COMMITTEE REPORT ON TURNKEY SOLID WASTE MANAGEMENT SOLUTION FOR LAGOS STATE 1.0 Introduction: The Committee reviewing the proposal from Messrs. Visionscape Sanitation Solutions and their international partners received its mandate following the presentation to the State Executive Council (EXCO) on Wednesday, 3" March 2016. At that EXCO Meeting, it was approved that an inter-ministerial committee headed by the Commissioner for Environment and comprising the Honorable Commissioners for Finance, Local Governments, Employment and Wealth Creation and the Special Adviser to the Governor on Environment be constituted to evaluate the proposed solution and its full ramifications before reverting to the State Executive Council. The proposal was based on the need to make Lagos State a cleaner, healthier and more aesthetically pleasing city. Lagos with its growing population and limited land mass currently plays host to over 20million residents. Its ever-increasing population is expected to make it one of the largest megacities in the world by Y2050 (UN Habitat). The various environmental challenges pressure and burden that this situation puts on the city seem daunting in the face of a general economic slowdown and recent health endemics like the Lassa Fever, the Zika virus outbreak and shows that there is an urgent need for an efficient, effective and lasting Solid Waste Management solution for the State.The Status Quo The Lagos State Ministry of Environment is vested with the responsibility of maintaining a disease-free environment for its citizens, as such it should ensure proper solid waste collection and transport, and all the waste collected from households and other establishments should be emptied and disposed of through a socially and environmental ly acceptable practice because failures in this critical area will inevitably lead to public health hazards. It is a known fact that the Lagos State Waste Management Authority (LAWMA) is il- equipped to properly manage solid waste in the State. The deficit in assets on the part of LAWMA has found the agency in a position where its operational responsibilities have had to be carried out by the PSP Operators who in turn are not adequately resourced to manage the task. Efficient collection and transport of solid waste will provide citizens with a clean environment in which communicable diseases will be greatly reduced. The successful colection and transport of waste material, not only depends on the efficient operation of LAWMA and the operators, but also on the active involvement of citizens. The public must cooperate with the Operators as well as LAWMA but they in turn must provide an efficient service, with a particular focus on collecting waste on time and according to schedule. The Operators and the regulator (LAWMA) should also be on hand to listen to the public for their ideas, respond to their requests and follow-up to resolve any complaints. This is not currently happening and is an essential ingredient for the success of any Solid waste management strategy- Through its enforcement unit (KAI), the Ministry can utilize the simple and proven logic that when an environment is clean, people are discouraged from indiscriminate dumping of refuse and litter. As this is still not applicable to Lagos State due to policy and operational limitations that curb their activities as an enforcing unit, role of KAI will need to be invigorated in order to make the initiative a success.2.0 The Case for an Overhaul of the State's Solid Waste Management System Over time. the water, air and physical environment in Lagos State have been affected due to poor solid waste management practices. The contaminants with the solid waste including leachate from our dumpsites pollute our water table as well as the water bodies causing health problems and so does the illegal buming of solid waste. All these threaten the sustainability of the environment. Improper solid waste management, not only threatens the bio diversity of the water bodies, and beaches but also destroys the scenic beauty of the environment. Organic waste biodegrades quickly and releases toxic and unpleasant odours. The discharge of organic waste attracts flies, rats and other pests. These vectors spread diseases such as typhoid and cholera, and can also cause diarrhea, eye problems, skin diseases etc. Improper disposal of solid" waste leads to