommended PPP structure for an integrated SW management in Nakuru
County, the roles and responsibilities of all parties involved, the allocation of project risks to
the parties, as well as roadmap of further implementation stages until financial closure.
Throughout the assignment, the consultants will support, as appropriate, in securing the necessary
approvals for the Project. As an integral part of the scope of works, the consultants will advise on
the institutional and organizational framework and capacity building requirements to ensure
knowledge transfer to the CA team.
6.1. Feasibility Study and Project Implementation Schedule
The PPP Feasibility Study is intended to examine both the Project’s feasibility and the feasibility of
implementing the Project as a PPP. The Study is intended to answer the following key questions:
1. Needs Analysis and Project Objectives: What need is the project trying to address, what
demand is it trying to satisfy, what problems is it trying to solve, what are the project’s
objectives, etc.?
2. What is the preferred (based on financial, economic, technical, environmental etc. evaluation)
technical and commercial solution to achieving the Project’s objectives vs. other options
which will need to be considered?
3. Is the project viable – from a technical, economic, social, environmental and financial
perspective? This should include an assessment of affordability – for the end user and the
public sector, including an assessment of the fiscal impact and contingent liability, value for
money and risk transfer.
4. What is the best way to procure the project – through traditional public sector procurement,
for example a Build or Design and Build contract, or through some form of PPP?
5. If PPP, then what is the most appropriate form of PPP for the project as defined by the
proposed responsibilities of the private sector and the key risk allocation.
A template for the Feasibility Study Report is attached as Appendix 4 to these ToR.
Task 1: Project Feasibility Assessment
Task 1.1: Technical and Commercial Options Analysis
The Technical Due Diligence analyses the alternative technical configurations, projected market
demand and other parameters influencing the financial and operational viability of the PPP
transaction with a view to achieving an optimized approach to operational efficiency for the
development, operation and maintenance of an Integrated Solid Waste Management project.
In detail, the Technical Due Diligence will undertake, but shall not be limited to, the following:
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Conduct a situational analysis of the principal actors and resources available in refuse
collection and disposal within the county i.e. county government, private sector
entrepreneurs, community-based organizations (CBOs), youth groups, informal sector
influence, recycling industry, and any other player, if any, and the effect of the Project on the
current institutional setting.
Carry out a detailed assessment of the existing solid waste management system/practice (i.e.
collection, transport and disposal), including the regulatory framework and the financial
situation of the County, to identify any shortfalls, bottlenecks, and/or permits for out-
sourcing development, operations and maintenance of the service to the private sector.
Conduct a Waste Characterization Survey to gain better knowledge of the composition of the
waste currently collected in the County and entering the dumpsite and therefore to better
determine the measures to be taken upon restoration/rehabilitation of the existing dumpsite
or if applicable, the treatment facilities that are needed at a new landfill.
Review existing and emerging technologies for waste disposal (e.g. waste incineration), waste
handling, and waste conversion/recycling or reuse, and propose the most viable alternative.
Conduct a Demand Analysis, based on household and other generator/producer volume
forecasts and projections for the County’s proposed project. Emphasis is to be given to
elasticity studies (scenario analysis) that consider the sensitivity of the service demand to the
user fees/charges imposed.
Assess opportunities for restoration/rehabilitation of the existing open disposal site and
provide preliminary engineering designs for various improvements to the current solid waste
management infrastructure to minimize the environmental impact and provide a long term
disposal solution for the wastes from the Nakuru County communities.
Identify and evaluate the options for various engineering configurations to be considered
during the evaluation of alternative methods including the development of a new sanitary
landfill while identifying specific locations and any associated land acquisition requirements
and difficulties, etc.
Carry out preliminary engineering designs and costing of the recommended technical
configuration of the Project including, potential refuse collection zones, solid waste
collection (including pre-collection, recycling and transfer) and disposal (including any
composting, incineration, recycling and other means of treatment/resource recovery),
transfer stations, infrastructure improvement i.e. access roads, fencing, construction of
weighbridge and measurement of solid waste delivered, etc. and any other required, to be
laid out in Design Criteria and Performance Specifications.
Survey various users of the solid waste system regarding their service preferences and their
ability and willingness to pay for various solid waste management services (i.e., various types
of users include residential dwellings, commercial establishments, tourist establishments,
hospitals, and industries; and various solid waste management services include pre-collection,
collection, recycling, transfer, disposal, composting).
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Based on a preferred tariff/fee structure and the service characteristics offered by the
scenarios, recommend a tariff policy. Various cost recovery schemes may be proposed
together with the corresponding rate structures for user charges, tipping fees and solid waste
fees to be collected from residents, commercial and industrial establishments.
Assess various methods of invoicing and payment collection and propose potential revenue
collection systems and tariff structure to accommodate the capital, operating and
maintenance costs of the Project as a cost recovery mechanism that is likely to increase
revenues and has minimal potential for leakage. Mechanisms for the collection of fees with
other services (i.e. water & sewerage, and power distribution & generation) shall be explored.
