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Legok Nangka Regional Solid Waste Treatment and Final Disposal Site Project

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MARKET SOUNDING FOR PPP BIDDING PROCESS BANDUNG, 29TH JANUARY 2018 LEGOK NANGKA REGIONAL SOLID WASTE TREATMENT AND FINAL DISPOSAL SITE PROJECT West Java Environmental Agency Waste Management Policy in West Java Foto : Syarif, DLH Jabar High population and social INTRODUCTION economic condition are a. Indonesia has 34 Provinces causing high solid waste b. West Java Province consists numbers and social & of 27 Local Governments: 9 environment problem cities and 18 Regencies Total solid waste c. Population 2016: ± generation in West Java 47 million inhabitants Province is more than d. The strategic partner 46.000 m3/day, equal to province to Indonesian 18.400 ton/day Capital e. The strategic position of West Java Province West Java Solid Waste Management/SWM Issues in West Java a. Fast growing population caused by urbanisation, inline with urban growing complexity of SWM b. Some problem of SWM in the Municipalities and Regencies are: . Limited land availability especially for urban area . Used technology is still open dumping or land filling . Less proper technology implementation . Lack of private participation . Limited budget for SWM c. Possible cooperation among governments and private sector in solid waste management LOCAL GOVERNMENT (Municipality / Regency) : Solid waste management from the source to the LOCAL AND REGIONAL SCOPE OF final treatment and disposal site SOLID WASTE MANAGEMENT PROVINCIAL GOVERNMENT (Cross boundary Cooperation) : Regional solid waste management at the final treatment and disposal site Regionalization of Landfill as Part of Solution E : The Existing Regional THE BENEFITS 1) Improving availability Landfill Site at Sarimukti PEMANUKAN SEA PORT INDRAMAYU SEA PORT P#4 of budgeting by P#1 : Regional SWTFD Project for Bekasi cooperation among BOGOR Metropolitan Karpur local(s), provincial (EPC & OM) P#1 and central E CIREBON SEA PORT government. Bogor 2006-2017 P#3 P#2 : Regional SWTFD Project for Metro BANDUNG Metropolitan Metro 2) Improving of SWM Cirebon (EPC & OM) P#2 technology (thermal Metro and/or non thermal) P#3 : Regional SWTFD Project for Bandung 3) Improving of public CIREBON Metropolitan and private (EPC & OM) partnership P#4 : Regional SWTFD Project for 4) Implementing of “3R” concept. BEKASI KARPUR Metropolitan (EPC & OM) PANGANDARAN SEA PORT Solid Waste Management/SWM SOLID WASTE SUPPLY PLAN Issues in West Java TO LEGOK NANGKA SWTFD Sumedang Regency 20 ton/day (10 Km) Bandung City Cimahi City 1.200 ton/day West Bandung (20 Km) PPP Project Regency 150 ton/day (40 Km) Legok Nangka Progress for 50 ton/day Regional SWTFD (45 Km) (1.820 ton/day) Legok Nangka Bandung Regency 100 ton/day (10 Km) 300 ton/day SWTFD (20 Km) Garut Regency Guarantee of Feed Stock Solid Waste Management/SWM SOLID WASTE SUPPLY PLAN Issues in West Java TO LEGOK NANGKA SWTFD Classification Composition Rate ( % ) Organic Organic + Leaves / Garden 47.2 Residus ( supposed to be organic ) 9.7 Plastic Recyclable plastic 12.1 Non recyclable plastic 5.9 Paper Paper 10.6 Metal Metal 0.2 Hazardous Waste Hazardous Waste 0.1 Other Mineral 0.9 Textile 7.4 Rubber 0.5 Disposal Nappies 5.0 Composites 0.0 Other 0.5 TOTAL 100 Solid Waste Management/SWM SOLID WASTE SUPPLY PLAN Issues in West Java TO LEGOK NANGKA SWTFD Total Land Available : 78,1 ha Incoming Waste LEACHEATE TREATNET Solid Waste Treatment and Final PLANT (1.800 ton/day) SANITARY Disposal for Bandung Area at LANDFILL AREA LEGOK NANGKA Capacity: 1.820 tons/day SWTFD PPP Scope: ACCESS-ROAD AND BASIC INFRASTRUCTURES Facility 1) SWTFD Facilities (COMPLETED) 2) EPC and OM OFFICE AND SUPPORTING AREA Commercial Residual Waste to by-product Sanitary Landfill SWTFD TREATMENT FACILITIES Estimated Project Cost Total US $265 Million COMPONENT ITEM INVESTMENT COST 1. Land 74.6 Ha (2011) 2. Access Road (2013) 3. Operation Road (2015) Government Support Land Acquisition and US $ 20 (Central and Provincial Basic Infrastructure 4. Sanitary Landfill (2015) Million Budget) 5. Leachate Treatment (2015) 6. Common Buildings (2016) Open technology approach US $ 245 SWTFD Facilities Private Partnership Million PPP Project Structure West Java Province PT PLN Bandung Allocation of funds Regency Interregional under APBD for Cooperation: payment of Tipping PPA • Waste supply and Fee West Bandung