Innovative plastic sorting and reprocessing solution

Copenhagen January 2017 Our ref. 059767-0002 abn/csa/nmp Innovative plastic sorting and reprocessing solution Descriptive document KØBENHAVNS KOMMUNE

2/27 Contents 1. Background and purpose... 3 2. Contracting authorities... 4 3. Indicative timeframe... 5 4. Communication... 6 5. Object... 8 6. Procedure... 9 7. Conditions for participation... 12 8. Dialogue... 19 9. Final tender... 23 10. Award of contract... 24 Procurement documents In addition to the descriptive document, the procurement documents consist of: Appendix 1: Appendix 2: Appendix 3: Appendix 4: Appendix 5: Contract notice Contracting Authorities Draft contract Preliminary technical specifications ESPD Request file The procurement documents are available for unrestricted and full direct access, free of charge, at: http://cleancluster.dk/documents-and-conditions-the-tender-2/ The draft contract and the preliminary technical specifications are drawn up for the purpose of the dialogue. CLEAN intends to draw up a revised set of procurement documents on the basis of the dialogue which will be specified before the submission of final tenders.

3/27 1. Background and purpose 1.1 Background According to the latest national waste statistics (2014), about 84,000 tonnes of plastic waste are collected from Danish households and commercial enterprises each year. Hereof, about 32,000 tonnes are municipal waste, of which 50% come from recycling stations and 50% come from household collection schemes, and 52,000 tonnes are industrial waste. In addition, there is a large quantity of plastic waste which is not yet separated at source. Hence, it is estimated that there potentially is an additional 150,000 tonnes to 200,000 tonnes of plastic waste from Danish households each year. The project aims to create a market for recycling of plastic waste from households and similar types of industrial plastic waste from commercial enterprises. The waste stream from these sources will include plastic packaging, large plastic products from bulky household waste (from recycling stations) as well as other types of plastic waste from commercial activities (e.g. from recycling stations, small enterprises participating in the municipal collection schemes and facilities for preliminary sorting). In addition, the waste stream will also include a mixed plastic and metal fraction from households. The tender builds on the recommendations of the Innovation Platform for Plastics, which CLEAN conducted in 2013 with participation from more than 100 Danish plastics companies and experts in the field. The platform concluded that a tender should be prepared for separation of household plastic waste and similar plastic waste from enterprises. The challenges include: a lack of an overall supply of plastic waste from households and companies, but also uncertainty concerning the resale of the reprocessed plastic. The environmental benefits from an increase in recycling of plastic waste are: Reduced emissions of CO 2 from waste incineration Reused and recycled plastic will replace the use of fossil raw materials to create virgin plastic In 2013, the Danish government published a strategy for better use of resources, Denmark without waste, based on similar policy paper from the EU. This strategy focuses on the quality of recycling.

4/27 The tender is also conducted in the light of the European Commission s Circular Economy Package and the revision of the EU Directive on Waste, and the EU Directive on Packaging and Packaging Waste. Here, the European Commission has proposed significantly higher targets for reuse and recycling and new rules on the calculation of the attainment of the targets. 1.2 Purpose CLEAN has taken the initiative to conduct an innovative procurement procedure in cooperation with other public stakeholders. The procedure aims to develop an innovative plastic sorting and reprocessing solution for household plastic waste and similar types of industrial plastic waste from commercial enterprises. The main purpose of the procurement procedure is to identify an innovative solution to the use of resources from plastic waste in a circular economy perspective. Important requirements for this solution is that it should improve on the current solutions so that plastic waste can be reused and recycled at a price, quality and in a quantity that is actually attractive to companies that use reprocessed plastic in their production. Since the waste stream also includes a mixed plastic and metal fraction from household, the solution must be able to separate the plastic and metal fractions. It is also a requirement that the solution is attractive to the Contracting Authorities and waste management companies that supply plastic waste, in terms of price and quality. 2. Contracting authorities 2.1 Names and addresses The Contracting Authorities responsible for the procedure are specified in Appendix 2: and hereafter referred to as the ( Contracting Authorities ). Contracts in relation to the procedure will be concluded separately with each of the Contracting Authorities. The Contracting Authorities expected quantities of plastic waste in 2018 are specified in Appendix 2:.