blocked drains, an increase in contaminated water bodies, an increase in the mosquito population and more diseases. All these will affect the health of the public by reducing life expectancy and increasing infant mortality- It's been proven that Cleaner cities are better able to attract private sector investment and tourists, and thus create more jobs. The inflow of investments brings economic prosperity and more revenue to the State as such it could be said that better SWM through improved waste collection facilitates economic development. It is noteworthy also that an improvement in waste management is a very visible benchmark for good governance. Regular collections done with well-maintained vehicles with trained uniformed personnel will go a long way to showing the citizenry and hence, the voting public, that the government is working.The needs of different stakeholders and constraints experienced by the service provider, are deciding factors in setting goals. In order to adequately assess the needs of different stakeholders in the solid waste management value chain, this committee has considered the needs from the citizen's perspective. Issues touching on convenience, abatement of litter and accumulated waste were considered extensively and we went further by carrying out consultations with citizen groups such as Market Women Associations, Traders Associations, Community Based Organizations, as well as the Local government counc 's. Constraints The constraints that have we identified are largely centered around funding and organizational knowledge gaps and we have deemed it prudent to identify these constraints and incorporate them into the decision making process. Goals Using citizen participatory methods of consultation, we have clearly defined practical. achievable and measurable goals for the solid waste management in the State, and the Ministry of Environment will be periodically reviewing the system's performance in meeting identified goals, and regularly review and adjust the system's goals to meet changes in citizens' needs. The focus of the system overhauls will be to achieve ground - breaking and visible improvements immediately which will also include short and longer - term capability development fusing technology. personnel, management systems and equipment across the value chain into a coherent strategy and executable plans. This will be implemented under the authority of Lagos State Ministry of Environment using (LAWMA) as its policy-making and regulatory arm while KAI plays a role as an enforcement unit.It is our opinion that the new law as reviewed will encourage and promote private sector investment in the entire waste management value chain. More so, it will create an independent, self-reliant and transparent waste management framework for the state and participants as well as taking care of the less privileged through a deliberate subsidy regime and job creation. DEFINING THE GENERAL CONCEPT OF OPERATIONS To effectively plan the States' solid waste management, the entire gamut of operations would have to under go administrative, operational and functional adjustments for better results. The adjustments are to be far reaching as such a high level of detail encompassed in the following variables were considered: * Number of residential dwelling units and housing densities. * Number of commercial establishments by type (restaurants, markets, etc.). Number of government/ institutional buildings by type (schools, hospitals, etc.). Kilometers, width and condition of streets and roads, including primary. secondary and unimproved roads. Traffic patterns and transportation infrastructure. * Landfil suitability and assessment. On the basis of these findings and other considerations, this Committee recommends the Solid Waste management Concept of Operations be delineated along these lines. The recommendations are as follows:Commercial AI LAWMA Deregulated market Building-to- Waste Approved open to approved Zonal building. Collections Operators" Operators. Operators to be assigned into zones to allow Statewide coverage. current PSP Segregated into 5 operators to be zones. ( BILE) recertified and approved. Regulated by LAWMA (as required) Medical Waste Approved Deregulated market Site pickup in Day, every Collections Medical Waste open to approved Zonal |Containers other day. Disposal Operators. Operators to provided