Assess whether the solid waste system should be managed as a whole or in parts by the
incoming private sector consortium.
Provide technical inputs and data, as required, to a stakeholder and public awareness
campaign on the introduction of private sector waste collection fee systems, in liaison with
County Government, PPP Unit and specialized communications consultants assigned to
develop and implement the awareness campaign.
Identify ancillary revenues or commercial development potential of the Project, if any, e.g.
tapping carbon finance, waste recycling, sale of compost or RDF or electricity from the
treatment facility etc.
Prepare a Development, Operation and Maintenance Plan for reference and costing
purposes.
Task 1.2: Project Due Diligence
The Project Due Diligence will evaluate the feasibility of the Project, based on the preferred
Technical and Commercial configuration determined above. This due diligence will cover:
Economic and Social Cost Benefit Analysis
Financial Viability
Legal due diligence
Site due diligence
Environmental and Disaster Risk Assessment
Task 1.2.1 Economic and Social Cost Benefit Analysis (ECSBA)
The ECSBA will comprise both a qualitative and quantitative assessment of the economic and social
costs and benefits of the proposed Project, including a determination of the Economic Internal Rate
of Return (EIRR) and the Benefit-Cost Ratio (BCR) for the project.
Task 1.2.2 Financial Viability Assessment
The Financial Due Diligence is required to analyze the market potential for private sector investors
to implement the Project, compare alternative solid waste management structures and designs aimed
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at optimising the transaction structure from the financial point of view, and assess the financial risks
involved for both the public and the private parties. Based on the financial model, the Financial Due
Diligence is required for the purpose of assessing the overall feasibility of the PPP project from the
point of view of the public, as well as the private parties.
The consultants will develop a Project Financial Model which will be used to evaluate:
The Financial Viability of the Project including determination of Project and Equity IRRs
Project Financing Needs – up front and recurring as driven by Capex requirements
Project Funding Needs – assessment of annual funding requirements (“tipping fee” or grants
from the County Government of Nakuru) to cover O&M, debt service and other recurring
costs (Different scenarios for different levels of end user charges), after accounting for likely
revenue from recycling and treatment facility of the project
Value-for-Money (VfM) test through the comparative assessment of a risk-adjusted public
sector comparator (PSC) model and the PPP reference model for the chosen or considered
PPP structures
The Affordability of the Project for consumers and the public sector (i.e. County
Government and/or the National Government)
The impact of various project inputs on the earnings and net cash flow potential i.e. ability to
conduct sensitivity analysis for the purpose of quantifying the financial and economic
impacts of different structuring options.
Also, the Financial Due Diligence is expected to encompass and inform on the following aspects of
the PPP transaction:
Technical definition of the Project and the distribution of Scope of Work among the parties
involved;
Discussion on costs (direct and indirect) and assumptions made on cost estimates;
Discussion on revenue and assumptions made on revenue estimates;
Discussion on all model assumptions made in the construction of the model, including
inflation rate, discount rate, depreciation and budgets;
Discussion on proposed PPP type;
Discussion on the approaches applied for enhancing the project’s attractiveness to both
investors and their lenders/financing institutions
Proposed PPP project structure and sources of funding; and
Payment mechanism.
Furthermore, the consultants will conduct a project risk analysis to determine, assess, allocate and
manage risks (such as, but not limited to project, commercial/market risk, environmental, financial,
political, economic, force majeure and legal risks) during all project stages. The risk analysis should
cover valuation, allocation and mitigation measures.
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Based on the risk analysis, and in accordance with GOK’s PPP Fiscal Commitment and Contingent
Liability (FCCL) Management Framework, the consultants are to analyse the potential fiscal risk and
contingent liabilities of the Project. The consultant will quantify the liabilities associated with the
recommended project configuration, and propose how the same shall be managed and the funding
requirements.
Task 1.2.3 Legal Due Diligence
The Legal Due Diligence will examine the complete applicable legal, regulatory and institutional
framework within which the Project will be implemented in order to identify any impediments to
Project implementation and advise how any such impediments should be addressed.
The legal due diligence will examine also the implications of alternative forms of procurement and
alternative PPP structures which will be considered in the procurement phase and will identify a
legally sound approach for the establishment of the preferred PPP approach.
A general outline of parameters governing suitable PPP models shall be presented, based on
international best practice and specific local circumstances. This will include and commence with a
high level analysis of principles paramount to those PPP options from both the viewpoint of a
potential investor as well as the public party, leading onto the local legal implications of the
identified and preferred PPP models. Parallel to that, the existing regulatory and institutional
framework will be assessed as to its actual effectiveness and as to its ability to accommodate the
envisaged future PPP option, identifying any deficiencies and cornerstones of the current/future
regulatory set up.
