LEGOK NANGKA REGIONAL SOLID WASTE TREATMENT AND FINAL DISPOSAL SITE PROJECT
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1 MARKET SOUNDING FOR PPP BIDDING PROCESS BANDUNG, 29 TH JANUARY 2018 LEGOK NANGKA REGIONAL SOLID WASTE TREATMENT AND FINAL DISPOSAL SITE PROJECT West Java Environmental Agency
2 Waste Management Policy in West Java Foto : Syarif, DLH Jabar
3 INTRODUCTION a. Indonesia has 34 Provinces b. West Java Province consists of 27 Local Governments: 9 cities and 18 Regencies c. Population 2016: ± 47 million inhabitants d. The strategic partner province to Indonesian Capital e. The strategic position of West Java Province High population and social economic condition are causing high solid waste numbers and social & environment problem Total solid waste generation in West Java Province is more than m3/day, equal to ton/day West Java
4 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
5 LOCAL GOVERNMENT (Municipality / Regency) : Solid waste management from the source to the final treatment and disposal site LOCAL AND REGIONAL SCOPE OF SOLID WASTE MANAGEMENT PROVINCIAL GOVERNMENT (Cross boundary Cooperation) : Regional solid waste management at the final treatment and disposal site
6 Regionalization of Landfill as Part of Solution E : The Existing Regional Landfill Site at Sarimukti P#1 : Regional SWTFD Project for BOGOR Metropolitan (EPC & OM) P#2 : Regional SWTFD Project for BANDUNG Metropolitan (EPC & OM) P#3 : Regional SWTFD Project for CIREBON Metropolitan (EPC & OM) P#4 : Regional SWTFD Project for BEKASI KARPUR Metropolitan (EPC & OM) P#1 Bogor Metro P#4 Bekasi Karpur E P#2 Metro Bandung PEMANUKAN SEA PORT INDRAMAYU SEA PORT P#3 Metro Cirebon CIREBON SEA PORT THE BENEFITS 1) Improving availability of budgeting by cooperation among local(s), provincial and central government. 2) Improving of SWM technology (thermal and/or non thermal) 3) Improving of public and private partnership 4) Implementing of 3R concept. PANGANDARAN SEA PORT
7 Solid Waste Management/SWM Issues in West Java SOLID WASTE SUPPLY PLAN TO LEGOK NANGKA SWTFD West Bandung Regency 50 ton/day (45 Km) Cimahi City 150 ton/day (40 Km) Sumedang Regency Bandung City Bandung Regency ton/day (20 Km) 300 ton/day (20 Km) 20 ton/day (10 Km) 100 ton/day (10 Km) Garut Regency Legok Nangka Regional SWTFD (1.820 ton/day) PPP Project Progress for Legok Nangka SWTFD
8 Guarantee of Feed Stock
9 Solid Waste Management/SWM Issues in West Java SOLID WASTE SUPPLY PLAN 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
10 Solid Waste Management/SWM Issues in West Java Total Land Available : 78,1 ha SANITARY LANDFILL AREA ACCESS-ROAD AND BASIC INFRASTRUCTURES (COMPLETED) LEACHEATE TREATNET PLANT SOLID WASTE SUPPLY PLAN TO LEGOK NANGKA SWTFD Incoming Waste (1.800 ton/day) SWTFD Facility Solid Waste Treatment and Final Disposal for Bandung Area at LEGOK NANGKA Capacity: tons/day PPP Scope: 1) SWTFD Facilities 2) EPC and OM OFFICE AND SUPPORTING AREA SWTFD TREATMENT FACILITIES Commercial by-product Residual Waste to Sanitary Landfill
11 Estimated Project Cost Total US $265 Million COMPONENT ITEM INVESTMENT COST 1. Land 74.6 Ha (2011) 2. Access Road (2013) Land Acquisition and Basic Infrastructure 3. Operation Road (2015) 4. Sanitary Landfill (2015) US $ 20 Million Government Support (Central and Provincial Budget) 5. Leachate Treatment (2015) 6. Common Buildings (2016) SWTFD Facilities Open technology approach US $ 245 Million Private Partnership
12 PPP Project Structure West Java Province PT PLN Bandung Regency West Bandung Regency Sumedang Regency Interregional Cooperation: Waste supply and transportation; Payment of Tipping Fee; Payment of Negative Impact Compensation (KDN) Allocation of funds under APBD for payment of Tipping Fee Negative Impact Compensation BPSR Tipping Fee Payment KSPI PPP Agreement (BOT) IBE PPA Debt Equity Lender Sponsors City of Bandung EPC contractor Affected Communities Garut Regency O&M Operator City of Cimahi Suppliers
13 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
14 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
15 Total Land Available : 78,1 ha OFFICE AND SUPPORTING AREA SANITARY LANDFILL AREA ACCESS-ROAD AND BASIC INFRASTRUCTURES (COMPLETED) LEACHEATE TREATNET PLANT SWTFD FACILITIES SOLID Readiness WASTE SUPPLY Criteria PLAN TO LEGOK NANGKA SWTFD 1. Land Availability : 78,1 Ha (owned by WJPG) 2. Constructed Infrastructure: a. Main operation road b. Drainage c. Landfill cell d. Gate e. Surrounding concrete fence f. Weighing bridge 3. Revision of Environmental Impact Assessment (on going) 4. Availability of Raw Water/Intake Permit (on process) 5. Acces Road to Legok Nangka: National Road
16 Policy Umberalla 1. Presidential Decree No. 38 Year 2015 concerning PPP on Infrastructure Provision 2. Presidential Decree No. 58 Year 2017 concerning National Strategic Projects. 3. Presidential Decree concerning Environmental Sound Waste to Energy Projects (on preparation). 4. Head of LKPP Regulation No. 19 Year 2015 concerning Guidelines for PPP on Infratructure Provision 5. West Java Regulation No. 1 Year 2016 concerning Solid Waste Management (tipping fee guarantee) Bidding Process (Prequalification dan Request for Proposal) will start from March 2018
17 Offered Criteria to Legok Nangka SWTFD PPP Bidder Pre FS Document Mandatory Criteria: 1.Minimum capacity 1,820 ton/day (+20%) 2.Greater Bandung Solid Waste Characteristic (high moisture, mixed waste) 3.Limited land for treatment area ± 20 ha (total area: ± 90 ha) 4.Maximum 15% landfilled residue 5.Limited water supply 20 L/sec 6.Maximum tipping fee IDR 386,000/ton 7.PPP Model: Built Operate Transfer (BOT) 8.Technology preferences: Open Approach Bidding Document Prequalification Document Request for Proposal (RFP) Document Contract Document
18 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
19 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
20 EXISTING CONDITION OF LEGOK NANGKA SWTFD
21 Hatur Nuhun THANK YOU For further information, please contact: 1. Head of West Java Environmental Protection Agency (Dr. Anang Sudarna) Mobile: Head of Regional Solid Waste Management Technical Unit (Ir. Edi Bahtiar, M.Sc) Mobile: West Java Environmental Protection Agency Address: Jalan Naripan No. 25 Bandung West Java INDONESIA Tel: Fax:
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