MS Legok Nangka Booklet PDF

West Java
Provincial Government
Market Sounding of
Waste to Energy PPP Project
Legok Nangka Regional Final Waste
Treatment and Processing Site
Friday, 18 October 2019

The Trans Luxury Hotel Bandung Convention Center
Supported by:
Table of Contents
Table of Contents............................................................................................................. 1
Preface ............................................................................................................................ 2
Glossary .......................................................................................................................... 3
1. Project Background, Objective, and Profile ........................................................................... 5
1.1. Background ..............................................................................................................................................5
1.2. Objectives ................................................................................................................................................5
1.3. Profile.......................................................................................................................................................6
1.4. Project Organization ................................................................................................................................6
2. Site Information and Permits ................................................................................................ 7
2.1. Site Location ............................................................................................................................................7
2.2. Water Supply ...........................................................................................................................................8
2.3. Transmission Line ....................................................................................................................................8
2.4. EIA/AMDAL and SIPPA .............................................................................................................................9
2.5. Fly Ash and Bottom Ash (FABA) treatment .............................................................................................9
3. Project Scheme .................................................................................................................. 10
3.1. Project Scope ........................................................................................................................................ 10
3.2. Contractual Structure ........................................................................................................................... 11
3.3. Commercial Structure ........................................................................................................................... 11
3.4. Revenue Stream ................................................................................................................................... 12
4. Risk Allocation and Government Support ............................................................................ 13
4.1. Risk Allocation ...................................................................................................................................... 13
4.2. Government Support ............................................................................................................................ 14
5. MSW Information............................................................................................................... 14
5.1. MSW Supply Commitment ................................................................................................................... 14
5.2. MSW Quality ......................................................................................................................................... 15
5.3. MSW Logistics ....................................................................................................................................... 15
5.4. Unsuitable Waste ................................................................................................................................. 16
6. General Technical Requirement .......................................................................................... 16
6.1. Open Technology .................................................................................................................................. 16
6.2. Output Specification ............................................................................................................................. 17
6.3. Technology Block Diagram ................................................................................................................... 19
7. Schedule ............................................................................................................................ 20
7.1. Overall Schedule ................................................................................................................................... 20
7.2. Procurement Process............................................................................................................................ 20
7.3. PQ Timeline........................................................................................................................................... 21
Appendix: Questionnaire Feedback Form ............................................................................... 22
Preface
This Market Sounding Booklet provides the information necessary to introduce the market
regarding “Legok Nangka Regional Final Waste Treatment and Processing Site PPP Project” (“the
Project”) in West Java Province.
The market sounding was conducted based on LKPP Regulation No. 29/2018 on Procurement
Procedures of Business Entities for Cooperation between the Government and Business Entities.
The market sounding is held with the purpose of 1) providing information to the market, 2)
assessing market interest, and 3) obtaining input and feedback from the potential investors on the
feasibility of the project.
The booklet provides facts and analysis regarding the project which are as follows:
• Project Background, Objective, and Profile
• Site Information and Permits
• Project Scheme
• Risk Allocation and Government Support
• MSW Information
• General Technical Requirement
• Schedule
Feedback are expected from the market as provided in the Questionnaire Feedback Form attached
to Appendix of this document.
Market Sounding Booklet 2

Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project
Glossary
Term Definition
AMDAL Environmental Impact Assessment/Analisis Mengenai Dampak Lingkungan
ANDALALIN Traffic Impact Analysis/Analisis Dampak Lalu Lintas
AP Availability Payment/Pembayaran Ketersediaan Layanan
Ministry of National Development and Planning/National Development and

BAPPENAS
Planning Agency
COD Commercial Operations Date
CP Condition Precedent
CTP Confirmation to Proceed
DED Detailed Engineering Design
DLH West Java Environment Agency/Dinas Lingkungan Hidup
DPRD Local Parliament/Dewan Perwakilan Rakyat Daerah
EIA Environmental Impact Assessment
EPC Engineering, Procurement and Construction
EU European Union
FABA Fly Ash - Bottom Ash
FBC Final Business Case/Kajian Akhir Prastudi Kelayakan
FIT Feed in Tariff
GAP Guarantee Application Package/Usulan Penjaminan (UP)
GCA Government Contracting Age
Indonesia Infrastructure Guarantee Fund/PT Penjaminan Infrastruktur

