Project Performance Support for

Dili Solid Waste Management PPP Project

Democratic Republic of Timor-Leste

Terms of Reference for Consulting Services

I. BACKGROUND

1. The Asian Development Bank (ADB) supported the Government of Timor-Leste

(GOTL) represented by Ministry of State Administration (MSA) in the development of the
Dili Solid Waste Management Project (DSWMP) and procurement of three contracts
under the DSWMP. The contracts are: (i) Contract 036: Supply of collection and landfill
operations equipment1 , (ii) Contract 006: Collection and transportation of urban solid
waste (USW) services, and (iii) Contract 007: Design, build, rehabilitate and operate
(DBRO) contract for the landfill located at Tibar Bay in Liquiça Municipality, about 10 km
west of Dili, where collected USW will be transported and disposed (together, the “SWM
Project”).

2. The three contracts were signed by Ministry of State Administration and the
management of the contracts is undertaken by Dili Municipal Authority (DMA). The
Project Management Unit (PMU) was set up by the DMA to undertake management of
the three contracts.

3. The majority of the Project’s capital expenditure (e.g. purchase of collection and
landfill equipment, landfill design and construction milestone payments) will be funded
from Timor-Leste’s Infrastructure Fund (IF) whereas the operation expenditure
associated with urban solid waste collection and transportation and landfill operations
and management will be funded by DMA’s annual budget.

4. The three contracts were awarded through competitive bidding and are under
implementation.
i. Contract 036: The Contractor / Supplier has supplied the equipment and the
equipment is under inspection by the PMU. The PMU will accept the supplies
after the
ii. Contract 006: The Contractor has installed more than 10% of the collection
points and is awaiting equipment from Contract 036 to install bins and commence
garbage collection and disposal services.
iii. Contract 007: The Contractor is undertaking Depot Works and developing the
sanitary landfill.

5. ADB is seeking to hire a technical consultant to support and closely work with the
PMU in monitoring the contracts.

1 Further divided into 3 Lots of Lot 1: Supply of Containers and Bins; Lot 2: Supply of Collection &
Miscellaneous Equipment; Lot 3: Supply of Landfill Operations Equipment, to allow participation of local
contractors.

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 II. PROJECT OBJECTIVES AND OVERVIEW

6. The SWM Project looks to achieve the following key objectives:

i. Improved urban environmental quality: reduced smoke from current rubbish
burning (by residents in Dili and by waste-pickers at the dump site) and cleaner
streets;
ii. Improved public health benefits: the current uncovered rubbish provides a
breeding ground for mosquitos that spread the dengue and malaria viruses;
iii. Reduced risk of flooding: drains blocked with rubbish contribute to flooding;
iv. Improved marine environment: reduced transfer of solid waste to the marine
environment resulting in cleaner beaches and enhanced tourism opportunities;
v. Improved water quality: prevention of the seepage of leachate into groundwater
abstracted for potable use downstream of the landfill site; and the treatment of
leachate to approved standards prior to discharge off-site;
vi. Climate change: reduced and controlled emissions of greenhouse gases through
landfill gas collection systems and flaring infrastructure;
vii. Capacity building of local government: transfer of knowledge and contract
management skills to the Project Management Unit of Dili Municipality; and
viii. Local employment opportunities: participation of local companies in the
contracts, as well as potential for benefitting from waste reduction and diversion
activities.

III. CONSULTANCY SERVICES

7. To ensure successful implementation of the SWM Project, Asian Development

Bank (ADB)’s Office of Markets Development and Public-Private Partnership (OMDP) is
looking to hire a consulting firm or firms with joint responsibility (“Consultant”), which will
provide performance monitoring support to the two key government implementation
agencies of the Project: (i) Ministry of State Administration (MSA) and (ii) Dili Municipal
Authority (DMA) of Timor-Leste (together, “Authority”).

8. The Consultant will be hired and supervised by ADB’s Office of Markets

Development and Public-Private Partnership (OMDP), referred to as the “Client” with this
additional project performance monitoring support continuing to be funded by AP3F. The
Consultant shall owe its duty of care to ADB as well as to Government of Timor-Leste in
particular, MSA and DMA.