by Operators be assigned into zones medical waste to allow Statewide service coverage. provider. Segregated into 5 Delivery by zones. (BILE) producer to Regulated by LAWMA waste Medical Waste treatment operators. Regulated by Facility. LAWMA Disinfection, sterilization. autodaving. incinerateon Construction All LAWMA Deregulated market On-site pick Collections Approved open to approved Zonal up regional (as required) Operators / PSP Operators. Operators to | collection be assigned into zonesstandards. LAWMA" Epe II (Proposed) Large scale Concession granted Establishment of a new Operator(s) that by Lagos State Sanitary landfill to meet stipulated Ministry of replace Olusosun as minimum Environment. the primary landfill operating Regulated by location. standards. LAWMA" Ikorodu (Proposed) A Large scale Concession granted Establishment of a new Operator (s) that by Lagos State Sanitary Landfill to meet stipulated Ministry of replace Olusosun as minimum Environment. the primary landfill operating Regulated by location. standards. LAWMA" Transfer Loading Station Operations SERVICE AREA RESPONSIBLE NATURE OF SCOPE OF WORK PARTIES ARRANGEMENT Simpson TLS A Large scale Concession granted Repurpose , modernize Operator (s) that by Lagos State and upgrade of the meet stipulated Ministry of facility for improved minimum Environment. collection turn around. operating Regulated by standards. LAWMA"Landfill Management & Operations SERVICE AREA RESPONSIBLE NATURE OF SCOPE OF WORK PARTIES ARRANGEMENT Olusosun Land Fill Large scale Concession granted Repurposive and Operator(s) that by Lagos State phased closure of the meet stipulated Ministry of land fill site minimum Environment. operating Regulated by standards. LAWMA" Solous I & II Medium scale Concession granted Operator(s) that by Lagos State meet stipulated Ministry minimum operating Environment. Repurposing and standards. Regulated expansion of current LAWMA" MRF facility. Epe Land Fill Large scale Concession grantedRe-assesment 01 Operator(s) that Lagos State Suitability of the site. To meet stipulated Ministry ofbe upgraded to an minimum Environment. Engineered Sanitary operating Regulated bylandfill will need to be standards. LAWMA" revisited Ewu Elepe Large scale Concession granted Upgrade to an Operator(s) that Lagos State Engineered Sanitary meet stipulated Ministry of landfill over time minimum Environment. operating Regulated byAgege TLS Large scale Concession granted Operator (s) that by Lagos State meet stipulated Ministry minimum Environment. Restart and upgrade of operating Regulated bythe facility for improved standards. LAWMA" collection tum around. Oshod TUS Large Concession granted Restart and upgrade of Operator (s) that by Lagos State the facility for improved meet stipulated Ministry of collection turn around. minimum Environment. operating Regulated by standards. LAWMA" Ogombo (proposed) Large scale Concession granted Establishment of a new TLS Operator (s) that by Lagos State Refuse Transfer Station meet stipulated Ministry of for improved collection minimum Environment. turn around. operating Regulated by standards. LAWMA" Ojo (proposed) TLS A Large scale Concession granted Establishment of a new Operator that by Lagos State Refuse Transfer Station meet stipulated Ministry of for improved collection minimum Environment. turn around. operating Regulated by standards. LAWMA" Depot OperationsSERVICE AREA RESPONSIBLE NATURE OF SCOPE OF WORK PARTIES ARRANGEMENT Simpson Depot A Large scale Concession granted Repurpose , modernize Operator (s) that by Lagos State and upgrade of the meet stipulated Ministry of facility for improved minimum Environment. collection turn around. operating Regulated by standards. LAWMA" Ogudu Depot Large scale Concession granted Operator (s) that by Lagos State meet stipulated Ministry minimum Environment. Restart and upgrade of operating Regulated bythe facility for improved standards. LAWMA" collection tum around. Mushin Depot Large scale Concession granted Restart and upgrade of Operator (s) that by Lagos State the facility for improved meet stipulated Ministry of collection turn around. minimum Environment. operating Regulated by standards. LAWMA" FUNDING THE INITIAIVEResidential and Street Collections are to be handled by contracted parties, while Commercial and Industrial waste generators will be required to engage directly with approved