IIGF
Indonesia (PT PII)
National Public Procurement Agency/Lembaga Kebijakan Pengadaan
LKPP
Barang dan Jasa Pemerintah
MBT Mechanical Biological Treatment
MOF Ministry of Finance/Kementerian Keuangan

MOHA Ministry of Home Affairs/Kementerian Dalam Negeri
Ministry of Public Works and Housing/Kementerian Pekerjaan Umum dan

MPWH
Perumahan Rakyat
MSW Municipal Solid Waste
NGO Non-Governmental Organization/Lembaga Swadaya Masyarakat
OBC Outline Business Case/Kajian Awal Prastudi Kelayakan
Perpres Presidential Regulation
PPA Power Purchase Agreement/Perjanjian Jual Beli Listrik (PJBL)
Public Private Partnership/Kerja sama Pemerintah dan Badan Usaha

PPP
(KPBU)
PQ Pre-Qualification
PT PLN PT Perusahaan Listrik Negara (Persero)
RDF Refuse Derived Fuel
RfP Request for Proposal
Water Retrieval and Utilization Permit/Surat Izin Pengambilan dan

SIPPA
Pemanfaatan Air
SOP Standard Operating Procedure
SPC Special Purpose Company
T/L Transmission Line
TPA Final Disposal Site/Tempat Pembuangan Akhir
Final Waste Treatment and Processing Site/Tempat Pengolahan dan

TPPAS
Pemrosesan Akhir Sampah
TPS Temporary Waste Disposal/Tempat Pembuangan Sementara
UPTD Regional Waste Management Agency/Unit Pelaksana Teknis Daerah

PSTR Pengelolaan Sampah TPA/TPST Regional
VfM Value for Money
VGF Viability Gap Funding/Dukungan Kelayakan
WtE Waste to Energy

1. Project Background, Objective, and Profile
1.1. Background
The Province of West Java has a large and increasingly urbanized population. It is expected
to grow from 46 million to over 57 million by 20351. Population growth, combined with growing
per capita incomes and associated changes in consumption patterns, will result in much
greater demand for Municipal Solid Waste (MSW) management services. This will represent
a major challenge for the Province as current final disposal site at Sarimukti will not be
available beyond 2023/2024.
To address the urgent challenges associated with MSW management, the West Java
Provincial Government plans to develop the Legok Nangka Regional Final Waste Treatment
and Processing Facility through a Public Private Partnership procurement (“The Project”). The
project will provide a facility for the final treatment and processing of MSW from six
Participating Municipalities, which are Bandung City, Bandung Regency, Sumedang
Regency, Cimahi City, Garut Regency and West Bandung Regency.
The project will be implemented by West Java Provincial Government as the Government
Contracting Agency (“The GCA”) under Perpres No. 35/2018 on Acceleration of Development
of Environmentally Friendly Waste to Energy Power Plant and Perpres No. 38/2015 on
Cooperation between the Government and Business Entity. Other relevant legal basis
includes, but not limited to:
• West Java Provincial Local Government Regulation Number 12 of 2010 as
amended with West Java Provincial Local Government Regulation Number 1 of
2016 on Waste Management in West Java Province.
• BAPPENAS Regulation Number 4 of 2015 on Guidelines for the Implementation of

Public-Private Partnerships for Infrastructure Provision, and
• LKPP Regulation Number 29 of 2018 on Procurement Procedures of Business
Entities for Cooperation between the Government and Business Entities.
1.2. Objectives
The GCA has developed Project objectives that align with wider sector regulations and
specific waste management needs of the Participating Municipalities. The objectives are as
follows:
1. Build facility for the final MSW treatment and processing for the City of Bandung,
Cimahi City, Bandung Regency, West Bandung Regency, Sumedang Regency and
Garut Regency;
2. Improve the sanitation and health conditions in the Participating Municipalities;
3. Support the concept of a circular economy and implement Waste to Energy (WtE)
operations.
1 Source: Pre-Feasibiilty Study of Legok Nangka TPPAS PPP Project (2018)