9. ADB will procure the services of a firm which will mobilize two international
experts and one national consultant with SWM, Environmental & Social (E&S) and
engineering (with local presence) expertise for the assignment further described in the
terms of reference (TOR) on an intermittent basis. The split of the number of person-
months required between the three consultants is flexible provided that the total does not
exceed 37.7 months. It is expected that the international consultants will spend at least
70 days of their work time in Timor-Leste.

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Table 1. Consultants’ Inputs Required
Person-Months
Positions
Required2
International
1 SWM Expert* 14.7
1 E&S Expert 1.17
National
1 Engineer 21.8
Total of 3 Consultants Up to 37.7
* Year 1: 8-9 months; Year 2: 6-7 months. Note the above has been calculated using 22 workdays
per month for home office work and 26 workdays a month for field work.

10. The consulting services contracts will be output based with milestone payments
paid upon the Client’s and MSA/DMA’s acceptance of the deliverables. ADB’s Quality
Cost-Based Selection (QCBS) will be applied, with detailed arrangements set out in the
request for proposal document.

IV. SCOPE OF WORK

11. The Consultant is expected to assist the Authority on following Contracts to be

implemented, monitored and managed under the SWM project:

i. Contract 036: Supporting the PMU in undertaking monitoring of equipment

during the warranty period (3 years from acceptance by PMU).
ii. Contract 006: Collection services contract for Dili, split into two Zones (East Zone
and West Zone) and which will be undertaken by separate contractors; and
iii. Contract 007: Landfill Design, Build, Remediate and Operate contract, to
upgrade the existing open dump site at Tibar into a sanitary landfill designed
and operated to modern international standards.

12. To enhance the Consultant’s understanding of interlinked nature of the

aforementioned contracts, anticipated timescales for TA inputs and main elements are
listed in Table 2.

Table 2. Anticipated timescales for TA inputs and main elements

Contract Contract Element Overview of Inputs Status

No. Required
Equipment Authority obligations Completed
procurement, Lots 1, 2 Contract management
and 3
Inspection of supplied equipment Underway – TA
against specifications inputs not required
036
Sign off for taking over of the
equipment by the Authority
Inspection / Monitoring of Underway – TA
equipment during warranty inputs required
period

2 One person-month is equivalent to 22 man-days (home office) or 26 man-days (field work).

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Contract Contract Element Overview of Inputs Status
No. Required
Contractor mobilization Authority obligations Completed
Contract management
Installation Authority obligations Underway – TA
Services Joint survey with contractor inputs required
Design review
Construction
Contract supervision/oversight
006 Tests on completion
(East Zone) Contract management
Collection Authority obligations Underway – TA
Services Contract management inputs required
Field checks and inspections
Review of reports
Assessment and certification of
contractor’s invoices
Contractor mobilization Authority obligations Completed
Contract management
Installation Services Authority obligations Underway – TA
Joint survey with contractor inputs required
Design review
Construction
supervision/oversight
Tests on completion
Contract management
Collection Services Authority obligations Underway – TA
Contract
Contract management inputs required
006
Field checks and inspections
(West Zone)
Review of reports
Assessment and certification
of contractor’s invoices
Others Develop and maintain a TA inputs required
comprehensive issues list along
with remedies to resolve them
Draft Contract amendments
Review reports / letters prepared
by the Contractor and draft
responses to them
Contractor mobilization Authority obligations Completed
Contract management
Design-Build Services Authority obligations Underway – TA
Oversight of Site investigations inputs required
Oversight of baseline
environmental monitoring
Review of Detailed Design and
Contract Design-Build Documents
007 Construction
supervision/oversight (Depot
Area, Cell 1 and Cell 2)
Tests on completion
Contract management
Review of progress reports and
submissions
Assessment and certification of

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 Contract Contract Element Overview of Inputs Status
No. Required
contractor’s invoices
Operation Authority obligations Underway – TA
Services Contract management inputs required
Field checks and inspections
Review of progress reports and
submissions
Assessment and certification
of contractor’s invoices
Others Develop and maintain a TA inputs required
comprehensive issues list along
with remedies to resolve them
Draft Contract amendments
Review reports / letters
prepared by the Contractor
and draft responses to them