Waste Collections Companies on a standard contractual basis (regulated by LAWMA) for the following reasons: . The special handling required for the type of waste typically generated by a business The quantity of waste generated by commercial entities . The role of the corporate citizen and her responsibility to subsidize the poorer sector of society . The complimentary RFID- enabled waste bins that will be supplied to each user THE PROPOSED RATES FOR THE PUBLIC UTILITY LEVY (PUL) ARE AS FOLLOWS; Public Utilities Levy o Property occupying less than 500 Square metres - (N800 Per Month) Property occupying more than 500 Square metres - (N8000 Per Month) The modalities of billing, revenue assurance, and enforcement of the new Levy will be vested in a new unit: "Public Unlives Monitoring and Assurance Unit" (PUMAU) under the Ministry of Environment for better co-ordination, control and accountability.Street Large scale Street Sweeping Manual. 3 Daily Sweeping: Operator(s) that contract segregated bystreets, primary Residential, meet stipulated Wards awarded byand Secondary Major Public minimum Lagos State (Ministry ofstreets, litter Highways and operating Environment). baskets. Commercial standards. Regulated by LAWMA Areas Secondary Large scale Drainage Management Mechanical, Al year round. and Tertiary (Operator(s) that Contract awarded byManual, all Drains and meet stipulated Lagos State Ministry oftertiary and Canals minimum Environment Secondary operating segregated into the 5drains. standards. zones Regulated by LAWMA Marine Large scale Waterways cleaningMechanical Daily Operator(s) that contract awarded byand manual, meet stipulated Lagos State (Ministry clearance minimum of Environment ) debris and operating Regulated by refuse in the standards. water ways. LAWMA."This Committee carried out extensive studies of the funding mechanisms generally used for financing Municipal Solid Waste Management in cities across the world. The folowing methods identified were: (a) Taxes and levies (b) End User charges / Fees (c) Grants & Loans (d) Fines & Penalties (e) Budgetary Provisions There are different standards of service associated with quality, quantity and customer convenience issues, and it is our view that the service standards under the proposed Concept of Operations represents a modem and progressive solid Waste management strategy. However, the solution comes with attendant costs that the State would need to consider carefully to ensure the sustainability of the initiative. Of the methods mentioned above, the Taxes and Levies as funding platforms seem most ideal given global trends and best practices, and extensive work carried out on the modalities of achieving effective collection of tariffs. The proposed PUBLIC UTILITY LEVY will be a fee billed annually and payable by all property across the State. This levy would shore up the sanitation budget and immediately address the chronic funding gaps that continue to plague the City's solid waste management plans. The proposed Public Utility Fee (PUL) would result in the cessation of the payment of all service fees currently being paid by Commercial Industrial Medical Residential and Household users to the LAWMA / PSP operator's and the income from proposed fees will would be used to fund a the outsourced and contracted services along with other public utility services.PUBLIC UTILITIES MONITORING UNIT (PUMAU) The Public Utilities Monitoring and Assurance Unit (PUMAU) will be responsible for all aspects of billing for waste collection services across Lagos State. The PUMAU will be structured and implemented to address the following challenges that LAWMA currently faces today: Bill Generation Inaccuracies Bill Delivery Lapses Billing Activity Monitoring and Tracking Payment Collection and Revenue Leakages Lack of Delinquency Enforcement The PUMAU will be made up of personnel from different organizations (government and private sector) working in tandem to accomplish the goals set by these initiatives. These personnel include but are not limited to the following: Ministry of Environment Staff Kick Against Indiscipline (KAI) Officers Private Sector Contractors Structurally, the PUMAU will be organized by the following sections: Enumeration Business Analysis Bill Monitoring & Quality Assurance/Quality Control Field Quality Assurance Quality Control Bill Dispatch & Delivery Customer