The consultant will, inter alia, carry out the following tasks:
Assess current national and county laws, acts, regulations, administrative issuances, policies
and institutional arrangements to ascertain first any constraints to Project implementation,
and second the validity and viability of the alternative PPP structures for the project,
including The County Government of Nakuru’s capacity to manage and monitor the
implementation of the Project once operational, while identifying the gaps in the legal and
regulatory framework as it applies to the management of the project, and recommend
required changes to improve the governance, institutional or regulatory regime.
Formulate appropriate institutional arrangements for the Project taking into consideration
the roles and responsibilities of The County Government of Nakuru, other Govt agencies &
entities, private sector, and other stakeholders, including consumers and public at large.
Provide advice on appropriate institutional and organizational framework and capacity
building needs for project procurement and contract management – including advice on:
o public sector side procurement management and procurement steering arrangements
o resourcing, training and capacity building needs for the public sector side
o operational arrangements between public sector side and advisers during
procurement
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o contract management arrangements
o resourcing, training and capacity building needs for contract management function
o outline terms of reference for Independent Engineer/ Consultant
Determine the legal options and mechanisms for implementing and enforcing the proposed
tariff policy. As needed, recommend changes in existing by-laws, requiring residents, visitors,
and establishments to comply with the cost recovery mechanisms and private sector agents
developed by government for improved solid waste management. This shall include the
legal requirements that residents utilize the services of only licensed private agents or risk
sanction.
Develop and provide detail to the legal architecture and design of the transaction, identifying,
inter alia, the (i) type of PPP contract to be used; (ii) investment plan, how, where and when
investments will be made; and (iii) type of public sector support required, if any, including
terms and conditions.
Assist in resolving legal issues associated with the management of the social, economic and
environmental impacts of the project in a manner consistent with the Constitution of Kenya
(2010) and other relevant national and county legislation, taking into consideration
international best practices.
Task 1.2.4 Site Due Diligence
The consultants will carry out a due diligence on the Project site, including the areas of primary solid
waste collection, current and potential transfer stations, the land-fill site and the potential site for the
treatment plant (if not within the area of the land-fil site), with a view to identifying any
impediments to Project implementation and advising on how such impediments should be
addressed, covering, inter alia:
Land requirements and availability
Title, rights of way, easements, encumbrances
Access
Resettlement
Land acquisition process and costing
Utilities
Task 1.2.5 Environmental and Disaster Risk Assessment
Environmental and Social Safeguards Sustainability
The consultant’s team will encompass Environmental and Social Impact Experts which will identify,
assess and quantify the specific environmental and social risks and impacts associated with
integrated SWM project in Nakuru. It will ensure all environmental and social aspects of the Project
comply with Kenyan laws and regulations as well as international development partner’s directives.
Specific tasks entail, but are not limited to:
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Prepare/review and/or update, as necessary, the Environmental and Social Risk Assessment
and Analysis. The Experts(s) will ensure that all aspects related to social safeguards have
been considered, and necessary mitigation measures have been taken, adequate for purposes
of securing approvals in accordance with the existing legislation.
Examine underlying geological features, particularly the permeability of soil, aesthetic
appearance including topography and landscape
Conduct a climate and disaster risk vulnerability assessment, identifying potential threats and
risks due to climate and geo-hazard situations/conditions in the covered/service areas.
While recommending the option of treatment process, examine the possibility of penetration
to check the quality of effluent water to the ground water. This effluent water may cause
contamination to the surface water or ground water.
As applicable, perform site selection and assessment, from a geological, ecological and
population point of view, addressing all environmental issues associated with its
construction.
Take into account any Resettlement actions and prepare a detailed Resettlement and
Rehabilitation Action Plans for the proposed new site, if any.
Identify key risk areas and threats to the existing or new facility; identify technical,
administrative, institutional, infrastructure, and social/environmental mitigating measures
and recommendations for integration into the over-all project design, financial and
implementation proposal.
Conduct gender analysis and identification of gender issues and gender gaps that the project
must address using available legislated guidelines.
Educate and mobilize residents on the key aspects of an integrated solid waste management
including source separation, recycling and reuse.
o Provide capacity building to County staff i.e. training workshops and seminars on
solid waste management, and collaboration workshops with other stakeholders
including informal waste pickers, NGO’s, institutions and private waste service
providers.
Promote the benefits of handling waste effectively through door-to-door awareness raising
and other educational efforts aimed at designing a waste management system that is
inclusive, socially desirable, economically viable, and environmentally sound.
Develop a Preliminary Environmental and Social Impact Assessment (PESIA) report, to be
discussed in a stakeholder consultation process, and for purposes of assessing the social and
environmental impact of the project.
Task 2: Procurement Options and PPP Options and Structure Analysis
Having established the Project Feasibility, the consultant will determine the optimum way of
procuring the Project – through traditional procurement or through a PPP, and if a PPP, whether it
would be one PPP contract for all elements of the project or multiple PPP contracts, which form of
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PPP would be the most appropriate for each of these PPPs (if more than one), and which process of
procurement would be best for each PPP.