1.3. Profile
The project will require facility with approximately 2,000 ton/day of processing capacity. The
project is designated as waste-to-energy model case and requires minimum 15 MW of
electricity generation capacity. It will be funded and implemented under PPP, in which the
private business entity or consortium is required to establish a Special Purpose Company
(“SPC”) for the project.
Summary of project profile can be seen in the table below:
Table/Figure 1 Project Profile
Capacity 1,853 – 2,131 ton/day
Electricity
Min. 15 MW (gross)
Generation
From 6 Municipalities
Waste Supply (Bandung City, Cimahi City, Bandung Regency, Sumedang Regency, West
Bandung Regency, Garut Regency)
Funding Scheme PPP (Build-Operate-Transfer for 20 years concession period after COD)
• Tipping Fee (IDR/ton) from West Java Province and 6 Municipalities

Revenue Source
• FIT (USD/kWh) from PLN
Procurement Open Technology PPP tender
Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019)
1.4. Project Organization

The project will be headed by West Java Governor. Regional Waste Management unit (UPTD
PSTR) is the implementing organization in charge.
For aspects of PPP tender, the project will be supported by PPP Node supervised by
BAPPEDA and Transaction Advisory Team led by Ministry of Finance. Detail of the Project
Organization can be seen in the figure below:
Table/Figure 2 Project Organization
Source: West Java Provincial Government

2. Site Information and Permits
2.1. Site Location

The site selected for Legok Nangka WtE Plant is located in the border of Bandung Regency
and Garut Regency, around 40 km south east of its key catchment area of the Greater
Bandung Area.
Table/Figure 3 Site Location relative to the catchment area
Bandung City
Legend
TPPAS Legok Nangka
Boundary of Municipality
Major Road
Railway
Source: Google Earth
Some supporting facilities have been built within the Legok Nangka WtE plant. These
supporting facilities include the landfill, the leachate treatment, and some auxiliary
infrastructure such as the road, gate, and fences. The landfill and the leachate treatment
facility were built by Ministry of Public Works and Housing (MPWH). The GCA is currently
undergoing asset transfer process from MPWH.
Around 20 ha of the land in the complex has been allocated as the WtE plant Plot, where SPC
would need to build the waste to energy plant. Project site map and several supporting
facilities can be further seen in the figure below:
Table/Figure 4 Existing Facility at Legok Nangka Complex

2.2. Water Supply
Raw water supply to the site will be secured by the GCA.
Table/Figure 5 Water supply facility preliminary alignment design
GCA is currently in the process of building raw water intake facility from Mount Kareumbi
Masigit which is located approximately 10 km north of the Project Site. The detailed
engineering design (DED) is being developed by GCA and is aimed to be finished in 2019.
The facility is planned to be constructed starting from 2020 and completed in 2021.
2.3. Transmission Line

Transmission line for the project will need to be developed by SPC. Preliminary study has
confirmed that there is no significant bottleneck from land, social, and environmental
standpoint.
Table/Figure 6 Transmission Line Alignment Map
Source: Google Earth

The study result suggests for the Project to adopt 150 kV double circuit transmission line by
considering the cost and benefit analysis. The project will require Transmission Line alignment
of 11.8 km from Legok Nangka WtE site to PLN’s grid in Parakan Muncang. With the estimated
length, the transmission line will be supported by around 38 towers.
2.4. EIA/AMDAL and SIPPA

GCA has completed the environmental study and in the process of obtaining Environmental
Permit and raw water permit (SIPPA).
1) EIA/AMDAL
• Environment Impact Assessment (EIA) and Public Consultation process has been
conducted and GCA is currently completing AMDAL process and applying for an
Environmental Permit for the purposes of the Project.
• EIA/AMDAL is prepared by the GCA based on reference technology and its
associated output analysis. The SPC shall amend the EIA/AMDAL and the
Environmental Permit if there are changes to the technology or output specification
that may have different environmental impact.
2) SIPPA
• The GCA is currently developing the DED for water supply facilities. Based on this
DED, GCA plans to obtain SIPPA permit. This permit will allow GCA to take raw
water up to 10 liter per seconds (860 m3) to be used for the Project. Water intake
facility itself is planned to be completed by 2021.
2.5. Fly Ash and Bottom Ash (FABA) treatment

Government has agreed that Legok Nangka Sanitary Landfill can be used for FABA disposal.
Based on permission from KLHK, MSW FA treatment will be implemented in WtE location and
can be landfilled in the sanitary landfill (after treatment). MSW BA can be directly landfilled in
the sanitary landfill on site without any treatment.
KLHK is currently finalizing the ministerial regulation draft under Directorate General of Solid
Waste and Hazardous Waste Management (PSLB3) prior to legal harmonization at MoLHR.