5/27 2.2 Responsible for conducting the procedure The procedure will be conducted on behalf of the Contracting Authorities by: CLEAN Vesterbrogade 1 E 1620 København V Denmark National registration no.: 29727538 ( CLEAN ) 2.3 Contact person All contact prior to the submission of requests to participate and during the procedure must be submitted in writing to: Anne Dorthe Josiassen E-mail: adj@cleancluster.dk 3. Indicative timeframe Contract notice sent for publication: 27 January 2017 Publication of procurement documents: 30 January 2017 Information meeting: 13 March 2017 Time limit for receipt of requests to participate: 18 April 2017 Estimated time limit for receipt of documentation: 5 May 2017 Estimated time for dispatch of invitations to participate to selected candidates: 12 May 2017 Estimated time limit for receipt of consultation paper for dialogue meeting 1: week 23 of 2017 Estimated time for dialogue meeting 1: week 25 of 2017 Estimated time for dispatch of discussion paper for dialogue meeting 2: week 34 of 2017 Estimated time limit for receipt of consultation paper for dialogue meeting 2: week 38 of 2017 Estimated time for dialogue meeting 2: week 40 of 2017 Estimated time for closing of dialogue and dispatch of revised procurement documents: week 48 of 2017

6/27 Estimated time limit for receipt of final tenders: 23 February 2018 Estimated time limit for receipt of documentation: week 12 of 2018 Estimated time for dispatch of information regarding award of contract: week 12 of 2018 Estimated time for finalising of contract: week 15 of 2018 Estimated time for conclusion of contracts: week 16 of 2018 CLEAN reserves the right to change the indicative timeframe at any time during the procedure which will be communicated to the economic operators, cf. section 4.3. 4. Communication 4.1 Information meeting CLEAN will hold an information meeting where CLEAN will present the project and interested economic operators will be given the opportunity to ask questions. The information meeting will focus on the background and purpose of the project, the conditions for participation and the formalities to be observed when submitting a request for participation. The information meeting is scheduled to take place in Copenhagen on 13 March 2017. The time and address of the information meeting will be published at the same site as the procurement documents. Minutes of the information meeting and any additional information will be published at the same site as the procurement documents. 4.2 Inquiries and questions All inquiries and questions during the procedure must be submitted in writing in either Danish or English to the contact person, cf. section 2.3. E-mails with inquiries and questions must refer to Innovative plastic sorting and reprocessing solution in the subject. Economic operators should refrain from calling the contact person or making personal contact concerning inquiries and questions.

7/27 Economic operators are encouraged to make inquiries, ask questions and direct attention to any errors or inexpediencies in the procurement documents as early as possible. 4.3 Answers and additional information Prior to the time limit for receipt of requests to participate, cf. section 6.3, CLEAN will submit answers in anonymous form and additional information at the same site as the procurement documents. Prior to the time limit for receipt of requests to participate, CLEAN reserves the right to answer only inquiries and questions regarding the conditions for participation cf. section 7. After the selection of economic operators, cf. section 7.9, CLEAN will send answers in anonymous form and additional information simultaneously to the selected economic operators. CLEAN recommends that inquiries and questions are submitted as early as possible and no later than 14 days prior to the time limit for receipt of requests to participate, cf. section 6.3, or the time limit for receipt of final tenders, cf. section 9.2. Economic operators can only expect to receive answers and additional information concerning inquiries or questions received later than 14 days prior to the time limit for receipt of requests to participate, cf. section 6.3, or the time limit for receipt of final tenders, cf. section 9.2, if CLEAN can submit the answers and the additional information 6 days prior to the time limit in question. 4.4 Submission of final tenders and requests to participate Final tenders and requests to participate must be submitted to the following address: CLEAN Vesterbrogade 1 E 1620 København V Denmark Requests to participate and final tenders must be submitted in a sealed envelope or package marked: Innovative plastic sorting and reprocessing solution DO NOT OPEN IN MAILING.