In their analysis the consultant must consider all infrastructures which need to be developed for the
Project – including assets for primary collection, secondary collection, bulk transportation, SW
treatment (including segregation unit) and sanitary land-fill site.
Task 2.1: Options Development, Evaluation and Selection
The consultant will:
Describe a range of credible alternative procurement and PPP options including justification
for their selection. Options must include traditional public sector procurement. For each
option, the consultant will set out:
o The key roles and responsibilities of the private sector and of the public sector
o The key risk allocation under each option
Develop, describe and justify a set of evaluation criteria to be used in evaluating alternative
procurement and PPP options to include, inter alia:
o Value for Money assessment. The Value for Money assessment is expected to
examine both the choice between traditional public sector and PPP procurement, as
well as alternative risk allocations between the alternative PPP options. The report
should present clearly how the Public Sector Comparator Model, the Risk Adjusted
Public Sector Comparator Model, the PPP Reference Model and the Risk Adjusted
PPP Reference Model have been developed and populated with data
o Affordability for users and the public sector
o Assessment of Fiscal Impact including any contingent liabilities for the public sector
o Private sector feedback on attractiveness, bankability and risk allocation, based on a
Preliminary Market Sounding amongst potential operators, developers, investors and
financiers
Present the results of the Evaluation through a report and slides presentation, defining the
different PPP options studied, presenting for each the structure of relationships, contractual
undertakings, risk profile, and major pre-requisites. The consultant will make a
recommendation which PPP option in his professional judgment is the most viable and
bankable.
Provide a detailed description of the preferred Procurement Option and PPP Structure,
including:
o Key Risk Allocation
o Outline Payment Mechanism/ Tariff arrangements
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o Indicative Financing Structure and sources – private sector bank debt, multilateral
debt, public sector debt, project bonds, grants (indicate source), developer equity,
other (specify)
o Key Heads of Terms for the proposed PPP Structure
In support of the Options Analysis, the consultant will:
Develop a detailed and comprehensive Financial Model
Carry out Market Sounding of the Project and of alternative risk allocations/ PPP structures
Task 2.2: Financial Modeling
The Feasibility Study is expected to be supported by detailed and comprehensive Financial
Modeling. In particular financial modeling is expected to:
Support the Economic Viability Analysis of the Project and Alternative Technical Solutions
(Task 1.2.1)
Support the Financial Viability Analysis, the determination of revenue requirements to meet
Project Funding needs, the determination of necessary tariff levels, the evaluation of
affordability for both user pays and public sector pays models including fiscal and public
sector borrowing impact (Task 1.2.2)
Support in determining the Project’s Financing requirements and the evaluation of alternative
financing structures and sources (Task 2.1)
Support in the evaluation of alternative procurement options and PPP options, including
Value for Money analysis (Task 2.1)
And in the implementation phase of the Project:
Support in the detailed design of the Payment Mechanism/ Tariff arrangements
Act as a shadow Bid Model and assist in evaluating bids and their robustness
The Financial Model will be used to: (i) analyse the market potential for private sector investors and
lenders, assess the financial risks involved for both the public and the private parties, (ii) assess the
impact of various project inputs on the earnings and net cash flow potential and compute the
refinancing mechanisms of capital expenditure costs; (iii) Compare alternative Project procurement
and PPP options, aimed at optimising the transaction structure from the financial point of view by
comparing the performances of various PPP models (with different risk allocation features). Further,
the Financial Model should be designed to provide for analysis of project structuring options
including quantifying the financial impacts of different structuring options
In their proposals, Bidders should describe in detail the structure and functionality of the Financial
Models they would develop and also the methodologies and tools they would employ in carrying out
the necessary financial analysis.
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Task 2.3: Market Sounding
To enable the preparation of a responsive Feasibility Study Report, the TA shall undertake a Market
Sounding exercise that shall include the following tasks:
Organize a meeting with The County Government of Nakuru officials to provide an
overview of the approach to market sounding;
Prepare a Market Sounding document that will include a Project Profile (which will cover the
objectives of The County Government of Nakuru, an overview of the Project, the process
and timetable for procurement, outline Risk Allocation), as well as a summary of the key
issues to be discussed with and questions to be asked of the market, i.e. equity investors,
debt financiers, contractors and operators, the process of how the market sounding will be
conducted, the proposed list of parties to be approached
Provide the Project Profile to the identified private parties and holding one-on-one
discussions with them, either telephonically, or if practical and cost effective, face to face
Organize and participate in workshops with The County Government of Nakuru and other
stakeholders to review findings of the market sounding and determine key areas that will
need consideration in preparing the Feasibility Report;
Prepare a Market Sounding Report (which will form an appendix to the Feasibility Study)
that will summarize the findings from the exercise and will consist of, but is not limited to,
the following information:
o Market sounding objective;
o Key issues that needed to be considered;
o List of companies consulted;
o List of questions with answers from the one-on-one sessions;
o Summary findings and matters considered in the Feasibility Report.
