MINISTRY OF FINANCE West Java REPUBLIC OF INDONESIA, Provincisl 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 Materials can be downloaded at: https://tinyurl.com/wteLN | Supported by: Est Canada @u = WORLD BANKTable of Contents Table of Contents Preface. Glossary . 4. Project Background, Objective, and Profile. 41.1. Background. 12 Objectives. 13. Profil... 114, Project Organization, 2. Site Information and Permits 2.1. Site Location 2.2. Water Supply 23. Transmission Line 2.4, EIA/AMDAL and SIPPA, 2 ‘ 255 Fly Ash and Bottom Ash (FABA) treatment. me: 3. Project Scheme.. 3.1. Project Seape 3.2. Contractual Structure 33. Commercial Structure. 3.4. Revenue Stream 4, Risk Allocation and Government Support. 4.2. Rsk AOCAION nnn 42. Government Support 5. MSW Information .. i ‘5.1. MSW Supply Commitment... na 5.2, MSW Quality 15 5.3. MSW Logistics, 5.4, Unsuitable Waste. 6. General Technical Requirement 6.1. Open Technology. 6.2 Output Specfcation 63, Teemnology Block Diagram 17. Schedule. 7.1, Overall Schedule 7.2. Procurement Process 73, Pa Timeline . Appendix: Questionnaire Feedback Form. 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 Entiles. 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 ofthe 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 ofthis document. ‘Market Sounding Booklet 2 ‘Legok Nangka Regional Final Waste Treatment And Processing Site PPP ProjectGlossary AMDAL | Environmental impact Assessment/Analisis Mengenai Dampak Lingkungan ANDALALIN | Traffic Impact Analysis/Analisis Dampak Lalu Lintas AP Availabilty Payment/Pembayaran Ketersediaan Layanan Ministry of National Development and PlanningiNational Development and BAPPENAS | planning Agency cop 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 hes Indonesia Infrastructure Guarantee Fund/PT Penjaminan Infrastruktur [WCF _| indonesia (PT PI) fe ies National Public Procurement Agency/Lembaga Kebijakan Pengadaan Barang dan Jasa Pemerintah MBT Mechanical Biological Treatment MOF Ministry of Finance/Kementerian Keuangan Markat Sounding Booklet [Logok Nangka Regional Final Waste Treatment And Processing Site PPP Project, MOHA Ministry of Home Affairs/Kementerian Dalam Negeri an ‘Ministry of Public Works and Housing/Kementerian Pekerjaan Umum dan Perumahan Rakyat Msw Municipal Solid Waste NGO Non-Govemmental Organization/Lembaga Swadaya Masyarakat Bc Cutline Business Case/Kajian Awal Prastudi Kelayakan Perpres _| Presidential Regulation PPA Power Purchase Agreement/Perjanjian Jual Bell Listrik (PJBL) Public Private Partnership/Kerja sama Pemerintah dan Badan Usaha PPP (KPBU) Pa Pre-Qualification PTPLN | PT Perusahaan Listrik Negara (Persero) ROF Refuse Derived Fuel RIP Request for Proposal aaa Water Retrieval and Uilization Permit/Surat Izin Pengambilan dan Pemanfaatan Ait SOP Standard Operating Procedure ‘SPC Special Purpose Company TH Transmission Line TPA Final Disposal Site/Tempat Pembuangan Akhir Tppas | Final Waste Treatment and Processing Site/Tempat Pengolahan dan Pemrosesan Akhir Sampah TPS Temporary Waste Disposal/Tempat Pembuangan Sementara UPTO Regional Waste Management Agency/Unit Pelaksana Teknis Daerah PSTR Pengelolaan Sampah TPA/TPST Regional vim Value for Money vor Viability Gap Funding/Dukungan Ketayakan WE Waste to Energy Market Sounding Booklet LLegok Nangka Regional Final Waste Treatment And Processing Site PPP Project4. Project Background, Objective, and Profile 4.4, Background The Province of West Java has a large and increasingly urbanized population. Itis expected to grow from 46 million to over 87 milion by 2035". 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 faciity 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: 41, Build faclty for the final MSW treatment and processing forthe City of Bandung, Cimahi City, Bandung Regency, West Bandung Regency, Sumedang Regency and Garut Regency; Improve the sanitation and health conditions in the Participating Municipaities; ‘Support the concept of a circular economy and implement Waste to Energy (WIE) operations. * Source: Pre-Feasibilly Study of Legok Nangka TPPAS PPP Project (2018) Market Sounding Booklet 5 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project 1.3. Profile ‘The project will require facity with approximately 2,000 ton/day of processing capacity. The project is designated as waste-to-eneray model case and requires minimum 15 MW of ‘electricity generation capacity. It wll 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 cy 41853 ~ 2,131 toniday Min, 15 MW (gross) From 8 Municipals (Bandung City, Cimabi Cy, Bandung Regency, Sumedang Regency, West Bandung Regeney, Gana Regency) IESE PP (Bulc-Operate-Transter for 20 years concession period after COD) + Tipping Fee (DRYton) from West Java Province and 6 Municipalities + FIT(USD/kW) from PLN Peet eee ‘Open Technology PPP tender ‘Source: FBC of Logok Nangka Regional TPPAS PPP Project (2018) 1.4, Project Organization “The project wil be headed by West Java Governor. Regional Waste Management unit (UPTO 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 Ministy of Finance, Detal of the Project Organization can be seen in the figure below. ‘Tablo/Figure 2 Project Organization Legok Nangka PPP Team ‘Source: West Java Provincial Government Market Sounding Booklet 6 LLegok Nangka Regional Final Waste Treatment And Processing Site PPP Project,2. Site Information and Permits 2.4. Site Location ‘The site selected for Lagok Nangka WIE Plant is located in the border of Bandung Regency ‘and Ganut Regency, around 40 km south east of its key catchment area of the Greater Bandung Area ‘TablofFigure 2 Site Location relative tothe catchment area ‘Source: Google Earth Some supporting facilities have been built within the Legok Nangka WIE plant, These supporting facilities include the landfil, 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 facities can be further seen in the figure below: ‘TablelFigure 3 Existing Facility at Legok Nangka Complex ‘Source: West Java Provincial Government Market Sounding Booklet if ‘Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project 2.2. Water Supply Raw water supply o the site will be secured by the GCA. ‘Tablo/Figure 4 Water supply facility preliminary alignment design » tegoi Nagi ‘Source: West Java Provincial Government GCA is currently in the process of building raw water intake facilty 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 wil 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 Transmigsion Line Alignmont Mi ‘Source: Google Earth Market Sounding Booklet 8 Legok Nangke Regional Final Waste Treatment And Processing Site PPP Project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 17.8 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, EIATAMDAL and SIPPA GCA has completed the environmental study and in the process of obtaining Environmental Permit and raw water permit (SIPPA), 1) EIAAMDAL + 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. + EWWAMDAL Is prepared by the GCA based on reference technology and associated output analysis, The SPC shall amend the EIVAMDAL and the Environmental Permitif 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 faciliies. 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 m°) to be used for the Project. Water intake facility itself is planned to be completed by 2021 Fly Ash and Bottom Ash (FABA) treatment Government has agreed that Legok Nangka Sanitary Landfil can be used for FABA disposal. Based on permission from KLHK, MSW FA treatment will be implemented in WtE location and can be landilled in the sanitary landiil (after treatment). MSW BA can be directly landfiled in the sanitary landfil 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. Market Sounding Booklet 9 LLegok Nangka Regional Final Waste Trealment And Processing Site PPP Project 3. Project Scheme 3.4. 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 facies, Project scope detalls are provided in the figure below: ‘TablelFigure 7 Project a a ‘MW Acceptance ality (Welghbride, relstration fleet Sample sorting ality (Dumping box etc) last Processing stem 9. Supporting infastructre (Road, aiwater drainage tn WTE pet Sb.iemision ne ard suostation® Sater canter sc Note: 1) PLN may exercise its rghisto take over the ownership of special faci (ansmission ne), in which, the O&M responsiblity wil be borne by PLN, ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) After the concession period, SPC is obliged to handover the asset back to GCA in a sufficient condition, Market Sounding Booklet 40 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project3.2. Contractual Structure ‘The project will involve two contractual schemes; 1) contractual arrangement under waste processing activity, which include Regional Cooperation Agreement, IGF Guarantee, and PPP Agreement; and 2) contractual arrangement under electricity generation activity which 3.4, Revenue Stream ‘The SPC will conduct WIE facility operations and secure two revenue streams which are 2s follows: 1) Tipping Fee comprise of PPA with PT PLN, Tipping Fee wil 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, ‘TablelFigure 8 Project Contractual Scheme Be msn 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 WIE facility capacity for electricity sales to PT PLN under the terms a follows: a) For WtE facility with capacity up to 20 MW, the FIT will be US 13.35 cenvKWh; b) For WIE facility with capacity more than 20 MW, the FIT willbe calculated based (on the formula below: ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) FIT (US cent/kWh) = 14.54~ (0.076 x capacity sold to PT PLN) 3.3. Commercial Structure ‘The FIT paid by PT PLN is inclusive of all cost incurred