8/27 A receipt stating date and time of delivery can be issued upon request. 5. Object 5.1 Scope of the procurement The Contracting Authorities responsibilities regarding delivery of plastic waste and mixed plastic and metal waste, the duration of the contract etc. will be discussed during the dialogue and specified in the procurement documents before the submission of final tenders. The expected quantities of plastic waste from the Contracting Authorities are stated in Appendix 2:. The economic operator is however not guaranteed that all Contracting Authorities will conclude a contract. The contract does not necessarily require the establishment of a new plastic sorting and reprocessing facility. However, CLEAN and the Contracting Authorities have no knowledge of an existing facility that can reuse and recycle plastic at a price, quality and in a quantity that is actually attractive to companies that use reprocessed plastic in their production. 5.2 Information about lots CLEAN has decided not to divide the contract into lots because of the complexity of the services to be performed and the purpose of improving the current standards so that plastic waste can be reused and recycled at a price, quality and in a quantity that is actually attractive to companies that use reprocessed plastic in their production. 5.3 Description of the procurement The procurement aims to develop an innovative plastic sorting and reprocessing solution. Important requirements for this solution is that it should improve on the current solutions so that plastic waste can be reused and recycled at a price, quality and in a quantity that is actually attractive to companies that use reprocessed plastic in their production. The services are expected to include sorting, separation, reuse and recycling of plastic waste and sale of the end products resulting from the process. The services are also expected to include sorting and separation of the mixed plastic and metal waste.

9/27 The economic operator s responsibilities regarding reception of plastic waste and of mixed plastic and metal waste, sorting, separation, treatment, quality and quantity of the end products etc. will be discussed during the dialogue and specified in the procurement documents before the submission of final tenders. 5.4 Variants and coordinated tenders Variants and coordinated tenders can be accepted. The use of variants and coordinated tenders will be discussed during the dialogue and specified in the procurement documents before the submission of final tenders. 5.5 Options The contract can include options. Options will be discussed during the dialogue and specified in the procurement documents before the submission of final tenders. 6. Procedure 6.1 Legislation The procedure is conducted in accordance with the Danish Public Procurement Act (Act no. 1564 of 15 December 2015). The official Danish version is available at: https://www.retsinformation.dk/forms/r0710.aspx?id=175507 An English translation from the Danish Competition and Consumer Authority is available at: http://www.kfst.dk/~/media/kfst/offentlig%20konkurrence/the%20public%20pro curement%20act/the%20public%20procurement%20act.pdf 6.2 Type of procedure The procedure is performed as a competitive dialogue.

10/27 6.3 Time limit for receipt of requests to participate Date: 18 April 2017 Local time: 12:00 6.4 Estimated date of dispatch of invitations to participate to selected candidates Date: 12 May 2017 6.5 Languages in which tenders or requests to participate may be submitted Requests to participate may be submitted in Danish or in English. Final tenders may only be submitted in English. 6.6 Confidentiality In accordance with section 5 of the Public Procurement Act, CLEAN may not disclose confidential information provided by an economic operator in connection with the procedure without the prior consent of the economic operator. CLEAN intends to draw up a joint set of revised procurement documents with functional requirements which can encompass several technical solutions on the basis of the dialogue. However, CLEAN has no intention of cherry picking, forwarding or disclosing confidential information provided by the economic operators during the procedure. Economic operators must therefore clearly mark any sensitive technical elements, business secrets or similar information as confidential if CLEAN cannot incorporate it in the revised procurement documents. Such references to confidential information must be specific and cannot encompass entire documents. The commitment of confidentiality must naturally be disregarded to the extent CLEAN or the Contracting Authorities are required by law or ordered by a competent authority to disclose the information. If CLEAN or the Contracting Authorities are requested to give access to confidential information, the economic operators will be heard to the extent possible before the request is processed. CLEAN and the Contracting Authorities are also entitled to disclose information in case of a complaint referred to the Danish Complaints Board for Public Procurement or legal proceedings in relation to the procedure.

11/27 6.7 Costs and remuneration Economic operators will not be entitled to receive payment for any costs, including costs related to submission of requests to participate and final tenders. Economic operators will not receive remuneration for their participation during the dialogue. Requests to participate, material submitted during the dialogue and final tenders will be deemed to be the property of CLEAN and the Contracting Authorities and will not be returned to the economic operators. 6.8 Provisos Any provisos must be clearly marked and specified in the final tender. CLEAN is obliged to reject final tenders including provisos in relation to the essential aspects of the contract, including the minimum requirements in the technical specifications. Moreover, CLEAN is not entitled to make any changes in the minimum requirements during the dialogue. CLEAN is entitled to reject final tenders including provisos. Economic operators are therefore encouraged not to include provisos, prerequisites or standard terms and conditions in their final tenders. Where an economic operator identifies provisions in the procurement documents which have the effect that the economic operator is unable to submit a final tender without provisos, the economic operator is advised to submit an inquiry, cf. section 4.2. While observing the principles of equal treatment, transparency and proportionality, CLEAN may request economic operators to supplement, specify or complete requests for participation or final tenders by submitting relevant information or documentation, where the information or documents submitted by economic operators in relation to requests to participate or final tenders are incomplete or incorrect, or where specific documents are missing. 6.9 Cancellation While observing the principles of equal treatment, transparency and proportionality, CLEAN is entitled to cancel the procedure.