In summary, the consultants will organize consultation discussions with potential market
participants including, but not limited to, potential developers, operators, equity partners, investors,
lenders and guarantors to fulfill the market sounding requirements. The conclusions drawn from
these consultation meetings shall be taken into account in the preparation of the feasibility report
and in designing the PPP transaction structure.
Task 2.4: Summary Recommendations, Project Implementation Plan and Feasibility Study
Report
The consultants will prepare a comprehensive Feasibility Study Report in accordance with the
requirements of the PPP Act, and the template provided at Appendix 4. This Report will present the
analysis carried out, the conclusions reached and the recommendations made concerning the Project
Feasibility and the preferred method of procurement including recommended PPP structure, as well
as legal, regulatory, institutional, financial, economic, funding, tariff structure, environmental, social
and risk allocation recommendations necessary for the successful implementation of the Project.
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The Report will include a complete description of the Project as structured, based on the
recommendations contained in the Report, covering:
A summary of how the proposed PPP project addresses the County Government of
Nakuru’s strategic objectives and its consistency with the sector’s master plans
A summary of the output specifications for the Project
Other potential commercial activities that the PPP Company may undertake to augment
revenues and lessen the fees charged to the off-taker
A list of significant Government assets which will be used for the Project (such as land and
existing structures, access roads, etc.)
A summary of the fiscal implications and potential contingent liabilities for the public sector;
A detailed description of the type of PPP project proposed and its envisaged payment
mechanism/ tariff regime
A detailed description of the proposed Key Risk Allocation
Draft Heads of Terms which will form the basis for the PPP agreements to be developed in
the subsequent Phase i.e. Procurement
The Report will also include a detailed Project Implementation Plan which will set out a clear
timetable for the Project Implementation and will cover all the tasks required of all parties to
procure the Project, identifying: (i) Tasks; (ii) Timing; (iii) Responsibilities for each task; and, (iv)
Key approval/ decision points and milestones.
Task 3: Support the County Government of Nakuru on Securing PPP Committee Approval
and All Other Government Approvals
The Feasibility Study Report will be submitted in the first instance to the County Government of
Nakuru and the PPP Unit, and subsequently to the PPP Committee for approval.
The consultants shall complete all required documents to be submitted to the PPP Unit and PPP
Committee, and assist the County Government of Nakuru address all PPP Unit concerns until the
approval is accorded by the PPP Committee and other concerned parties.
These documents shall include the following:
a) Six (6) electronic and hard copies, in MS Word format, of the Feasibility Report;
b) Completed checklist for feasibility studies of PPP projects;
c) Two (2) electronic copies, in MS Excel format of the financial analysis/financial model in
traceable formula format;
d) The Preliminary Environmental and Social Impact Assessment (PESIA) report in electronic
& hard copies (Ms word file);
e) Land acquisition plan and social strategy frameworks (i.e. resettlement and gender action
plan);
f) Location map (with electronic copy); and
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g) Other documents that may be required by the PPP Unit.
The consultants will also provide assistance in securing approval of the estimated Fiscal
Commitments and Contingent Liability (FCCL) funding by the Public Debt Management Office
(PDMO) including preparation of documentation required under the FCCL Framework for PPP
projects in Kenya. And if necessary, they shall assist the County Government of Nakuru in
obtaining PPP Committee approval for public sector support to the Project (financial, guarantee,
legal etc.) as recommended by the Feasibility Study.
7. CONSULTANT SKILLS AND EXPERIENCE
7.1. Necessary consultant skills and experience
The consultants will comprise a single organization or a consortium of firms, led by a single lead
advisor. The members of the advisory team will have both the skills and experience necessary to
undertake the range of tasks set out in these terms of reference. Each individual on the team must
be personally available to do the work as and when required.
The lead advisor will be held accountable, in terms of the consultancy contract, for ensuring project
deliverables and for the professional conduct and integrity of the entire team. Team members may
not be changed or removed without the prior written approval of The County Government of
Nakuru and the PPP Unit, and replacement with someone at least as qualified and capable.
The skills and experience required as a minimum of the consultancy team are as follows:
Financial advisory, analysis and modeling experience, with Integrated SWM PPP and project
finance experience through to financial close
PPP procurement and structuring
Kenyan commercial and contract law
Relevant international and regional experience in the legal frameworks for PPP and in the
drafting and negotiating of PPP agreements
Technical expertise in Integrated SWM project, including project configuration, planning,
design, engineering, capital cost estimation, construction technologies, estimation of O&M
costs and defining service standards/specifications of all aspects of Integrated SWM
Technical expertise in alternative solid waste treatment technologies and their evaluation,
operations & maintenance of treatment facility and construction and operation of scientific
land-fill site
Social and environment expertise and experience in Integrated SWM project
7.2. Key Personnel and Time Input
Bidders are free to propose their own team structure and Key Personnel, however they are advised
that The County Government of Nakuru expects, as a minimum, to see the following Specified Key
Personnel in 7.3 below.
