Integrated Solid Waste Management Project (Iswmp) - Ratnanagar Package

INTEGRATED SOLID WASTE MANAGEMENT PROJECT (ISWMP) - RATNANAGAR PACKAGE

SALIENT FEATURES

SN FEATURES CHARACTERISTICS

GENERAL 1 Name of Project Integrated Solid Waste management Project (ISWMP) - Ratnanagar Package (Ratnanagar Municipality, Kalika Municipality, Rapti Municipality and Khairahani Municipality) 2 Type Waste management 3 Population and Daily Waste Total Population Daily waste Generation generation (ton/day) Ratnanagar 82,224 26.07 Rapti 67,225 21.31 Kalika 49,138 15.58 Khairahani 66,033 20.93 Total 264,620 83.88 Average Waste Organic 74 Composition Reusable/ 23.67 (% by weight) Recyclables Others (Including 2.33 Hazardous Waste)

PROJECT LOCATION 1 Province Province 3 (Location Map) 2 Land Availability Yes (Ratnanagar Municipality, Kalika Municipality, Rapti Municipality and Khairahani Municipality) SN FEATURES CHARACTERISTICS

PROJECT COMPONENT/TECHNOLOGY 1 Collection of waste n Household and commercial collection of waste on certain interval 2 Anaerobic Digestion n Mesophilic (35-38 °C) / Thermophilic (above 50 °C) n The methane gas will be compressed, bottled and sold to local market n Organic Fertilizer and Pesticide will be generated

MARKET ASSESSMENT 1 Project Demand Scenario n There is a pressure on municipalities to Improve and modernize the collection methods and disposal technology. n There is a need to reduce the pressure on waste disposal practices and prices n 80% reduction in the current volume of waste going to landfill site which will extend the life of landfill site in the future. n The creation of renewable energy and other environmental benefits n Demand for organic fertilizer and pesticide are very high in local market n recyclable product could be sold or processed

DEVELOPMENT MODALITY 1 Development modality Public Private Partnership 2 Role of the Government of n Provide government land, Land acquisition, facilitation and Nepal project security n Facilitating various legal approvals/permits for the smooth operations of the project n Setting up of institutional framework for review & monitoring SN FEATURES CHARACTERISTICS

3 Role of the Private Sector n Plan, design, finance, engineer, construct, and develop the envisioned facilities and other components of the project n Operate, maintain and manage the project facility throughout the Concession Period n Development and execution of marketing and advertising strategies n Collection of revenues from the project during the Concession Period n Handover to the Government after the Concession Period 4 Development Period a. Pre- Construction Period: 6 months b. Financial Closure: 6 months c. Construction Period: 3 years d. Concession Period: 25 years (Up to 30 years)

INDICATIVE FINANCIALS 1 Total Project Cost (including ~ USD 5.50 million Interest During Construction) 2 Interest Rate (including hedging 12.00% cost) 3 Project IRR 14.18% 4 Equity IRR 15.08% APPLICATION PROCEDURE

PRE-QUALIFYING CRITERIA FOR THIS PROJECT

1. At least five years’ experience of developing and managing projects related to solid waste management in urban areas in Public Private Partnership (PPP) model. The total value of such projects should not be less than USD 2 million. 2. Net worth equivalent to at least USD 2 million at the time of making the application/proposal.

APPLICATION PROCEDURE

1. The developer/ investor who meet the above pre-qualifying criteria can make the application for this project. 2. Application may be made by a single entity or a group of entities (Consortium or JV) comprising up to three different companies/ parties, including a Lead member, coming together to implement the project. 3. A consortium/JV may fulfil the pre-qualifying criteria in a joint/cumulative manner, except for the number of years of work experience. 4. A fee of NRs 10,000 shall be payable for each application made (with application to one project counting as a single application). 5. The fee must be paid to OIBN (to the OIBN office or a dedicated desk at the Nepal Investment Summit), or by electronic transfer to the following bank account of OIBN:

Office Code: 301003502 Office Name: Office of the Investment Board Revenue Heading: 14229 Bank Name: Everest Bank Ltd. Swift Code: EVBLNPKA