12/27 7. Conditions for participation 7.1 Contents of request to participate Economic operators must submit the European Single Procurement Document ( ESPD ) as preliminary evidence that the economic operators are not subject to the grounds for exclusion stipulated in section 7.6, that the economic operators fulfil the minimum requirements for suitability stipulated in sections 7.7 and 7.8 and of how they meet the objective and non-discriminatory criteria for selection stipulated in section 7.9. Requests to participate must include: 1 printed and signed ESPD Response 5 printed copies of the ESPD Response 1 exported ESPD Response (XML file) on a USB memory stick The ESPD Response does not have to include: Information concerning subcontractors on whose capacity the economic operator does not rely (Part II.D) Purely national exclusion grounds (Part III.D) Quality assurance schemes and environmental management standards (Part IV.D) CLEAN reserves the right to request economic operators to clarify or supplement the information in the ESPD Response. The Danish Competition and Consumer Authority provide guidance in Danish on submitting the ESPD Response: http://www.kfst.dk/offentlig-konkurrence/udbud/udbudsregler/espd 7.2 How to complete the ESPD Response In order to complete the ESPD Response, economic operators must use the European Commission s free web service for filling in the ESPD electronically: https://ec.europa.eu/growth/tools-databases/espd/ On the Start page, economic operators must select I am an economic operator and Import ESPD.

13/27 The ESPD Request file to be uploaded is the one provided in the procurement documents. 7.3 Information about the economic operator (ESPD Part II.A) On the Procedure page, economic operators must fill in information concerning the economic operator, except whether the economic operator: Is a sheltered workshop, a social business or whether it will provide for the performance of the contract in the context of sheltered employment programmes Is registered on an official list of approved economic operators or whether it does have an equivalent certificate (e.g. under a national (pre)qualification system) 7.4 Information about representatives of the economic operator (ESPD Part II.B) On the Procedure page, economic operators must fill in information concerning the person or persons who represent the economic operator in relation to the procurement procedure. 7.5 Groups of economic operators and other entities (ESPD Part II.C) On the Procedure page, economic operators must fill in whether they rely on the capacities of other entities in order to meet the minimum requirements for suitability under sections 7.7 and 7.8. Economic operators must answer Yes irrespective of whether the request for participation is submitted by a group of economic operators or from a single economic operator that relies on the capacity of other entities. Requests for participation from a group of economic operators or where the economic operator relies on other entities must include: An ESPD Response from each economic operator and other entities with all relevant information, cf. section 7.1 None of the group of economic operators and other entities may be subject to grounds for exclusion, cf. section 7.6. It is only required that the group of economic operators and other entities altogether fulfil the minimum requirements for suitability under sections 7.7 and 7.8.

14/27 When an economic operator is formed by a group of economic operators or based on the economic and financial standing, cf. section 7.7, of other entities, the economic operators and the entities referred to are subject to joint and severable liability for the performance of the contract. When an economic operator is based on the technical and professional abilities of other entities in relation to the performance of specific aspects of the services, cf. section 7.8, the specific aspects of the services shall be performed by the entity on which the economic operator is based. 7.6 Grounds for exclusion Economic operators are excluded from participating in the procedure if they are subject to any of the grounds for exclusion in this section 7.6. Economic operators will also be excluded if they are subject to the grounds for exclusion during the procedure. An economic operator will, however, not be excluded if the economic operator provides sufficient documentation that the economic operator is reliable ( selfcleaning ), even if the economic operator is subject to one or more of the grounds for exclusion. 7.6.1 Criminal convictions (ESPD Part III.A) On the Exclusion page, economic operators must fill in whether they are subject to grounds for exclusion. Economic operators are excluded from participating in the procedure if they have been convicted by final judgement or fined within the last 4 years for the following in accordance with section 135(1) of the Public Procurement Act: Participation in a criminal organisation Corruption Fraud Terrorist offences or offences linked to terrorist activities Money laundering or terrorist financing Child labour and other forms of trafficking in human beings I accordance with section 135(2) of the Public Procurement Act, economic operators are also excluded where a person who has been convicted by final judgement or who has been fined for the actions above is a member of the board, manage-