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Bidders may propose the same individual and CV for more than one position if that individual is
qualified for more than one position and that the individual will make the requisite time
commitments for both the positions as required, but they must make it explicitly clear that this is
what they are doing in order to ensure that the individual is evaluated against each position. Bidders
may also propose two complementary (not alternative) CVs for one position if they do not have
personnel with the full range of expertise required for such position. Again Bidders must indicate
clearly that this is what they are doing.
The Bidder’s proposed Specified Key Personnel will be evaluated against the Expertise Expectations
set out in the table below. Bidder’s proposed Key Personnel outside of the below Specified Key
Personnel will be evaluated on their individual merits, as will Bidder’s proposed non-key personnel.
It is expected that a substantial majority of the proposed Specified Key Personnel will be full time
employees of the Bidder, and credit will be given in the evaluation for this.
Bidders are also required to state the proposed person month input of each member of their team
(Key and non-Key personnel) in the form set out in Appendix 3. The amount of input stated for
Specified Key Personnel both within and outside of Kenya will be evaluated as a part of the
Technical Proposal evaluation.
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7.3. Specified Key Personnel Expertise Expectations
Position Expertise Expectations
Financial
Expert(s)/
Team Leader
A university degree in Business; Finance; Economics; Management; or any related filed, with a relevant post graduate
qualification.
At least 15 years of professional experience in PPPs and project finance, with a proven track record in project structuring and
risk analysis, allocation and management, cost-benefit analysis, financial evaluation and financial modelling of PPP projects,
particularly Integrated Solid Waste projects, including value for money, Public Sector Comparator analysis, affordability and
fiscal impact assessment.
Demonstrated experience in dealing with project finance structures with at least three (3) financially closed PPP projects.
Relevant qualifications and experience in developing countries is an added advantage.
Good English communication and writing skills, especially in report writing, are essential.
Technical
Expert(s)
A university degree in Engineering, preferably with a relevant post-graduate qualification in the Waste Management sector.
A minimum of 10 years’ demonstrated experience in providing PPP transaction advisory services in the assessment of
Integrated Solid Waste management projects on a PPP basis, including: designing and evaluating primary collection,
secondary collection, transfer stations and bulk transportation of SW in medium to large urban areas; construction and
operations and maintenance of treatment facilities and scientific landfill sites; and designing and evaluating alternative solid
waste treatment technologies and plants. Relevant experience in extensive experience in project structuring and risk analysis,
allocation and management; project agreements; bid process management including preparation of bidding process
documentation and post-bid process monitoring.
Successful preparation of PPP projects with at least three financially closed projects. Regional working experience (SSA) will
be an advantage.
Good English communication and writing skills, especially in report writing, are essential.
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PPP Legal
Expert
A university degree in Law.
A minimum of 10years’ demonstrated experience in drafting Project agreements comprising PPP Concession Agreement,
Waste off-take agreement, share-holders agreement and other related documents/agreements; PPP procurement, managing
bidding process, and resolving legal issues, policy and institutional assessment; and, successful preparation of PPP projects
with at least two financially closed PPP projects.
Demonstrable knowledge and experience of the legal, regulatory and institutional framework for PPPs in Kenya and of the
solid waste sector, relevant experience of public procurement/ transaction management will be an additional merit.
Experience in Integrated Solid Waste projects will be an additional merit.
Good English communication and writing skills, especially in report writing, are essential.
Social
Safeguards
Specialist
A university degree in social sciences, development studies or other related field.
A minimum of 8 years’ demonstrated experience in the assessment of social impacts, gender analysis and mitigation measures
for 3 investment projects (public and private funded) in Kenya. Experience of working with informal sector and designing at
least 1 inclusive project in Kenya or East Africa.
Thorough knowledge of Kenyan labour laws and other related laws/provisions. Experience in the application of
development partnerships in Environmental and Social Management Framework on Safeguards Policy Statement
(involuntary resettlement safeguards, indigenous peoples safeguards, Physical Cultural Resources, etc.) in implementing PPP
projects will be an additional merit.
Good English communication and writing skills, especially in report writing, are essential.
Environmental Specialist
A university degree in social or environmental sciences, development studies or other related field.
5 years’ demonstrated experience in environmental impact assessment and mitigation measures and experience of
environmental impact and mitigation measures for at least 3 land-fill sites and solid waste treatment plants (public or private
funded) in accordance with the specific environmental and safeguard requirements.
Good English communication and writing skills, especially in report writing, are essential
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8. DURATION OF THE ASSIGNMENT
Considering that many activities will be undertaken concurrently, it is estimated that the above
services would require a period of approx. 14 weeks from the date of commencement of the services
until end of the assignment.
Bidders are expected to provide a comprehensive and detailed Project Implementation Plan,
preferably using Microsoft Project, or equivalent software, indicating all the key tasks, deliverables,
milestones, responsibilities, timetables and critical path for successful project implementation,
capturing as a bare minimum the following tasks. This detailed plan will be discussed and agreed
with the County Government of Nakuru and PPP Unit before market engagement.