Please use ‘Company name_Project name’ as the reference code for the payment made in the case of an online payment. 6. After payment of the fee is made, the OIBN shall assign an engagement manager and may provide additional documents or information relevant to the project (if available). 7. Applications shall be submitted in physical copies to the OIBN or emailed to [email protected]. 8. The Government of Nepal (OIBN or relevant government agency at the relevant level of government) shall review the proposal and ask additional information if required. 9. The Government of Nepal has final authority to decide on your application. DETAILED PROPOSAL CHECKLIST

1. Detailed profile of the developers/ investors, including profile of senior management team, annual report and audited financial statements for at least past three years (2015, 2016 & 2017), and consortium agreement or JV agreement or Memorandum of Understanding in the case of consortiums or JV. 2. Project concept, plan, and information on financial, economic, technical and environmental feasibility. 3. Method of project implementation, project development modality and work schedule 4. Business plan with basic financial statements 5. Financial arrangement and source of investment 6. Socio-economic contribution to Nepal 7. Expected support from GoN 8. Other relevant information, if any

CONTACT DETAILS

Office of the Investment Board ICC Complex, New Baneshwor Kathmandu, Nepal Phone: 977-1-4475277,977-1-4475278 Fax: 977-1-4475281 Email: [email protected] INTEGRATED SOLID WASTE MANAGEMENT PROJECT (ISWMP) - JEETPURSIMARA PACKAGE

SALIENT FEATURES

SN FEATURES CHARACTERISTICS

GENERAL 1 Name of Project Integrated Solid Waste management Project (ISWMP) - Jeetpursimara Package (Jeetpursimara Sub-Metropolitan City, Kalaiya Sub-Metropolitan City, Mahagadhimai Municipality, Nijgadh Municipality, Kolhabi Municipality) 2 Type Solid Waste Management Project

3 Population and Daily Waste Total Population Daily waste Generation generation (ton/day) Kalaiya Sub-Metropolitan City 145684 46.18 Jeetpursimara Sub-Metropolitan City 138423 43.88 Nijgadh Municipality 41628 13.20 Mahagadhimai Municipality 63253 20.05 Kolhabi Municipality 50701 16.07 Total 439689 139.38 Average Waste Composition Organic 83.07 Reusable/Recyclables 14.71 (% by weight) Others 2.22 (Including Hazardous Waste) SN FEATURES CHARACTERISTICS

PROJECT LOCATION 1 Province Province 2 2 Project Location Jeetpursimara (Location Map)

DEVELOPMENT MODALITY 1 Development modality Public Private Partnership 2 Role of the Government of n Provision of government land, land acquisition, facilitation Nepal and project security n Facilitating legal approvals/permits n Review & monitoring 3 Role of the Private Sector n Plan, design, build, finance and operate the facilities during the Concession Period n Collection of revenues from the project during the Concession Period n Handover to the Government after the Concession Period

4 Development Period a. Pre-Construction Period n 6 Months b. Financial Closure n 6 Months c. Construction Period n 3 Years d. Concession Period n 25 Years (upto 30 years)

INDICATIVE FINANCIALS 1 Total Project Cost (including ~ USD 8.3 million Interest During Construction) 2 Interest Rate 12% (including hedging cost) 3 Project IRR 13.96% 4 Equity IRR 14.72% APPLICATION PROCEDURE

PRE-QUALIFYING CRITERIA FOR THIS PROJECT

APPLICATION PROCEDURE

Office Code: 301003502 Office Name: Office of the Investment Board Revenue Heading: 14229 Bank Name: Everest Bank Ltd. Swift Code: EVBLNPKA

CONTACT DETAILS

Office of the Investment Board ICC Complex, New Baneshwor Kathmandu, Nepal Phone: 977-1-4475277,977-1-4475278 Fax: 977-1-4475281 Email: [email protected] HETAUDA SMART CITY PROJECT