15/27 ment or supervisory committee of the economic operator. Further, economic operators are excluded if the convicted person is authorised to represent, monitor or make decisions in the board, management or supervisory committee of the economic operator. 7.6.2 Payment of taxes or social security contributions (ESPD Part III.B) On the Exclusion page, economic operators must fill in whether they are subject to grounds for exclusion. Economic operators are excluded if they have unpaid overdue debt of DKK 100,000 or more to public authorities in accordance with section 135(3) of the Public Procurement Act in relation to: Payment of taxes Payment of social security An economic operator is, however, not excluded where the economic operator provides guarantee of payment of the part of the debt which constitutes DKK 100,000 or more, or where the economic operator has agreed on a repayment scheme with the collection authority and that scheme is observed. 7.6.3 Insolvency, conflicts of interests or professional misconduct (ESPD Part III.C) On the Exclusion page, economic operators must fill in whether they are subject to grounds for exclusion. Economic operators are excluded from participating in the procedure if they are subject to sections 136(1) and 136(2), or have been subject to the following incidents or action in accordance with sections 136(3) and 137(1)(1-6) of the Public Procurement Act within the last 2 years from the date of the relevant incident or action: Breaching of obligations in the field of environmental law, cf. section 137(1)(1) Breaching of obligations in the field of social law, cf. section 137(1)(1) Breaching of obligations in the fields of labour law, cf. section 137(1)(1) Bankruptcy, cf. section 137(1)(2) Insolvency, cf. section 137(1)(2) Arrangement with creditors, cf. section 137(1)(2) Analogous situation like bankruptcy under national law, cf. section 137(1)(2) Assets being administered by liquidator, cf. section 137(1)(2) Business activities are suspended, cf. section 137(1)(2)

16/27 Guilty of grave professional misconduct, cf. section 137(1)(3) Agreements with other economic operators aimed at distorting competition, cf. section 137(1)(4) Conflict of interest due to its participation in the procurement procedure, cf. section 136(1) Direct or indirect involvement in the preparation of this procurement procedure, cf. section 136(2) Early termination, damages or other comparable sanctions, cf. section 137(5) Guilty of misinterpretation, withheld information, unable to provide required documents and obtained confidential information of this procedure, cf. sections 136(3) and 137(1)(6) 7.7 Economic and financial standing (ESPD Part IV.B) On the Selection page, economic operators must fill in all the relevant fields regarding economic and financial standing. Economic operators are required to fulfil both the following minimum requirements: Average yearly turnover of minimum DKK 50,000,000 in the last 2 financial years available Equity of minimum DKK 10,000,000 in the last financial year available (stated in the field Financial ratio ) 7.8 Technical and professional ability (ESPD Part IV.C) On the Selection page, economic operators must fill in all the relevant fields regarding technical and professional ability: In the field Description, the economic operators must describe the performed service, including i) how it compares to the object of this procurement and ii) its innovative elements In the field Amount, the economic operators must state the total contract value of the performed service In the field Start date, the economic operator must state the date of the beginning of performance of the service contract In the field End date, the economic operator must state the date of expiry of the service contract In the field Recipients, the economic operators must state the name of the public or private recipients of the service

17/27 Economic operators are required to fulfil one of the following minimum requirements: Performance of minimum 1 service within the fields of innovative solutions regarding waste carried out within the last 3 years Performance of minimum 1 service within the fields of reprocessing of plastic waste and sale of reprocessed plastic carried out within the last 3 years Performance of minimum 1 service within the fields of sorting and separation of waste carried out within the last 3 years Performance of minimum 1 service within the fields of manufacturing of products from reprocessed plastic carried out within the last 3 years 7.9 Selection (ESPD part V) CLEAN will select the economic operators on the basis of the information provided by the economic operators concerning economic and financial standing, cf. section 7.7, and technical and professional ability, cf. section 7.8. As part of the selection, CLEAN will specifically emphasise the following objective and non-discriminatory criteria in relation to the selection: The proven technical and professional ability of the economic operators in the fields of innovative solutions regarding sorting and separation of waste The proven technical and professional ability of the economic operators in the fields of reprocessing of plastic waste and sale of reprocessed plastic That the economic operators consists of groups of economic operators or relies on the capacity of other entities from the entire value chain (industry, retail and waste management) On the Finish page, economic operators may answer Yes and provide a further description of how the performed services, cf. section 7.8, meet the objective and non-discriminatory criteria for selection in relation to the performance of the contract. CLEAN will select 4 economic operators to participate in the dialogue. 7.10 Concluding statements (ESPD Part VI) and Export On the Finish page, economic operators must state the date and place of filling in the ESPD.