9. DELIVERABLES OF THE ASSIGNMENT
The general deliverables of the project are as represented in the table below. Bidders are expected to
include, as a part of their proposal, anticipated dates of delivery.
The consultants shall submit an Inception Report including an updated detailed work plan for
project implementation, covering tasks and responsibilities of all parties involved not just the
consultant’s personnel. Every week thereafter, and as needed, the consultant will hold progress
meetings with the County Government of Nakuru and PPP Unit to discuss any key constraints
encountered, work planned for the subsequent period, inputs and support needed from the County
and other parties and will update the work plan accordingly.
No. Deliverable
Due Date, to be completed by Bidders
(After contract signing)
1. Inception Report 2 weeks
2. Feasibility Study Report including PPP Implementation Plan
13 weeks
3. FS Study findings approvals and close out Report 14 weeks
All reports shall be submitted to the County Government of Nakuru and the PPP Unit in electronic
format as MS Word document (latest version) and printed in the relevant number of copies. Models
and workflow, process and data diagrams shall be submitted electronically in their appropriate
dynamic application files.
The consultant, in close coordination with the County Government of Nakuru, shall conduct quality
reviews to obtain feedback on all draft versions of deliverables as appropriate. The consultant shall
make presentations to the County Government of Nakuru on each deliverable (e.g. draft Feasibility
Study, Marketing Strategy, etc.), with the team’s key experts present.
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10. REMUNERATION SCHEDULE AND DISBURSEMENT ARRANGEMENTS
The Consultants will be paid on a lump sum basis in USD based on the below remuneration
schedule. Bidders must keep these in mind in writing their proposals and submit in the formats
prescribed in this RFP.
20% of the Amount upon delivery of the inception report;
60% of the Amount upon delivery of the draft feasibility study and presentation of the
findings and recommendations to the County Government and the PPP Unit; and
20% of the Amount upon acceptance of the final feasibility study by the County
Government of Nakuru and approval by the PPP Committee.
11. INSTITUTIONAL ARRANGEMENTS AND COUNTERPART ASSISTANCE
The advisory team shall work closely with the County Government of Nakuru team and other
government agencies as may be required during the assignment. A Project Appraisal Team
(PAT), composed of representatives from the County Government of Nakuru and the PPP
Unit, will be established to review and assess the acceptability of Project deliverables.
The County shall: (i) provide the consultants with all available pertinent data and previous
studies, if any, useful to the Project; and (ii) liaise with other agencies to ensure that the
consultant has access to all information required as may be allowed under Kenyan laws.
The consultants will: (i) be responsible for providing all necessary facilities and logistical
support for its staff, including office space, vehicles, miscellaneous transportation, office
equipment (computers, printers, telephone, and internet services), survey and investigation
equipment, communications, utilities, office supplies and other miscellaneous costs for carrying
out the services as per the requirements of the TOR; and, (ii) provide all the administrative,
technical professional, and support staff needed to carry out their services including
market/demand survey teams, social surveys teams, etc. as deemed necessary.
12. PROJECT BASED LEARNING
To ensure knowledge and skills transfer by the consultant to the County Government of Nakuru’s
project implementation team, the consultant will be expected to incorporate a project based learning
approach. All bidders are therefore expected to enumerate a clear and deliberate approach as to how
knowledge and skills will be transferred to the Nakuru County’s project implementation team.
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Appendix 1: PPP Project Proposal
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Appendix 2: Scoping Report – Nakuru County SWM
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Appendix 3: Nakuru County Waste Characterization Report, 2010 By Antea (France) and Engin-consult (Kenya)
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Appendix 4: Feasibility Report Template Minimum Parameters to be covered in the Feasibility Study Report
The Advisory team shall ensure that the Feasibility Study Report shall, as a minimum, conform
to the following outline:
INTRODUCTION
Project Background: Rationale and Genesis
Project Objectives
Approach and Methodology of the Feasibility Study
NEEDS ANALYSIS
Project’s Conformance to Sector Diagnostics and Master Plans
Demand Forecasting and User Projections
Institutional Settings
Scope of the Project
TECHNICAL AND COMMERCIAL SOLUTION OPTIONS ANALYSIS
This section needs to describe:
Alternative Technical Solutions which have been considered to achieve the Project Objectives.