transportation; Debt Lender • Payment of Tipping Regency Fee; Tipping Fee Payment • Payment of Negative Impact BPSR KSPI IBE Sumedang Compensation PPP Agreement (BOT) Sponsors Equity (KDN) Regency Negative Impact Compensation City of Bandung EPC contractor Affected Communities Garut Regency O&M Operator City of Cimahi Suppliers Risk Allocation (1 of 2) Risk Component GCA IBE Preparation Phase Level of Feed-in-Tariff √ Acquisition of additional land for water intake √ Site suitability √ Certainty of waste supply √ Raw water supply √ Access and utilization of existing assets √ Accuracy of MSW composition √ Accuracy of MSW tonnages √ Accuracy of the Municipalities’ waste transportation logistics √ 13 Risk Allocation (2 of 2) Construction Phase GCA IBE Accuracy of transmission line specification √ Raw water Intake permit √ Utilization of existing Project assets by IBE √ Completion of landfill √ Compliance with Output Specification (Construction) √ Site suitability √ Completion delay and cost overrun √ Force Majeure √ √ Operation Phase Waste quality (Calorific Value) √ √ Waste supply (tons per day) √ Water supply (litres per second and quality of water supplied to the site) √ Feed-in Tariff for power offtake √ Tipping fee payment security √ Force Majeure (Natural and political) √ √ Compliance with Output Specification (Operations) √ Revenue from residual products √ Regulatory Risk – General (non-discriminatory) change in law √ 14 SOLIDReadiness WASTE SUPPLY Criteria PLAN Total Land Available : 78,1 ha TO LEGOK NANGKA SWTFD LEACHEATE TREATNET PLANT 1. Land Availability : 78,1 Ha (owned by WJPG) SANITARY LANDFILL AREA 2. Constructed Infrastructure: a. Main operation road b. Drainage ACCESS-ROAD AND BASIC INFRASTRUCTURES c. Landfill cell (COMPLETED) d. Gate e. Surrounding concrete fence OFFICE AND SUPPORTING AREA f. Weighing bridge 3. Revision of Environmental Impact SWTFD FACILITIES Assessment (on going) 4. Availability of Raw Water/Intake Permit (on process) 5. Acces Road to Legok Nangka: National Road Policy Umberalla 1. Presidential Decree No. 38 Year 2015 concerning PPP on Infrastructure Provision 2. Presidential Decree No. 58 Year 2017 concerning National Bidding Process Strategic Projects. (Prequalification dan 3. Presidential Decree concerning Environmental Sound Request for Proposal) Waste to Energy Projects (on preparation). will start from March 4. Head of LKPP Regulation No. 19 Year 2015 concerning 2018 Guidelines for PPP on Infratructure Provision 5. West Java Regulation No. 1 Year 2016 concerning Solid Waste Management (tipping fee guarantee) Offered Criteria to Legok Bidding Document Nangka SWTFD PPP Bidder Pre FS Document Prequalification Document Mandatory Criteria: 1.Minimum capacity 1,820 ton/day (+20%) 2.Greater Bandung Solid Waste Characteristic (high moisture, mixed waste) Request for 3.Limited land for treatment area ± 20 ha (total area: ± 90 ha) Proposal (RFP) 4.Maximum 15% landfilled residue Document 5.Limited water supply 20 L/sec 6.Maximum tipping fee IDR 386,000/ton 7.PPP Model: Built Operate Transfer (BOT) Contract 8.Technology preferences: Open Approach Document Required Actions • Pre-Feasibility Study will be finalized after Market Sounding • Confirmation of Applicable Feed-in Tariff (Coordinating Ministry of Maritime Affairs) • Application for Environmental Permit • Water Intake Permit (SIPPA) application to Public Works and Housing Agency • Waste composition and fleet assessment study • DPRD approval • Public Consultation was held in December 2017 • Central Government utilization of Ministry of Public Works and Housing asset • Involvement of IIGF for this project is in progress 18 Overall Project Timeline Nov Dec Jan Feb Mar Jun Sept Oct Public Consultation Market Sounding Pre-FS Completion PQ Preparation PQ Document Notice RfP Preparation RfP Document Notice PPP Bidding Process Winning Bidder Announcement EXISTING CONDITION OF LEGOK NANGKA SWTFD Hatur Nuhun THANK YOU For further information, please contact: 1. Head of West Java Environmental Protection Agency (Dr. Anang Sudarna) Email: [email protected], Mobile: +62 811 2351958 2. Head of Regional Solid Waste Management Technical Unit (Ir. Edi Bahtiar, M.Sc) Email: [email protected], Mobile: +62 812 21264704 West Java Environmental Protection Agency Address: Jalan Naripan No. 25 Bandung 40111 West Java – INDONESIA Tel: +62 22 4204871 Fax: +62 22 4231570 Email: [email protected] .
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