18/27 Finally, economic operators must print and sign an original of the ESPD Response and also export an electronic ESPD Response (XML file). 7.11 Documentation Due to the extensive dialogue procedure and in accordance with section 151(2) of the Public Procurement Act, the economic operators who CLEAN intend to invite to participate in the dialogue must present documentation of the information provided in the ESPD Response. Economic operators are therefore encouraged to prepare the necessary documentation in order to be able to present the documentation soon after the time limit for receipt of requests to participate. The economic operator must present documentation of not being subject to the grounds for exclusion, cf. section 7.6, in accordance with section 152 of the Public Procurement Act. Economic operators from Denmark can use the Declaration of Service ( Serviceattest ) issued by the Danish Commerce and Companies Agency ( Erhvervs- og Selskabsstyrelsen ) as documentation relating to grounds for exclusion. Economic operators from other countries must present other means of documentation relating to grounds for exclusion. With regard to foreign members of the board, management or supervisory committee of the economic operator, the economic operator must present extracts of the criminal register in the relevant country. Moreover, economic operators must also present declarations from the relevant foreign members of the board, management or supervisory committee of the economic operators stating that they have not been convicted by final judgement or fined within the last 4 years for the criminal convictions stipulated in section 7.6.1. With regard to such declaration and other documents relating to grounds for exclusion, CLEAN can only accept the following types of documentation (in order of priority): Extracts from the relevant register or similar documents or certificates issued by a competent judicial or administrative authority If the country in question does not issue such extracts, documents or certificates, or if the extracts, documents or certificates do not cover all the cases, the economic operators can instead submit statements provided on oath

19/27 If statements on oath are not provided for in the relevant country, the economic operators can instead submit solemn declarations made before a competent judicial or administrative authority, a notary or a competent professional organisation in the country in which the company is registered Thus, CLEAN cannot accept self-declarations or similar declarations with regard to documents relating to grounds for exclusion. The economic operator must present either annual reports or excerpts hereof or relevant statements from a bank or certified accountant as documentation of the economic and financial standing, cf. section 7.7. The economic operator must present a list of the main deliveries of services carried out within the last 3 years stating amount and time and the public or private recipient, including contact information, as documentation of the technical and professional ability, cf. section 7.8. Economic operators can use the European Commission s e-certis service to identify the relevant documentation provided for procurement procedures: https://ec.europa.eu/growth/tools-databases/ecertis/ If an economic operator is based on the economic and financial standing or technical and professional ability of other entities, cf. section 7.5, the economic operator must also provide statements of support or other documentation proving that the economic operator has access to the necessary economic and financial standing or technical and professional ability. The statement of support must provide documentation of the fact that the entity referred to has a legal obligation to the economic operator. 7.12 Invitation to participate in the dialogue CLEAN will invite the relevant economic operators simultaneously and in writing to participate in the dialogue when they have provided the necessary documentation. 8. Dialogue 8.1 Purpose Only economic operators which receive an invitation, cf. section 7.12, may participate in the dialogue.

20/27 CLEAN will initiate dialogue with the selected economic operators in order to determine how the needs of the Contracting Authorities can be fulfilled. The dialogue can include suggestions and solutions from both the economic operators as well as from the Contracting Authorities in order to innovate the traditional methods of operation and improve the sorting and reprocessing of plastic waste. The dialogue may relate to all aspects of the procurement documents. However, they may not result in material changes, including changes to minimum requirements and award criteria. 8.2 Individual dialogue meetings CLEAN will conduct the dialogue in individual and parallel dialogue meetings with the economic operators. Representatives from the City of Copenhagen and other Contracting Authorities will participate in the dialogue meetings along with CLEAN. The dialogue can be conducted in Danish or English depending on the preference of the economic operator. Prior to each round of dialogue meetings, the economic operators must send a consultation paper with specific and thorough input for the upcoming dialogue meeting. CLEAN may continue the dialogue and conduct additional dialogue meetings until CLEAN has identified the solution(s) best suited to fulfil the needs of the Contracting Authorities. 8.2.1 Dialogue meeting 1: Prerequisites and possible solution(s) The purpose of dialogue meeting 1 is for the economic operators to present the necessary prerequisites related to the successful performance of the contract, including key performance indicators in relation to the technical specifications and the legal and financial elements. Furthermore, the economic operators are expected to present their recommendations for possible solutions. Before dialogue meeting 1, the economic operators must submit a consultation paper with the following: Key performance indicators in relation to the technical specifications, including:

21/27 Input of plastic waste and of mixed plastic and metal waste (origin, packaging, purity and intermixed waste) Source separation technologies and operations (separation of fractions and separation of polymers) Treatment options for different fractions and polymers Targets concerning quantity and quality of reprocessed plastic Limitation of energy recovery and residue material Supervision, traceability and quality control from input of plastic waste to output of reprocessed plastic Environmental impact and work environment Key performance indicators in relation to the legal and financial elements, including: Contract period Transport of plastic waste Innovation during the contract period Guarantees Payment structure Financial incentives related to performance Possibilities of treating plastic waste which is not included in the procurement procedure in combination with the plastic waste included in the procurement procedure Presentation and recommendations for possible solutions, including: Need for establishment of a new plastic sorting and reprocessing facility and possible locations Possible manufacturing of products on the basis of the reprocessed plastic from the plastic waste The estimated time limit for receipt of the consultation paper for dialogue meeting 1 is in week 23 of 2017. The dialogue meetings are scheduled to take place in Copenhagen in week 25 of 2017. 8.2.2 Dialogue meeting 2: Review of procurement documents and proposed solution(s) Before dialogue meeting 2, CLEAN will simultaneously send the economic operators a revised version of the technical specifications and the draft contract, an agenda for the dialogue meeting, the specific details to be discussed, the required deliveries of the economic operator and the time, place and duration of the dialogue meeting.

22/27 The purpose of dialogue meeting 2 is to discuss the revised technical specifications and the revised draft contract in order for CLEAN to define the provisions with sufficient detail and with positive incentives without unnecessary burdens and cost drivers. Furthermore, the purpose of dialogue meeting 2 is also to ensure that there are no provisions in the procurement documents which have the effect that the economic operators are unable to submit final tenders without provisos. The estimated time limit for receipt of the consultation paper for dialogue meeting 2 is in week 38 of 2017. The dialogue meetings are scheduled to take place in Copenhagen in week 40 of 2017. 8.3 Amendments Where amendments are made to the procurement documents as a result of the dialogue, all participating economic operators will be informed of such amendments simultaneously. 8.4 Documentation CLEAN will document the dialogue and if necessary circulate relevant, general information to all participating economic operators after each round of dialogue meetings. CLEAN will also send minutes from the dialogue meeting to the relevant economic operators with feedback regarding the proposed solution or solutions. The minutes will be treated as confidential information and will naturally not be disclosed to other economic operators. 8.5 Reduction of the number of solutions during dialogue CLEAN will not limit the number of solutions during the dialogue. 8.6 Closing of dialogue CLEAN will simultaneously and in writing declare the dialogue closed and invite the participating economic operators to submit their final tenders on the basis of the revised procurement documents.

23/27 The revised procurement documents will be sent simultaneously to the participating economic operators. 9. Final tender 9.1 Contents of final tenders Final tenders must include: 1 signed original 5 printed copies 1 electronic copy (PDF file) on a USB memory stick The required documents and information will be specified in the revised procurement documents. 9.2 Estimated time limit for receipt of final tenders Date: 23 February 2018 Local time: 12:00 The exact time limit for receipt of final tenders will be specified in the revised procurement documents. 9.3 Minimum time frame during which the tenderer must maintain the tender The final tenders must be valid until 6 months from the date stated for receipt of the final tender. 9.4 Conditions for opening of tenders The final tenders will not be opened until after expiry of the time limit for receipt of final tenders. Economic operators will not be entitled to attend the opening of the final tenders. 9.5 Clarification of final tenders In accordance with section 71(3) of the Public Procurement Act, the final tenders may be clarified, specified and optimised at the request of CLEAN. However, this may not involve changes to essential aspects of the procurement procedure or the tender or distort competition or otherwise have a discriminatory effect.