Alternative Technical Solutions may be alternative engineering options
The evaluation of the Alternative Technical Solutions. This section needs to describe the
technical, economic, financial, legal, social, environmental and other criteria which have been
used to evaluate the alternative options, and to present the results of the evaluation,
including an Economic Cost-Benefit Analysis. It is expected that the evaluation be carried
out on the basis of high level capex and operating cost estimates
Recommended Technical Solution. The Recommended Technical Solution should be
described in more detail and an Outline Design provided. The description should include:
o Proposed Output Specifications
o Estimated CAPEX and OPEX Costs
PROJECT DUE DILIGENCE
The Study is expected to include a detailed Project Due Diligence on the basis of the Recommended
Technical Solution covering the following:
Legal Aspects
o Use and User Rights
o Relevant Financial Laws and Regulations
o Relevant Environmental and Heritage Laws, if applicable
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o Tax Legislations
o Labour Legislations
o Foreign Exchange Legislations
o Competition Legislation
o Building and Fire Codes, as applicable
o Zoning Rights and Land Use Regulations
o List of likely Project Agreements
o Dispute settlement mechanism and legal jurisdiction
Site Enablement
o Land Requirements
o Land Valuation
o Land Availability and Title Deed Endorsements
o Resettlement Needs, if applicable
o Relocation of Utilities
Economic and Social Cost Benefit Analysis (ESCBA)
o Identified Economic Benefits
o Identified Economic Costs
o Economic Evaluation and Sensitivity Analysis
o Assessment of Social Benefits and Costs
o Gender, Youth and other Social Concerns
Identified Environmental and Disaster Risk Concerns
o Environmental Impact Assessment (EIA) and Social Risk Assessment
o Climate and Disaster Risk Vulnerability Assessment
o Preliminary Environmental & Social Impact Assessment (PESIA) report
Financing, Funding and Revenue Implications
o Project Financing Needs – up front and recurring as driven by Capex requirements
o Project Financing Sources – indication of Financing Sources (private sector bank
debt, multilateral debt, public sector debt, project bonds, grants (indicate source),
developer equity, other (specify))
o Project Funding Needs – assessment of annual funding requirements to cover O&M,
debt service and other recurring costs
o Revenue requirements – assessment of revenue requirements to cover the Project’s
Funding Needs
o Revenue Sources – identified revenue sources – users, public sector service payments,
combination, other
o Affordability Analysis:
For public sector service payments compare against budget allocation and
evaluate availability. Determine need for Viability Gap Funding and quantify.
For user pays evaluate ability and willingness to pay of users
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PROCUREMENT OPTIONS AND PPP STRUCTURE ANALYSIS
This section should present an evaluation of the alternative options for procuring the project,
including the preferred PPP option. The section should cover:
Description of alternative procurement and PPP options considered and justification therefor.
Options must include traditional public sector procurement. For each option set out:
o The anticipated key roles and responsibilities of the private sector
o The key risk allocation under each option
Description of and justification for the evaluation criteria used in evaluating alternative
procurement options to include, inter alia:
o Value for Money assessment. The Value for Money assessment is expected to
examine both the choice between traditional public sector and PPP procurement, as
well as alternative risk allocations between the alternative PPP options. The report
should present clearly how the Public Sector Comparator Model, the Risk Adjusted
Public Sector Comparator Model, the PPP Reference Model and the Risk Adjusted
PPP Reference Model have been developed and populated with data
o Affordability
o Assessment of Fiscal Impact
o Assessment of impact on Public Sector Borrowing including any contingent liabilities
o Private sector feedback based on a Preliminary Market Sounding amongst potential
operators, developers and financiers
Presentation of the results of the Evaluation
Detailed description of the preferred Procurement Option and PPP Structure, including:
o Key Risk Allocation
o Outline Payment Mechanism
o Indicative Financing Structure
FINANCIAL MODELING
The Feasibility Study is expected to be supported by detailed and comprehensive Financial
Modeling. In particular, the financial model is expected to:
Support the Economic Cost Benefit Analysis of the Project and Alternative Technical
Solutions
Support the determination of revenue requirements to meet Project Funding needs
Support the determination of necessary tariff levels for user pays projects
Support the evaluation of affordability for both user pays and public sector pays models
including fiscal and public sector borrowing impact
Support in determining the Project’s Financing requirements and the evaluation of alternative
financing structures and sources
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Support in the evaluation of alternative procurement options and PPP options, including Value
for Money analysis
And in the implementation phase of the Project:
Support in the detailed design of the Payment Mechanism
Act as a shadow Bid Model and assist in evaluating bids and their robustness
The Report should include a description of the Financial Model and key outputs in support of the
various analyses and conclusions throughout the Report.
PROJECT RISK MATRIX
The report shall include a Project Risk Matrix (PRM) that quantifies the liabilities associated with the
recommended project configuration, and proposes how the same shall be managed and the funding
requirements. This information shall be of interest to the DMO in their review of the FCCL
assumed in the proposed project structure. On a minimum, the PRM shall contain the following
information:
Risk and its description
Expert’s estimate of the probability that the risk will be realized, together with the
rationale/assumption
Expert’s estimate of the impact of the risk as a percentage of the base
The base or amount
Most likely timing of the risk event
Cost of the risk in NPV terms
Risk distribution between public and private parties in terms of percentage of costs borne
Distribution of cost of the risk between parties in terms of NPV amount
Mitigation of risk
PPP PROJET AGREEMENTS TERMS SHEETS
Include here the Key Heads of Terms which will form the basis for a PPP contractual structure in
due course.
PROJECT IMPLEMENTATION SCHEDULE