3. Project Scheme
3.1. Project Scope

GCA has defined the project scope to be delivered jointly by the public and private during the
concession period (20 years after COD). In essence, GCA will provide land, utilities and MSW
required for the project. SPC is required to finance, develop, and operate the waste processing
system and surrounding facilities.
Project scope details are provided in the figure below:
Table/Figure 7 Project Scope
Design &
Financing Operation & Maintenance
Construction
1. Land acquisition for Project Site, transmission line 5. MSW supply to site and Unsuitable
and substation, water supply facility Materials removal prior to site delivery
GCA
2. Water supply pipping to TPPAS Legok Nangka site
3. Landfill and leachate treatment facility (incl. FABA transfer to Landfill)
4. Supporting infrastructure (road, rainwater drainage, etc.) in TPPAS complex but outside of WTE
plot
6. MSW Acceptance Facility (Weighbridge, registration office, etc.)

7. Sample sorting facility (Dumping box, etc.)
8. Waste Processing system
SPC
9. Supporting infrastructure (Road, rainwater drainage, etc.) in WTE plot
10.Transmission line and substation1
11.Visitor center
Note: 1) PLN may exercise its rights to take over the ownership of special facility (transmission line), in which,
the O&M responsibility will be borne by PLN.
After the concession period, SPC is obliged to handover the asset back to GCA in a sufficient
condition.

3.2. Contractual Structure
The project will involve two contractual schemes; 1) contractual arrangement under waste
processing activity, which include Regional Cooperation Agreement, IIGF Guarantee, and
PPP Agreement; and 2) contractual arrangement under electricity generation activity which
comprise of PPA with PT PLN.
Table/Figure 8 Project Contractual Scheme
3.3. Commercial Structure

The project will have two main revenue sources, which are 1) Tipping Fee for waste
processing service from the GCA; and 2) Feed in Tariff (FIT) for electricity provision from PT
PLN.
In order to enhance financial viability of project, the GCA is currently applying for Government
Support in the form of Viability Gap Fund (construction cost subsidy) from MOF. Moreover,
GCA will apply for IIGF Guarantee to enhance project bankability.
Table/Figure 9 Money and Service Flow Scheme

Central SPC
MPWH MOF Government
Provincial SOE/BUMN
Government
Service
Asset Flow of fund
VGF* flow
transfer
Tipping Fee FIT

West Java Province
SPC PLN
(DLH-UPTD PSTR) MSW Electricity
Processing
Service
APBD
Guarantee
approval
West Java DPRD IIGF
Note: *) Under application process

3.4. Revenue Stream
The SPC will conduct WtE facility operations and secure two revenue streams which are as
follows:
1) Tipping Fee
Tipping Fee will be paid by the GCA to SPC at IDR 386,000/ton based on the amount
of waste processed. The Tipping Fee amount has been agreed by GCA and 6
Municipalities. This payment will be made during Concession Period starting from the
first month of Commercial Operation Date.
2) FIT
FIT will be paid by PT PLN to SPC for electricity generation. In pursuant to Article 11 of
Presidential Regulation 35/2018, the price of electricity purchase by PT PLN will depend
upon the amount of WtE facility capacity for electricity sales to PT PLN under the terms
as follows:
a) For WtE facility with capacity up to 20 MW, the FIT will be US 13.35 cent/kWh;
b) For WtE facility with capacity more than 20 MW, the FIT will be calculated based
on the formula below:
FIT (US cent/kWh) = 14.54 – (0.076 × capacity sold to PT PLN)
The FIT paid by PT PLN is inclusive of all cost incurred for network procurement from
WtE facility to PT PLN and will be without escalation.
Aside from these two primary revenue streams, SPC is also permitted to receive
additional revenue from third party by selling its residual products. However, the
expected revenue depends on the choice of technology and market demand.