13. The Consultant’s general TOR applicable to all Contracts and TOR specific to
certain Contracts are further described below:

i. General (applicable to all Contracts):

a) Assist MSA/DMA in monitoring the private sector partners’ compliance with

obligations under the Contracts and assisting MSA/DMA in the role of
Authority providing inspection, supervision and project management
services, as required;

b) Provide support to MSA/DMA to decide on and determine all contractual

issues arising under all contracts and to ensure that the Authority enacts all
necessary processes within the time limits stipulated in the contracts, to
include, but not be limited to, the following:

(i) Preparation of a supervision and quality control plan for the project
outlining routines and procedures to be applied in contract
management, inspection, supervision, administration and capacity
building;
(ii) Issuing communications, notices and responding to correspondence;
(iii) Maintaining accurate records of the progress of the Contracts,
communication (letters, emails, presentations, reports) sent to and
received from the Contractor;
(iv) Participate in regular meetings with the Contractor;
(v) Giving ‘approval’ for the Contractors to proceed on all matters where
such approval is required;
(i) Monitor the contractor’s performance against Key Performance
Indicators (KPIs) stipulated in the contracts and advise the Authority on
any instances of breaches of KPIs and follow-through actions required;
(vi) Review and assess Contractor’s requests for variations and provide
advice to the Authority on value engineering;
(vii) Prepare amendments to Contracts with support from legal advisor;
(viii) Provide advice on matters concerning the safety, care and
maintenance of the equipment and construction works and the safety

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 of operations by the Contractors in executing the Contracts;
(ix) Advise the Authority on all technical matters relating to compensation
events and disputes on projects and to make recommendations
thereon;
(x) Review and assess, and comment as required, on all of the
Contractors’ submissions;
(xi) Prepare and update an issues list for each Contract;
(xii) Review the Contractor’s construction, monitoring and operations
reports, on a monthly, quarterly or annual basis as applicable; and
(xiii) Assist with processing of Contractors’ payment requests.

c) Advise GOTL regarding remediation measures to be taken if KPIs are not

met, including payment of liquidated damages, deduction of Penalties,
occurrence of events of default, occurrence of force majeure events, and
possibly suspension and/or termination of the Contract(s) followed by hand
back of GOTL Project Assets and replacement of the private sector
partner(s), if need be;

d) Train PMU staff on all aspects required to oversee and manage the
Contracts and establish suitable contract management processes so that
they may independently perform the tasks post-completion of the monitoring
TA; and

e) Generally brief GOTL on the SWM Project in periodic meetings among the
Project’s stakeholders (MSA, DMA, CNA, MOF, Ministry of Public Works,
Secretary of State for the Environment, etc., as applicable).

ii. Equipment Procurement (applicable to Equipment Contract)

In addition to the General requirements:

a) Provide support to MSA/DMA on monitoring the performance of the supplied

equipment during the warranty period; and
b) Support the PMU in preparation of warranty claims, if needed.
.
iii. Design and Construction (applicable to Collection Contracts and Landfill
DBRO Contract)

In addition to the General requirements:

a) Provide support to MSA/DMA to decide on and determine all contractual

issues arising under the contracts on design- and construction-related
matters and to ensure that the Authority enacts all necessary processes
within the time limits stipulated in the contracts, to include, but not be limited
to, the following:

(i) Provide oversight and review of the Contractor’s plans and proposals
for site investigations, surveys, data acquisition, baseline monitoring
and compliance to the Applicable Laws;
(ii) Monitor and review the results and findings of any field surveys and
inspections conducted by the Contractor against the requirements of