Service/Contact CentreCOVERED COMMUNAL SKIP - 50 % UNITS OF CEM STEEL COMMUNAL (RO. RO) BINS TOTAL 10 ICOMPOSAL 85,200 3.008 PHASE I VEHICLES OPERATIONAL SITE BING JOBS FACILITIES CREATED VEHICULAR OPERATIONAL DISPOSAL BINS & WASTE JOBS AUBETH FACILITIES HTES RECEPTACLESTo enable this unit to reach its goals and be successful in its mission, an Integrated Waste Management & e-Billing Workflow Solution (WMS) that integrates features. technologies and processes that are key to waste collection operations and revenue collections will be built and deployed to support the PUMAU. Therefore, it is this Committees' rationale that the funding of the major service segments ought to be delineated along the lines of their funding as seen in the table below. EMPLOYMENT & JOB CREATION The size and scope of the initiative is such that a significant amount of human resources are required to deliver the required results. The committee has reviewed the potential job creation potentials taking into consideration the associated industries (such as bin manufacturers) that will likely emerge as a fall out of this initiative and the multiplier effect on the job market cannot be overlooked. It is therefore our recommendation that this multiplier effect be further catalyzed with the establishment of a Vocational Skills Acquisition Unit specific to the waste management industry at Lagos State Vocational & Technical Education Board (LASVEB). The core areas of focus on this would be Welding and Fabrication Sheet metal works, and plastics processing. This would be driven by the Ministry of Environment in collaboration with the Ministry of Employment and Wealth Creation and LASVER.Their proposal covers the entire solid waste management spectrum from collection to vehicle maintenance to disposal, and open the First Engineered Hazardous Sanitary Landfill in the West African Region. The highlights of the assets and facilities to be utilized in executing the deliverables over the duration of the proposed Five (5) year renewable term contract can be seen below. VEHICULAR OPERATIONAL DISPOSAL BING & WASTE JOBS ASSETS FACILITIES RECEPTACLES ROLL OUT - 75 X 8 CAM - 1 X NEWLY 25 000 X 240 PHASE I COMPACTORS LITRE (RFID) DIRECT TRUCKS - 1 X NEWLY CONSTRUCT SCHAFER TAXABLE Month Q- ED WHEEL BINS Month 18 - 75 X 18 CBM CONSTRUCTED COMPACTORS MATERIALS ENCNEERED 10,000 X TRUCKS RECYCLING SANITARY UNIT& OF FACILITY. LANDFILL 380 LITRE - 75 X 24 CBM (TO (RFID) COMPACTORE INCLUDE SCHAFER TRUCKS TRANSFER METHANE WHEEL BING - 25 X SKIP LOADNO 5,000 X UNITS LOADERS STATIONS INDEPENDEN OF VEHICLES T 7TO LITRE and Simpson to POWER [RFID) -EX PLANT SCHAFER BINWASHERS and fi- CIPP) WHEEL i quipp al BING - 15 X ROLL ON- ROLL OFF - 15,000 X MAINTENANCE TRUCKS DEPOTS UNIT& OF 1 100 LITRE 10gudu 10 X BULK Simpson, (RFO) LOADERS (70 Mushin BCHAFER WHEEL TRAILER - 50 % - 5000 X UNITE CARRACE - 1 X NEWLY OF TRICYCLES 3200 LITRE CONSTRUCTED - 150X METAL GENERAL MAINTENANCE BCHAFER DEPOTS. WHEEL UTILITY HEAVY EQUIPMENT and 2 X NEWLY SUPPORT 5,000 X UNITS CONSTRUCTED OF VEHICLES TRUCK STREET Hiuk, Busts, FUELING LICHT- Usity Vans ) STATIONS MOUNTED LITTER BING - 150 X UNITS OF 5 CBM STEEL50 X 8 COM - 1 X NEWLY - 1 X NEWLY 20,000 UNITS 2000+ DIRECT ROLL OUT COMPACTORS OF TAXABLE PHASE TRUCK'S CONSTRUCTED CONSTRUCT 240 LITRE TRANSFER ED (RFID) 50 X 18 CBM LOADING &CHAFFER STATION HAR ZAD OUB WHEEL BINS COMPACTORS WASTE TRUCKS LANDFILL 5,000 UNITS OF - 25 X 24 COM 1A NEWLY 1 100 LITRE COMPACTORS CONSTRUCTED SCHAFFER TRUCKS FUEL FILLING WHEEL STATION BING - 15 X 8KIP -1X 10 000 UNITE LOADERS MAINTENANCE OF VEHICLES DEPOTS STEEL 5 X ROLL ON- Ogudu STREET Simpson, ROLL OFF LIGHT- Mushin TRUCKS MOUNTED In ba rrirolled LITTER BING and - 5X BULK LOADERS70 - 5 040 UNITS OF TRAILER GALVANISED STEEL 1100 LITRE - 50% STREET BING CARRACE TRICYCLES SO UNITS OF - 50% GENERAL CBM STEEL UTILITY COMMUNAL SUPPORT VEHICLES BING Hilux, Buses, - 30 UNITS OF 20 CBM STEEL COMMLINAL RO- RO] BING TOTAL 2:50 1 2.008 PHASE I TRUCKS OPERATIONAL DISPOSAL COLLECTION JOBS FACILITIES SITE RECEPTACLES CREATED VEHICULAR OPERATIONAL DISPOSAL BING & WASTE JOBS ASSETS FACILITIES BITES REGEPTACLESEXECUTION OF THE INITIATIVE: SCOPE AND DELIVERABLES TURNKEY RESIDENTIAL. HIGHWAY & STREET COLLECTIONS, PROCESSING AND DISPOSAL CONTRACT The residential and Highway collections, processing and disposal contract being proposed is expected