4. Risk Allocation and Government Support
4.1. Risk Allocation

Risk analysis was conducted whilst applying the principles of allocating risks to the party who
can best control and manage the risks. Below table summarizes in general the risk allocation
planned for the project. Descriptions of risks are merely examples for the purpose of clarifying
risks in the context of the project. Further details of the risk matrix will be provided in the RfP
document.
Table/Figure 10 Risk Allocation
General risk allocation

direction*
Risk Category Example of Risks
Public Private
1) Revenue (i.e. • Shortage of MSW volume and/or quality resulting in

Tipping Fee and lack of Tipping Fee/FIT revenue. ✓
FIT)
2) Interface • Failure to harmonize PPP Agreement and PPA

contract which can result in conflict between West ✓
Java Province and PLN.
3) Network • Government’s failure to obtain/extend necessary

permits to provide utility network (e.g. SIPPA). ✓
Connectivity
4) Design, • COD delay due to mismanagement of construction

Construction, & activities. ✓
Commissioning
5) Operation • Disruption of performance delivery due to

insufficient plant capacity caused by unplanned ✓
shutdowns
6) Finance • IDR to USD fluctuation adversely affecting OPEX

✓
(imported chemicals, spare parts, etc.)
7) Asset • Equipment breakdown during plant operation due to

✓
machine defects.
8) Sponsor • Delay of necessary capital mobilization by sponsor

✓
due to lack of credit or equity owned by sponsor.
9) Site • Failure/Delay of land acquisition process which may

✓
hamper the development of Transmission Line.
10) Political • Issuance of general or discriminatory changes in law

✓
which impact WtE sector.
11) Force Majeure • Natural disaster, industrial strikes, civil disturbance, ✓ ✓

NGO’s sudden protests, etc.
Note: *) General risk allocation direction shows which party has the most risk allocated to them within certain
category. Thus, this does not necessarily suggest that one party shall bear all risks within the category.

4.2. Government Support
1) Government Support (Viability Gap Fund)

GCA has applied for Viability Gap Fund (VGF). If the application is approved by MOF,
VGF will function as construction cost subsidy for the project with a condition that it must
be less than 50% of the total construction cost related capex. VGF amount will be proposed
by the bidders as a financial bidding parameter.
2) IIGF Guarantee
GCA is currently applying for government guarantee through IIGF. As next step, GCA will
need to submit Guarantee Application Package (GAP) to IIGF. If the application is
approved, IIGF will guarantee GCA’s breach of financial obligation.
5. MSW Information
5.1. MSW Supply Commitment

The 6 Municipalities has committed a minimum guaranteed MSW amount of 1,853 ton/day.
The minimum guaranteed amount is based on the waste amount supplied per day on a
monthly average basis. The WtE facility is required to be able to process 15% above minimum
guaranteed volume, which yield in total plant capacity of 2,131 ton/day on a monthly-average
basis.
Table/Figure 11 Legok Nangka MSW Supply Commitment
MSW amount Commitment

Participating Municipalities
(average monthly ton/day)
Bandung City 1,200 - 1,303
Cimahi City 150 – 250
Bandung Regency 300 – 345
West Bandung Regency 75 – 86
Sumedang Regency 28 – 32
Garut Regency 100 – 115
TOTAL 1,853 - 2,131

Source: Minutes of Meeting between 6 Municipalities

5.2. MSW Quality
MSW Quality study was done in Sarimukti Landfill in both Rainy and Dry season to understand
the MSW quality expected in Legok Nangka. The study confirms that the waste quality is
suitable for a waste to energy project, with average calorific value of 1,402 kcal/kg and low
content of unsuitable MSW.
Table/Figure 12 Indicative MSW Quality
MSW Physical Content Calorific Value