for network procurement from The project will have two main revenue sources, which are 1) Tipping Fee for waste MEE facilty to PT PLN and will be without escalation. processing service from the GCA; and 2) Feed in Tarif (FIT) for electricity provision from PT ‘aldo frorm thee vo. prenary,revernie)etwaie, 62°C" ebsol par eal ts escaive ca adgitional revenue from third party by selling its residual products. However, the Inorder to enhance financial viability of projec. the GCA is currently applying for Government expected revenue depends on the choice of technology and market demand ‘Suppor in the form of Viability Gap Fund (construction cost subsidy) from MOF. Moreover, SCA wil apply for IGF Guarantee to enhance project bankabllty. ‘TablelFigure 8 Money and Service Flow Scheme emo | vane ie im ) Trg Foe “yy ss — / | ie Note: *) Under application procese ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) Market Sounding Booklet " ‘Market Sounding Booklet 2 ‘Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project |Legok Nengka Regional Final Waste Treatment And Processing Site PPP Project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 Tisks in the context of the project. Further details ofthe risk matrix will be provided in the RIP document. ‘TablefFigure 10 Risk Allocation enn direction* Reena eens Ce 41) Revenue! + Shortage of MSW volume andlor quality resulting in. Tipping Fee and | lack of Tipping FeelFT revenue. v Fir) 2) Interface + Failure to harmonize PPP Agreement and PPA contract which can result in confict between West |v Java Province end PLN, 3) Network + Govemments failure to obtainlextend necessary | Connectivity permits to provide uty network (eg, SIPPA). 4) Design, + COD delay due to mismanagement of construction Construction, & | activities. v ‘Commissioning '5) Operation + Disruption of performance delivery due to insufficient plant capacity caused by unplanned rf shutdowns 6) Finance + IDR to USD fluctuation adversely affecting OPEX . {imported chemicats, spare parts, etc:) 7) Assot ‘+ Equipment breakdown during plant operation due to ei machine defects 8) Sponsor + Dotay of necessary capital mobilization by sponsor p due to lack ofcreit or equity owned by sponsor. 9) Site + Fallure/Delay of land acquisition process which may | hamper the development of Transmission Line. 10)Poltical + Issuance of general or discriminatory changesiniaw | hich impact WIE sector. 11)Force Majeure | + Natural disaster, industrial strikes, civil disturbance, | ¥ v NGO's sudden protests, etc ‘Note: *) General risk allocation direction shows which party has the most risk allocstes to them within certain category, Thus, iis does not necessaniy suggest hat one party sali bear al rks win the category. ‘Source: FBC of Legok Nangks Regional TPPAS PPP Project (2019) Market Sounding Booklet 8 LLegok Nangka Regional Final Waste Treatment And Processing Site PPP Project 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) IGF 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 quarantee 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 WIE 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 baie TobaFigure 11 Legok Nangka MSW Supply Commitment ETS (Cee) Bandung City 4.200- 1,908, Cimahi cy 150-250 Bandung Regency 300-345 West Bandung Regency 75-86 Sumedang Regency 28-32 aru Regency 100-116 TOTAL 4,989-2,191 Source: Mrs of Meaing Dtween 6 Munciates, ‘Market Sounding Booklet 4 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project,5.2. MSW Quality MSW Quality study was done in Sarimukti Lancfil 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. ‘TablelFigure 12 Indicative MSW Quality [MSW Physical Content Carte Value 100% 1536 at a2 Sao Re re aK Ray Season Dry Season en voile eMastce “al ‘Source: FBC of Logok Nangka Regional TPPAS PPP Projec (2019) 5.3. MSW Logistics ‘The Participating Municipalities will be able to collect and deliver more than 1,853 toniday needed forthe project forthe duration of the PPP Agreement. The expansion of the Legok Nangka waste acceptance hours as compared tothe current Sarimuktilandfll operating hours help to reduce the number of trucks required for the logistic system. Logistics analysis shows that itis 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 isa plan to develop intermediary Logiste Staton (SPA) ‘nd long-haul trucks with big capacity. Under this logistic configuration, tis estimated thal the total logistics cost could be reduced by 22 - 26%. Market Sounding Booklet 15 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project ‘Table(Figure 13 MSW Logistics Arrangement Direct Transport Midtong ‘Source: FBC of Legok Nangka Regional TPPAS PPP Projec (2019) 5.4, Unsuitable Waste The Unsuitable Waste is MSW which contains objects that may cause explosion andlor 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 fo conduct selective sorting using SPA for trucks that do not pass through TPS. (2 \30 couse explosion hanrdous \ ‘and/or fie moter \ ‘Regional TPPAS Legok Nongka \ 2 Ww a) pa . cee Othe /ensuteble lonafis moter! — ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) Market Sounding Booklet 16 Lego Nangks Regional Final Waste Treatment And Processing Site PPP Project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 celailed 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 thatthe reliability of waste processing is nol jeopardized. 