24/27 10. Award of contract 10.1 Award criteria The contract will be awarded based on the award criterion best price quality ratio on the basis of the following sub-criteria: Costs (30-50%) Quality (30-50%) Legal and financial elements (10-30%) 10.2 Evaluation of costs CLEAN will evaluate the final tenders in relation to the sub-criterion costs based on the total price based on the estimated quantities of plastic waste. 10.3 Evaluation of qualitative sub-criteria 10.3.1 Point scale for qualitative sub-criteria CLEAN will award a number of points for the qualitative sub-criteria on an scale from 0 to 10 where 0 is the lowest possible score and 10 is the highest possible score. CLEAN will award points individually on the basis of an assessment of the degree of fulfilment of each sub-criterion. It is therefore possible that no final tender will be awarded maximum points, just as 2 or more final tenders may be awarded the same number of points for a sub-criterion. 10.3.2 Evaluation of quality In relation to the sub-criterion quality, CLEAN will attach special importance to that the plastic waste is sorted and separated into individual polymers in a quality that can be reused or recycled and thereby replace the use of virgin plastic. In addition, CLEAN will also attach special importance to the rate (quantity) of the plastic waste that is prepared for reuse or recycled instead of other means of recovery operations, including energy recovery. CLEAN will also attach special importance to that the economic operator will ensure a high level of transparency through the entire process and supply-chain by

25/27 effective means for quality control, traceability in the waste stream, supervision and audits. Finally, CLEAN will also emphasise that there is a safe and healthy work environment where manual handling of waste materials is minimised and the proportion of equipment to be used that is powered by energy from renewable sources in accordance with Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. 10.3.3 Evaluation of legal and financial elements In relation to the sub-criterion legal and financial elements, CLEAN will attach special importance to that the economic operator will assume obligations to invest in innovation and implementing new technology or methods of operation during the contract period in order to improve the performance and the overall environmental outcome. In addition, CLEAN will attach special importance to that the contractual obligations of the Contracting Authorities are minimised and that the economic operator offers to reduce the prices for the treatment of plastic waste during the contract period. CLEAN will also emphasise that the economic operator offers an organisation with simple and direct lines of communication with the Contracting Authorities and where the key persons have the necessary educational and professional qualifications. In addition, CLEAN will also emphasise that the average distance of transport of plastic waste (based on the quantities and addresses in Appendix 2:) from the Contracting Authorities to the economic operator s treatment facility is minimised. Finally, CLEAN will emphasise that the economic operator offers a high level of flexibility in the ways that the Contracting Authorities can deliver the plastic waste. 10.4 Combination of costs and qualitative sub-criteria For the combination of costs and qualitative sub-criteria, CLEAN will use a calculation model where the awarded points for the qualitative sub-criteria are converted into costs supplements on the basis of the average costs of the received final tenders.

26/27 Afterwards, the costs and the costs supplements of each final tender are added up to a total evaluation price. The costs supplements and the total evaluation price are calculated figures for the use of the evaluation alone. The average costs is the mean value of the costs in the received final tenders. The costs supplements of each qualitative sub-criterion is calculated using the following: Costs supplements = Average costs / 10 * (10 awarded points for the qualitative sub-criteria) * Weight of qualitative sub-criteria The total evaluation price is calculated using the following: Total evaluation price = (Costs * Weight of costs) + Costs supplements 1 + Costs supplements 2 + [ ] The final tender with the lowest total evaluation price is deemed as having the best price quality ratio. 10.5 Documentation Before CLEAN decides to award the contract, the tenderer to which CLEAN intends to award the contract must present any updated or otherwise necessary documentation of the information provided before selection, cf. section 7.11. The economic operator must also present documentation that no identified subcontractor in the final tender is subject to the grounds for exclusion, cf. section 7.6, in accordance with section 152 of the Public Procurement Act. 10.6 Information regarding award of contract CLEAN will inform all economic operators involved simultaneously and in writing of the decisions made regarding award of contract. Information to the winning economic operator will not necessarily result in the conclusion of contracts and such information does therefore not entail a promise to enter into contracts.

27/27 The Contracting Authorities may not conclude contracts until after the expiry of the standstill period under section 3 of the Act on the Danish Complaints Board for Public Procurement, at the earliest. 10.7 Finalising of contract In accordance with section 72(2) of the Public Procurement Act, CLEAN may carry out negotiations with the economic operator which submitted the winning tender. Negotiation will take place with a view to confirming the financial duties or other terms of the tender, including determining the Contracting Authorities who will conclude contracts with the economic operator. Negotiations may not result in material changes, including minimum requirements and award criteria. The economic operator will be entitled to withdraw the final tender if the total expected quantity of plastic waste is less than 12,000 tonnes per year.