100% 1800
1536
1600 1402
80% 1267
Content (%)
54.07% 1400
60.97% 58%
Calorific Value
60% 1200
(kcal/kg)
1000
40% 800
29.09% 33.62% 31% 600
20% 400
0% 9.94% 12.31% 11% 200
0
Rainy Season Dry Season Average
Rainy Season Dry Season Average
Ash Volatile Moisture
Hazardous Textile , Rubber,
Waste , 4.80% 0.64%
Rubber, Hazardous Rubber, 0.12% Mineral,
Hazardous 0.71% Mineral, 0.58% Other, 1.15%
Mineral, Waste , 1.40%
Waste , Textile , Other, 1.48% 1.48% Textile , Other, 0.82%
1.32% 0.18% 4.29% Glass, 0.77%
0.06% 5.31%
Glass, 0.70%
Glass, 0.83% Metal,
Metal, 0.25%
Metal,
0.22% Paper, Paper,
0.27% Paper,
Kitchen 7.80% Disposal 7.03% Kitchen
6.25%
Disposal
Waste ;
Kitchen Nappies, Waste ;
35.56% Disposal 7.13% 40.00%
Nappies, Waste ;
Nappies, 44.44%
6.47%
7.78%
Non-
Non- Non-
Recyclable Recyclable Recyclable
Plastic , Plastic , Plastic ,
26.45% Leaves / 23.50% 24.97% Leaves /
Garden , Garden ,
13.53% 10.00%
Leaves /
Recyclable Recyclable Garden , Recyclable
Plastic, Plastic, 6.47% Plastic,
1.88% 1.60% 1.74%
Rainy Season Waste Composition Result Dry Season Waste Composition Result Combined Waste Composition Result
5.3. MSW Logistics

The Participating Municipalities will be able to collect and deliver more than 1,853 ton/day
needed for the project for the duration of the PPP Agreement. The expansion of the Legok
Nangka waste acceptance hours as compared to the current Sarimukti landfill operating hours
help to reduce the number of trucks required for the logistic system. Logistics analysis shows
that it is possible to supply 1,853 ton/day MSW with the current MSW transport trucks
combined with 9% MSW truck increase. The municipalities are aware and committed to
budget for required resources.
Moreover, as a mid-term solution, there is a plan to develop Intermediary Logistic Station (SPA)
and long-haul trucks with big capacity. Under this logistic configuration, it is estimated that the total
logistics cost could be reduced by 22 - 26%.

Table/Figure 13 MSW Logistics Arrangement
5.4. Unsuitable Waste

The Unsuitable Waste is MSW which contains objects that may cause explosion and/or fire,
bulky waste, incombustible materials, hazardous waste, and other objects that disturbs
continuous operation. The 6 municipalities and GCA has agreed not to deliver such Unsuitable
Waste to TPPAS Legok Nangka.
Despite such agreement, small amount of Unsuitable Material could still get through and be
delivered to the site. Damages or revenue loss from unsuitable will be the risk of GCA.
Therefore, there is a plan to conduct selective sorting using SPA for trucks that do not pass
through TPS.
Table/Figure 14 Unsuitable Waste
cause explosion hazardous

and/or fire material Regional TPPAS Legok Nangka
bulky other material

material disturbs operation
incombustible
Other/Unsuitable landfill
material
6. General Technical Requirement
6.1. Open Technology

The project tender will be done using an “Open Technology” scheme, where bidder is free to

propose the technology which they deemed fit to achieve the project objective. The project
objectives are outlined in the Output Specification, which will be detailed in the Request for
Proposal Document.
Variations of possible technology to be used includes Incineration, Gasification as well as
Mechanical and Biological Treatment (MBT). Needless to say, the technology will need to be
“Proven Technology” with sufficient track record of reliable operations. While new innovative
technologies are important for the sector, the project will not consider technology that is not
sufficiently proven. This is to ensure that the reliability of waste processing is not jeopardized.
6.2. Output Specification

The general output specification is illustrated as an overall material and energy stream going
in and out of facility, where important requirements of each stream is specified. In this stage,
the actual waste processing facility is seen as a “technology black box”, in line with the open
technology principle.
Table/Figure 15 General Output Specification Diagram

1
MSW
2
Waste Acceptance Unsuitable
and Sample Sorting
3
Off-taking
5
Emission Gas
Processing 6
System Waste Water
4 7
Electricity Stench, Noise,
Generation Vibration
8
FABA
On-Site
Landfill
Input / Output
The diagram above defines 8 types of key inputs and outputs of the project. For each of the 8
items, we define the general technical specification below in the table:

Table/Figure 16 General Output Specification
No Flow Requirement/Specification
1 MSW Daily average (calculated on monthly basis):
1,853 ton/day – 2,131 ton/day for 365 days/year
2 Unsuitable The Government has agreed not to deliver Unsuitable Waste to
Waste Legok Nangka. However, small amount of Unsuitable Material could
still get through and delivered to the site. Therefore, a “Sample
Sorting” is required.
3 Off-taking Off-taking is defined as by-product that does not go to the entire
Processing System and can be sold to external parties.
Consequently, this by-product does not go to Legok Nangka
Landfill.
4 Electricity Min. 15 MW (gross capacity). Transmission line of 11.8 km to PLN
Generation Parakan Muncang substation
5 Emission Gas The Emission Standards of the Waste to Energy Facility must be in
accordance to the EU emission standards.
6 Waste Water The Facility Waste Water disposal must be in accordance with the
relevant Indonesian Standards
7 Stench, Noise, The Stench, Noise, and Vibration generated by the facility must be
Vibration in accordance with relevant Indonesian Standards
8 FABA • Bottom Ash ignition loss2 by weight is less than 5%

• On-site landfill can only accept the “treated Fly Ash” and Bottom
Ash from the “Processing System”.
• Any other unsuitable materials removed at sample sorting at the
upstream process shall not be landfilled.
It is expected that private investors will consider and propose the most suitable technology,
or combination of technologies, to fulfil this specification in a most reliable, sustainable and
cost-efficient way.
Further details of the specification will be provided in the RfP document including minimum
requirements and guidelines for design, construction, testing and commissioning, O&M and
asset handover at the end of concession period.
2 Ignition
Loss refers to the mass loss of a combustion residue whenever it is heated in an air or
oxygen atmosphere to high temperatures. The degree of Ignition Loss is expressed as % of mass
remains after the combustion process.
6.3. Technology Block Diagram
Since the project will conduct tender under open technology principles, bidders are required
to clearly indicate their technology selection in the form of Technology Block Diagram. This
will be required at PQ stage so that the track record can be assessed for the selected
technology.
Information to be provided include the block of technology, configurations of the blocks, and
information on material balance and expected electricity generation. Example of the diagram
is shown in the figure below:
Pattern 1 shows single technology block for WtE process. Bidder will need to provide the
processing technology to be used for this WtE process.
Pattern 2 shows example of technology block combination. In this example, we show a case
of MBT and off-taking of compost and RDF prior to WtE process.
Table/Figure 17 Technology Block Diagram with Example numbers

7. Schedule
7.1. Overall Schedule

Since Sarimukti landfill can accommodate MSW only up to 2023/2024, GCA is expecting for
the Project to reach commercial operation by 2023/2024. Below is our overall Project
Schedule:
Table/Figure 18 Overall Schedule of Legok Nangka WtE PPP Project
7.2. Procurement Process

Procurement is planned to be two-stage procurement in order to optimize technical and
financial requirements through optimization dialogue.
Indicative procurement process is described in the figure below. It is described based on LKPP
Regulation No. 29/2018.
In addition to the standard process, we have added an RfP finalization process after explaining
the RfP draft.
Table/Figure 19 Procurement Process
Source: LKPP Regulation No. 29/2018

7.3. PQ Timeline
PQ Announcement is expected in 4th Quarter of 2019 in unison with Registration and RfQ
Distribution. Deadline of Submission of Qualification Document will be around 7 weeks after
PQ announcement and the PQ Results will be announced 4 weeks after the Submission of
Qualification Document.
Consularization of legal documents for bidders based outside of Indonesia can be followed
the submission deadline but before the announcement of PQ results.
Table/Figure 20 Detailed Pre-Qualification Stage

Appendix: Questionnaire Feedback Form
In order to obtain market input and feedback on the Project, the GCA invites you to respond to the
questions described below. We sincerely request that your responses are received before the
end of day of 31st October 2019 by e-mail to pstrdlh@gmail.com with the subject “Legok Nangka
WtE PPP Project – Response to Market-Sounding Document”.
Upon receipt of all feedback, the GCA may invite some of the respondents for direct discussions,
if necessary, to clarify relevant contents in the feedback response.
All response documents and direct discussions will be treated as strictly confidential.
A. Background and Project Scope