to revolutionize the Solid Waste management in the State through an immediate and direct injection of approximately N102 billion (One Hundred and Two Billion Naira only) in capital to be deployed into collection vehicles, bins and other solid waste management infrastructure. The Ministry together with a team of independent consultants and the project promoters camied out a detailed scoping study over a four (4) month period to determine the assets required to effectively execute this critical aspect of the initiative. The outcome of the scoping study was a detailed turnkey proposal by Messis VISIONSCAPE SANITATION SOLUTIONS (a joint venture consortium comprising of the following companies: * Interwaste (South Africa) * Averda (UAE / UK / Lebanon) CSH Environmental (UK) Antony Waste Handling Cell (India) * Iron Products Industries Limited . Hyva International (Netherlands) . Westar Associates Limited (Mercedes Nigeria dealer) . Schafer Bins GmbH (Germany)ROLL OUT PHASE I - 25 X & CAU - 1 % NEWLY - 5,000 UNITS - 1,000+ COMPACTORS OF DIRECT TRUCKS CONSTRUCTED 240 LITRE TAXABLE TRANSFER (RFID) JOBS - 25 X 19 CBM LOADING SCHAFFER STATION WHEEL BING COMPACTORS TRUCKS 5,000 UNITS OF - 1% 1100 LITRE - 10 X SKIP MAINTENANCE IRFID LOADERS DEPOTS SCHAFFER VEHICLES WHEEL - 5 X ROLL ON- ROLL OFF TRUCKS - 5,000 UNITS OF - 5 X BULK STEEL LOADERS 70 STREET CAM ) LIGHT- TRAILER MOUNTED LITTER BING - 1,000 UNITS OF GALVANISED STEEL 1100 LITRE STREET BINS 50 UNITS OF 5 CBM STEEL COMMUNAL 8KIP BN& - 30 UNITS OF CEM STEEL COMMUNAL IRO. RO) BINS TOTAL TO TRUCKS 2 OPERATIONAL 1 DISPOSAL 18, OTO BINS 1,006 JOBS PHASE I FACILITIES HITE CREATED ORAND 110,350 6,000+ JOBS TOTAL VEHICULAR OPERATING DISPOSAL BINS CREATED ABBETH FACILITIES BITESCOSTS All payments for SERVICES conducted under this AGREEMENT will be made by the LASG as follows: Mobilization NGN 35,550,000,000 = (Thirty Guaranteed minimum Payment Five Billion, Five Hundred and charge for a total of 2,7 fifty Million Naira Only). Million Tonnes (i.e. 1,500 Tonnes per day) @ a Amortized over first 38 months of discounted rate of NGN the contract 13,650 = (Thirteen Thousand Six Hundred NO87,500,000 (Nine Hundred and and Fifty Naira Only) Eighty Seven Million, Five Hundred thousand Naira Only ) Provision of Guarantee in per month - Gross. the form of an ISPO Variable NGN10,500 = (Nineteen Five Payable monthly in Charge Rate Thousand Five Hundred Naira arrears based on tonnage [per tonne) Only) . of waste colected over the 1500 MT per day minimum. Provision of Guarantee backed by IGR KEY DELIVERABLES * Efficient and regular Collection of Residential, Commercial ad Industrial Waste. Proper sanitary disposal of hazardous and medical waste. * Standardization of receptacle (bin) distribution across the state. Creation of a minimum of Four thousand (4,000) direct jobs and over Six thousand (6,000) indirect jobs.PRAYERS & RECOMMENDATIONS The proposal as enumerated above provides a clear road map to achieving the States' objective of making Lagos one of the Cleanest Megacities in the world. The proposal wil achieve immediate visible improvements in the State environs which will include a medium and longer - term capability development fusing technology. personnel, systems and equipment along with all relevant environmental stakeholders. This will be implemented under the authority of Lagos State Waste Management Authority (LAWMA): the new regulatory body in conjunction with the KAI Brigade as the enforcement body. In light of the foregoing. this Committee seeks the approval of the State Executive Council for the following . The Passage of the new Environmental Bill into Law with effect from 1 January 2017. . The adoption of the new Concept of Operations as proposed The approval for the KAI Brigade to be directly engaged in compliance and enforcement of this initiative. . The approval for the creation of an Sanitation Vocational Skills Acquisition Unit at LASVEB The approval to award the turkey residential, highway and street collections, processing and disposal contract for an initial five (5) year renewable contract to be awarded to the successful parties upon conclusion of the tender process. . The approval to issue the required guarantees in favour of the successful bidder to enable them execute the necessary financing to sustain the operations of such a massive scale given the current economic terrain