RFP-Development of Integrated Municipal Solid Waste Management System for the entire Urban and Rural Areas of Diu District

RFP-Development of Integrated Municipal Solid Waste Management System for the entire Urban and Rural Areas of Diu District including Diu Municipal Council through PPP Model on Design, Build, Finance, Operate & Transfer (DBFOT) Basis

About the Organization:

National Institute of Urban Affairs (NIUA) is a premier institute for research, capacity building and dissemination of knowledge for the urban sector in India. They conduct research on urbanization, urban policy and planning, municipal finance and governance, land economics, transit oriented development, urban livelihoods, environment & climate change and smart cities.

Background:

Diu Smart City Ltd. (the “Authority”) has the objective of providing Municipal Solid Waste Management (MSWM) Services in the Diu Municipal Council urban area. The authority has been authorized by the UT Administration to initiate development of integrated SWM system in the entire Diu district including the DMC area and the Rural areas or Panchayat areas. In this regard, the Authority is seeking private sector participation to improve the management of MSW through the development of an integrated MSW management (IMSWM) system encompassing collection and transportation of MSW and the development, operation and maintenance of the MSW processing and disposal facility on Public Private Partnership (PPP) basis (the “Project”).

The Authority has initiated competitive single stage two envelop bidding process (the "Bidding Process") for selection of private sector operator who will be responsible for design, build, finance, operate, maintain and transfer the IMSWM facilities.

The Project:

Project coverage area: The project covers Diu district, including both the urban area (under Diu Municipal Council) and the rural area (four Panchayats). The municipal area is divided into thirteen wards – six in Diu and seven in Ghoghla. Total houses in the municipal council area are around 8000. There are four nos. of village panchayats, namely – Saudwadi, Bucharwada, Zholawadi, Vanakbara. As per 2011 census the rural population in 28083 and the urban population is 23991.

Indicative Project cost (Estimated Capital Expenditure): Rs. 8.49 crore. This is the estimated initial capital expenditure for the Project, and does not include Operation Expenses of the Project and the estimated Tipping fees payable by the Authority.

The bidder shall assess the escalation in future waste generation and accordingly shall make provision for capital addition to meet the increasing volume of waste in future

Eligibility of Bidders

For determining the eligibility of the Bidders the following shall apply

1. A Bidder shall not have a conflict of interest (the "Conflict of Interest") that affects the Bidding Process. Any Bidder found to have a Conflict of Interest shall be disqualified. In the event of disqualification, the Authority shall be entitled to forfeit and appropriate the Bid Security and/or Performance Security, as the case may be, without prejudice to any other right or remedy that may be available to the Authority under the Bidding Documents or otherwise. Determining the Conflict of Interest shall be the prerogative of the Authority.

2. Without limiting the generality of the above, a Bidder shall be deemed to have a Conflict of Interest affecting the Bidding Process, if:

• the Bidder, its Member or Associate (or any constituent thereof) and any other Bidder, its Member or any Associate thereof (or any constituent thereof) have common controlling shareholders or other ownership interest; provided that this qualification shall not apply in cases where the direct or indirect shareholding of a Bidder, its Member or an Associate (or any constituent thereof) is less than 25% of the paid up and subscribed capital of the other Bidder, its Member or Associate (or any constituent thereof); or
• a constituent of such Bidder is also a constituent of another Bidder; or
• such Bidder, its Member or Associate receives or has received any direct or indirect subsidy, grant, loan or subordinated debt from any other Bidder, its Member or Associate, or has provided any such subsidy, grant, loan or subordinated debt to any other Bidder, its Member or Associate thereof; or
• such Bidder has the same legal representative for purposes of this Bid as any other Bidder; or
• such Bidder has a relationship with another Bidder, directly or through common third parties, that puts either or both of them in a position to have access to each other’s’ information about, or to influence the Bid of either or each other; or
• such Bidder has participated as a consultant to the Authority in the preparation of any documents, design or technical specifications of the Project.

3. In case the Bidder is a Consortium, the Members of the Consortium shall nominate one member as the lead member (the “Lead Member”), who shall have an equity share holding of at least 51% (fifty-one percent). The nomination shall be supported by a Power of Attorney signed by all the members of the Consortium.

4. Members of the Consortium shall enter into a Consortium Agreement substantially in the form specified in this RFP (the “Consortium Agreement”), for the purpose of submitting the Consortium Agreement to be submitted along with the Bid.

5. The Consortium Agreement shall, inter alia:

• convey the intent to form a Project Company with shareholding/ownership equity commitments in accordance with this RFP;
• clearly outline the proposed roles and responsibilities of each Member and the Lead Member; brief description of the roles and responsibilities of individual members, particularly with reference to financial, technical and O&M obligations;
• commit the minimum equity stake to be held by each Member, including the Lead Member, in the Project Company till the completion of Project after the execution of the Concession Agreement; and
• include a provision stating that all Members of the Consortium shall be jointly and severally liable for all the obligations of the Concessionaire in relation to the Project.
• Except as provided under the Bidding Documents, there shall not be any amendment to the Consortium Agreement without the prior written consent of the Authority, as the case may be.

6. The Lead Member should submit a Power of Attorney, authorizing the signatory of the Bid. Other Members of the Consortium need not submit Power of Attorney, authorizing the signatory of the Bid.

7. The members of the Consortium shall form an appropriate Special Purpose Vehicle (the “SPV”) to execute the Project if awarded to the Consortium. The SPV formed for this project needs to be specific to this contract only. On completion of this contract, the SPV shall be dissolved.

8. An individual Bidder cannot at the same time be member of a Consortium applying for selection. Further, a member of a particular Bidder Consortium cannot be member of any other Bidder Consortium applying for selection;

9. Any award of concession pursuant to this RFP shall be subject to the terms of the Bidding Documents.

The following conditions shall be adhered to while submitting a Bid:

• Bidders should attach clearly marked and referenced continuation sheets in the event that the space provided in the prescribed forms in the Annexes is insufficient.
• in responding to the selection submissions, Bidders should demonstrate their capabilities; and
• In case the Bidder is a Consortium, each Member should substantially satisfy the selection requirements to the extent specified herein.

Project Duration Development Period

• Collection & Transportation: To be commenced within 31 days from the date of signing of the Concession Agreement and continued for entire concession period.
• Processing & Disposal: To be commenced within 4 months from the date of signing of the Concession Agreement or 3 months from the date of issue of Environmental Clearance (EC)/ Consent to Establish (CTE) to the project whichever is earlier and continued for entire concession period
• Rehabilitation (Bio-Mining & Remediation) of the existing landfill site complete before 12 month of singing o concession agreement.

Concession Period: 20 years from the actual date of signing the Concession Agreement

The tender notice is available on the website https://ddtenders.gov.in.

Last Date: 09/04/2020 14:00 hrs

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