1. What is your view on the Project Objectives and Scope?
2. What do you think about the Project Timeline (activities, duration, start dates, and the
contract duration)?
3. What are other types of information that you would like the GCA to provide to
Participants for the transaction process?
B. Technical and Financial Aspect

1. What is your opinion on the performance requirements (General Output
Specification) for the Project?
2. What is your view on the potential technology for this project, based on the
information provided?
3. Are there comments on the technology block diagram (material balance sheet)
FORM to be submitted for PQ?
4. How do you see the MSW related information (quality survey results, calorific value,
logistics)?
5. What are your comments on the revenue (tipping fee, FIT) and government support
(VGF, IIGF guarantee) for the project?
C. Role Demarcation and Risk Allocation

1. What is your view on the the GCA and the SPC allocation of responsibility?
2. What are your comments on the responsibilities of the SPC to construct, operate, and
maintain a transmission line until the end of the contract period?
3. What are your thoughts on the Risk Allocation?
D. Other Comments/Feedback
Please feel free to provide any other comments/feedback not covered in above list of
questions.


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West Java

Friday, 18 October 2019

Market Sounding Booklet 2

AMDAL Environmental Impact Assessment/Analisis Mengenai Dampak Lingkungan

ANDALALIN Traffic Impact Analysis/Analisis Dampak Lalu Lintas

AP Availability Payment/Pembayaran Ketersediaan Layanan

Ministry of National Development and Planning/National Development and

COD Commercial Operations Date

CTP Confirmation to Proceed

DED Detailed Engineering Design

DLH West Java Environment Agency/Dinas Lingkungan Hidup

DPRD Local Parliament/Dewan Perwakilan Rakyat Daerah

EIA Environmental Impact Assessment

EPC Engineering, Procurement and Construction

FABA Fly Ash - Bottom Ash

FBC Final Business Case/Kajian Akhir Prastudi Kelayakan

FIT Feed in Tariff

GAP Guarantee Application Package/Usulan Penjaminan (UP)

GCA Government Contracting Age

Indonesia Infrastructure Guarantee Fund/PT Penjaminan Infrastruktur

MBT Mechanical Biological Treatment

MOF Ministry of Finance/Kementerian Keuangan

Market Sounding Booklet 3

Ministry of Public Works and Housing/Kementerian Pekerjaan Umum dan

MSW Municipal Solid Waste

NGO Non-Governmental Organization/Lembaga Swadaya Masyarakat

OBC Outline Business Case/Kajian Awal Prastudi Kelayakan

Perpres Presidential Regulation

PPA Power Purchase Agreement/Perjanjian Jual Beli Listrik (PJBL)

Public Private Partnership/Kerja sama Pemerintah dan Badan Usaha

PT PLN PT Perusahaan Listrik Negara (Persero)

RDF Refuse Derived Fuel

RfP Request for Proposal

Water Retrieval and Utilization Permit/Surat Izin Pengambilan dan

SOP Standard Operating Procedure

SPC Special Purpose Company

T/L Transmission Line

TPA Final Disposal Site/Tempat Pembuangan Akhir

Final Waste Treatment and Processing Site/Tempat Pengolahan dan

TPS Temporary Waste Disposal/Tempat Pembuangan Sementara

UPTD Regional Waste Management Agency/Unit Pelaksana Teknis Daerah

VfM Value for Money

VGF Viability Gap Funding/Dukungan Kelayakan

WtE Waste to Energy

Market Sounding Booklet 4

• BAPPENAS Regulation Number 4 of 2015 on Guidelines for the Implementation of

1 Source: Pre-Feasibiilty Study of Legok Nangka TPPAS PPP Project (2018)

Table/Figure 1 Project Profile

Capacity 1,853 – 2,131 ton/day

• Tipping Fee (IDR/ton) from West Java Province and 6 Municipalities

Procurement Open Technology PPP tender

Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019)

1.4. Project Organization

Table/Figure 2 Project Organization

Source: West Java Provincial Government

2.1. Site Location

Source: Google Earth

Table/Figure 4 Existing Facility at Legok Nangka Complex

Source: West Java Provincial Government

Market Sounding Booklet 7

Table/Figure 5 Water supply facility preliminary alignment design

Source: West Java Provincial Government

2.3. Transmission Line