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 the Contracts;
(iii) Review the Detailed Engineering Designs (DEDs) including design
drawings and Design-Build Documents, as applicable, and make
recommendations on key changes and interventions needed for
effective, efficient and quality implementation of the construction works,
in line with the performance requirements specified in the Contracts;
(iv) Conduct a general overview of the implementation program schedule
for completion of the DEDs in so far as it relates to the obligations of
the Authority, as the case may be, and keep the Authority informed of
those obligations;
(v) Prepare a specific construction supervision and quality control plan for
each applicable contract outlining routines and procedures to be
applied in construction supervision and administration;
(vi) Selectively audit the construction programs for compliance with the
completion requirements and, if necessary, recommend any
amendments to the programs which may be necessary to achieve the
construction completion requirements;
(vii) Monitor the progress of the construction works against the initial
construction programs and any additional construction works programs
(as relevant) and report to the Authority any variance from the relevant
program by giving written notice of the variance;
(viii) Witness construction quality assurance tests and key construction
procedures (for example, welding of the geomembrane);
(ix) Support the Authority in monitoring and checking the quality control and
quantity measurements of the construction works carried out, including
monitoring the quality of the works and the quantities as to their
correctness. The firm selected shall draw the Authority’s attention to
any instances of non-conformance of the Contractor's works with the
technical specifications. Provide advice and review Contractor’s
submissions to close out non-conformance reports;
(x) Review the quality of the completed civil construction works and
equipment installations with the Project Management Unit (PMU),
including conducting/witnessing Tests on Completion;
(xi) Identify construction problems and delays and recommend to the
Authority for actions to expedite progress, where the Works schedule
is falling behind;
(xii) Support the Authority in checking for all quantity measurements and
calculations required for payment purposes and ensuring that all
measurements and calculations are carried out in a manner and at the
frequencies specified in Contracts;
(xiii) Prepare an issues list and update them on weekly basis;
(xiv) Prepare amendments to Contracts with support from legal advisor; and
(xv) Support the Authority in monitoring during construction and operation
stages that the contractors are complying with the stipulated conditions
of contract agreement including meeting required performance and its
indicators (in which case of non-compliance, abatement regime will
apply and includes responsibility of maintaining the Authority Assets),
environmental and social safeguards requirements and submission of
monthly/quarterly reports from the compliance aspect;

iv. Operations (applicable to Collection Contracts and Landfill DBRO Contract)

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 In addition to the General requirements:

a) Provide support to MSA/DMA to decide on and determine all contractual

issues arising under the contracts on operation-related matters and to
ensure that the Authority enacts all necessary processes within the time
limits stipulated in the contracts, to include, but not be limited to, the
following:

(i) Conduct periodic checks, at times reasonably determined by the

Authority, for compliance with operating requirements (including where
necessary verification through site visits);
(ii) Undertake random checks of the condition of Authority assets supplied
to the Contractors to assess compliance against the provisions of the
Contract, to include reviews of maintenance and inspection records
and observance of functional performance during operations;
(iii) Conduct periodic meetings with the Contractor to review the
Contractors’ operational performance against the provisions of the
Contracts;
(iv) Monitor the implementation of the Contractors’ training plans and
assess the competence of the personnel to undertake the duties to
which they have been assigned. Advise the Authority where it is
considered necessary for contractor’s personnel to be re-trained or
replaced;
(v) Assist the Authority to resolve any issues arising from the location of
collection points, collection containers and collection routing and/or the
need to extend service coverage (spatial extent or frequency);
(vi) Advise the Authority on any need to supplement the collection
equipment where the available equipment cannot provide adequate
coverage in compliance with the contract requirements;
(vii) Prepare an issues list and update them on weekly basis;
(viii) Prepare amendments to Contracts with support from legal advisor; and
(ix) Assist the Authority to resolve any conflicts that arise between
Contractors in the use of shared facilities.

V. MINIMUM QUALIFICATIONS

14. The Firm shall have relevant and proven work experience in the preparation
and/or review of detailed engineering designs, managing civil works contracts,
construction supervision of civil works and, in particular, landfill construction, managing
operations contracts, procurement contracts, and overall monitoring and evaluation of
projects in the sanitation and waste infrastructure sector.

15. Skills. The Firm will bring qualified expert personnel with the following key skills,
as relevant for the provision of the services envisaged under the TOR. The skills of the
Firm should include:

(i) specific functional expertise in providing independent engineering services for

waste infrastructure and sanitation projects, especially projects delivered in
South East Asia;

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 (ii) expertise of the personnel nominated by the Firm in tendering, construction,
supervision issues, evaluation mechanisms and monitoring risks likely to
emerge;
(iii) implementation process planning and review mechanisms;
(iv) prior experience in the role of either the Contractor’s Representative or the
Employer’s Representative for waste management projects;
(v) expertise in conflict resolution;
(vi) assessing risk aspects that impact implementation of waste infrastructure
projects;
(vii) extensive involvement in implementation of waste infrastructure and sanitation
projects including monitoring of landfill and collection and transportation
services operations applying abatement schemes in case of non-performance;
(viii) good understanding of local policy and regulatory issues impacting waste
infrastructure and sanitation project implementation in Timor-Leste or in South
East Asia; and
(ix) extensive involvement in stakeholder consultative process.