SALIENT FEATURES

SN FEATURES CHARACTERISTICS

GENERAL 1 Name of Project Hetauda Smart City Project 2 Type Urban Planning

PROJECT LOCATION 1 Province Province 3 2 Project Location Padampokhari, Hetauda (Location Map)

PROJECT COMPONENT 1 Smart housing and buildings Sustainable, energy-efficient apartments and independent residential housing catered to people of all income brackets. The city would also have state-of-the-art conference and exhibition centre. It would also host a wide range of hotels, restaurants and resorts targeted for domestic and international tourists. 2 Smart supporting This would include integrated solid waste management infrastructure package collecting household and commercial waste and using the technology of anaerobic digestion (both mesophilic and thermophilic). It would also include provision of clean energy and water with smart technologies for meters, grids and management. 3 Supporting social Supporting social infrastructure, including a modern hospital, infrastructure schools, college, and facilities for old population. 4 Smart mobility Efficient and clean urban mobility services, including modern bus park and electric vehicle charging stations SN FEATURES CHARACTERISTICS 5 Cultural Village and Cultural village showcasing the rich cultural heritage and entertainment popular attractions of the traditional settlement. Some of the major infrastructure for the development of the cultural village could be: homestay, entrance gate, community centre, tourist information centre, security post/ booth, en-route amenities (tea house, public toilets, signage, etc.), walking foot trails or walking streets, cycling route, road network within the cultural village, etc. In addition, there would also be a theme park with the attractions such as rides, children play area, water bodies, along with the shops, restaurants and entertainment outlets. 6 Public Open Space, Play Public spaces where people can play, practices yoga, Ground meditation and socialize. 7 Smart technology IT infrastructure, connectivity and digitalization.

MARKET ASSESSMENT 1 Demand With the proliferation of the knowledge economy, innovation is being driven by cities and towns that are rich in talent, ideas, open culture and entrepreneurship. As governments all around the globe search for new ways to drive innovation by harnessing the knowledge economy and development in technology, there is a demand for smart cities. Such demand also exists in countries like Nepal. 2 Supply Globally, smart cities have risen as one of the latest urban typologies. In countries like Nepal, recently, there have been examples of initiatives and declarations to make municipalities and rural municipalities smart. However, most of them are at nascent stage and there is a need for private sector investment to make them successful. 3 Opportunity In this backdrop, there is an opportunity for profitable and impactful investment in establishing infrastructure for a smart and innovative city. Such city can contribute to demonstrate smart and sustainable urban development. Hetauda in Province 3 has the potential for further urbanization. Currently, population and urban facilities are concentrated in former municipal area. In case of former VDCs, settlements are seen concentrated on the road crossings and along the roads connecting those areas to former municipal area. Padampokhari, one of the former VDC has potential for future urbanization because of its location and current urbanization trend. Through timely planning and intervention, the area could be developed as a smart city area. SN FEATURES CHARACTERISTICS After the completion of proposed Kathmandu- Hetauda fast track (50 km), the travel time from the area to Kathmandu will be about an hour. The strategic location of the municipality i.e. being a link between national capital (Kathmandu), Terai and India, the city has immense potential to become industrial hub and tourism destination. Also, government’s plan to construct mega city incorporating the area between Hetauda and Bharatpur Municipalities will speed up the economic growth of the city.

INDICATIVE FINANCIALS 1 Total Project Cost (including ~ USD 300 million Interest During Construction) APPLICATION PROCEDURE

PRE-QUALIFYING CRITERIA FOR THIS PROJECT

1) At least five years’ experience of developing and managing smart city projects or projects of similar nature related to urban area development worth at least USD 100 million 2) Net worth equivalent to at least USD 100 million at the time of making the application/proposal.

APPLICATION PROCEDURE

Office Code: 301003502 Office Name: Office of the Investment Board Revenue Heading: 14229 Bank Name: Everest Bank Ltd. Swift Code: EVBLNPKA

CONTACT DETAILS

Office of the Investment Board ICC Complex, New Baneshwor Kathmandu, Nepal Phone: 977-1-4475277,977-1-4475278 Fax: 977-1-4475281 Email: [email protected]