6.2, Output Specification The general output specification is ilustrated 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’, technology principle. ‘TablofFigure 15 General Output Specification Diagram @ new nyoree in line with the open ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) ‘The diagram above defines 8 types of key inputs and outputs ofthe project. For each of the 8 items, we define the general technical specification below in the table. Market Sounding Booklet Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project 7 Daily average (calculated on monthly basis): 1,853 ton/day ~ 2,131 toniday for 365 daysiyear 2 [Unsuitable | The Government has agreed not to deliver Unsuitable Waste to Waste Legok Nangka, However, small amount of Unsuitable Material could sill get through and delivered to the site, Therefore, a “Sample Sorting’ is required. 3 Jotttaking | Of-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 Facllity 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 loss 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. ‘Soureer FBC of Legok Nangka Regional TPPAS PPP Project @OTe) Itis expected that private investors will consider and propose the most suitable technology, ‘or combination of technologies, to full this specification in a most reliable, sustainable and costeffcient 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. Ignition Loss refers (othe mass loss of a combustion residue whenever its 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. ‘Market Sounding Booklet 8 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project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 WIE 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 WIE process, Tabisgue 17 Techslgy Sack Diagram vith Example murbers ES eee Eee ee aod D score 9am. | @ v0. wie roces : te a e | 1600ted 1503p ‘Sted Ep Ma wee process | -@— ae 25Mw 7508 @ . Ba soot ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) “Market Sounding Booklet 19 Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project 7. Schedule 7.4. Overall Schedule ‘Since Sarimukti landfil 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: Tablo/Figure 18 Overall Schodule of Legok Nangka WE PPP Project = Bits me | | | I oai/20na ‘Source: FBC of Legck Nangka Regional TPPAS PPP Project (2019) 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 igure below. Itis described based on LKPP Regulation No. 29/2018, Inadaition to the standard process, we have added an REP finalization process after explaining the RIP draft. Table/Figure 19 Procurement Process ‘Source: LKPP Regulation No, 2972018 Market Sounding Booklet 20 ‘Legok Nangka Regional Final Waste Treatment And Processing ite PPP Project7.3. PQ Timeline PQ Announcement is expected in 4th Quarter of 2019 in unison with Registration and RIQ 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. ‘TablelFigure 20 Detaled Pre-Qualification Stage Week 3 Doys 55 Weeks 4 weeks Week 11 Weets ‘Source: FBC of Legok Nangka Regional TPPAS PPP Project (2019) ‘Market Sounding Booklet a ‘Legok Nangka Regional Final Waste Treatment And Processing Site PPP Project ‘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 ond of 43" £2019 by e-mail to oStcihi@amail.com with the subject “Legok Nangka WIE PPP Project ~ Response to Market-Saunding Document’. Upon receipt ofall feedback, the GCA may invite some of the respondents for direct discussions, I necessary, to clarity 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 ike the GCA to provide to Participants for the transaction process? B. Technical and Financial Aspect 1. Whatis your opinion on the performance requirements (General Output Specification) for the Project? 2. Whats 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 shee!) FORM to be submitted for PO? 4. How do you see the MSW related information (quality survey results, calorific value, logistics)? 5. What are your comments on the revenue (tipping fe, FIT) and government support (NGF, 1IGF guarantee) forthe project? ©. Role Demarcation and Risk Allocation 1. What is your view on the GCA and the SPC allocation of responsibilty? 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. Market Sounding Booklet 22 LLegok Nangka Regional Final Waste Treatment And Processing Site PPP Project