16. The personnel nominated by the Firm shall have extensive experience in
implementing waste infrastructure and sanitation projects and country-specific design
and construction supervision experience that would include extensive knowledge of local
regulatory issues impacting waste infrastructure and sanitation projects in Timor-Leste,
as well as other country-specific knowledge for the successful implementation of the
collection and landfill contracts.

Education:
• Master’s degree or equivalent in civil, mechanical, geotechnical, environmental
and/or electrical engineering.

Experience:
• 10 years minimum of professional experience;
• Similar work performed for SWM projects under PPP modalities (for the SWM
expert);
• ASEAN/Pacific region experience/location preferred (for the SWM expert);
• Should cover in particular: USW collection and landfill management (for the SWM
and E&S experts);
• Should include in-depth knowledge of national procurement and contracting
regulations (for the national engineer); and
• Ability to communicate in Tetum (speaking and writing) (for the national
engineer).

VI. CONSULTANT’S OUTPUTS AND DRAFT PAYMENT SCHEDULE

17. The Consultant is anticipated to be appointed up to 2 years to complete the

assignment. The detailed work schedule should be finalized in the inception stage, i.e. in
the first month of the Consultant’s mobilization. Key deliverables and timelines are further
described in Table 3 with Consultant’s payment schedule in Table 4.

Table 3 – Key Deliverables and Timelines

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 No. Key deliverables Deadline3
1 Consultants issued notice to proceed by ADB T
2 Quarterly progress reports (based on review of monthly/quarterly Within 10
reports submitted by each private partner, including assessment of working days
the project progress and reporting/addressing any issues that are after each
arising or outstanding) quarter end
3 Completion report (including a summary of the project status, issues Within 20
which require Authority’s attention, hand-over instructions to the working days
PMU among others) after T + 24
months
Estimated time period: 24 months

18. The payment schedule in Table 4 assumes that the two international experts will
spend his/her time in the field as reflected in the Table 5. Detailed Cost Estimates.

Table 4 – Consultant’s Payment Schedule

No. Milestone payment Approx. Percentage
of Total Fee
Report milestones
1 Approval of Updated issues list capturing list of 3.2%
outstanding issues and corresponding remedies for each
contract
2 Approval of Quarterly progress reports 8.1% for each report
(8 reports)
3 Approval of Completion report 6.5%
(1 report)
Sub-total Total # of reports = 10 74.5%
Project milestones
1 Approval of Collection Contract:
Completion of the Installation Services/ commencement 5.1%
of collection services for both Zones
2 Approval of Landfill Contract:
i) Approval upon completion and acceptance of the
construction of the Depot Area 5.1 % for each
ii) Approval upon completion and approval of the DED milestone event
iii) Approval upon completion of Stage 1 works; and
iv) Approval upon completion of Stage 2 works
Sub-total Total # of project milestones = 5 25.5%
Total 100%

3 T = Date of commencement of the TA.

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 Table 5 – Detailed Cost Estimates (in $)

Expense Items Remarks Qty Unit Amount Total

Remuneration
International Experts
SWM Specialist 332 working days 800 265,600
E&S Specialist 28 working days 850 23,800
National Experts
Engineer 480 working days 120 57,600

Out-Of-Pocket Expenses
Per Diem
SWM Specialist Dili 56 working days 240 13,440
E&S Specialist Dili 14 working days 240 3,360
International Airfare
SWM Specialist 8 roundtrip 5,000 40,000
E&S Specialist 2 roundtrip 5,000 10,000
Miscellaneous Travel Expense 10 units 200 2,000
Report Preparation, Production,
Transmission w/ translation 1 5,000 5,000
Contingency 30,000

Total Contract Amount 450,800

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