RE: [GRRN] foreign BOT landfill project

From: Jo-Walter Spear, Sr. (
Date: Fri Jul 07 2000 - 08:48:13 EDT

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    Build-Operate-Transfer (BOT) is a financing mechanism that, by
    itself, neither encourages nor discourages waste segregation or
    recycling. The contract between the City of Cebu (Cebu) and SNC
    Lavalin (SNC)should include Cebu's expectations for the service level
    and service quality that will be provided by SNC throughout the
    contract in addition to the financing mechanism. The contract should
    also specify the frequency and mechanisms for Benchmarking the
    services under the contract and the mechanism by which the contract
    terms will be monitored by Cebu.

    It is in the service description, service level, service quality, and
    benchmarking areas of the contract that Cebu would describe their
    vision of a successful relationship with SNC. This would include
    Cebu's concern for source segregation among other issues that
    constitute Cebu's Critical Success Factors for the relationship. The
    discussion of each parties Critical Success Factors (CSF) should
    occur early on in the procurement process. For the project to be
    successful, the CSF's should be incorporated in the design phase of
    the project (this should not be limited to the facility design) and
    carried through to the execution of contract.

    My experience (25 years) has been that most contracts ignore
    recycling, or source segregation, or some other issue or set of
    issues because the municipal party identified its CSF's, gave some
    thought to service level and quality, and recognized the importance
    of benchmarking and monitoring after contract execution. This
    problem with service contracts is not inherent to any financing
    mechanism, in fact it spans the various approaches municipalities
    have for financing.

    Opposing this new landfill is not enough. To meet what I assume
    could be some of your CSF's, you must also become involved in the
    procurement process to assure that, should your opposition fail, the
    terms of the relationship between Cebu and SNC protects the CSF's
    that Cebu and your organization hold to be valuable.

    To become involved at the beginning is ideal, but involvement at any
    stage is good. Your involvement would be to encourage Cebu to
    identify and articulate its CSF's for this particular procurement and
    to see that they became elements of the contract in terms of service
    quality and service level requirements, benchmarking elements and
    subjects of contract monitoring.

    Don't fall into the trap that concern for the relationship between
    the parties and opposition to the facilities represents a logical
    inconsistency. They are actually complimentary approaches.


    J W Spear, Sr., P.E.

    J Spear Associates, LLC
    2010 North First Street
    Milwaukee, WI 53212
    Telephone (414)263-5715
    Facsimile (414)263-2982
    Mobile (414)732-6489

    -----Original Message-----
    From: Neil Tangri []
    Sent: Thursday, July 06, 2000 6:36 PM
    Subject: [GRRN] foreign BOT landfill project

    >Date: Mon, 03 Jul 2000 14:16:46 +0800
    >Subject: [Cleanpro-intl] foreign BOT landfill project
    >Dear friends,
    >I wonder if any of you should have some insights/ideas/experiences
    in terms
    >of landfills that are build and operated under a
    >system. Doesn't it discourage waste segregation at source of
    >Isn't the collection of user fees the easiest/only way for the
    company to
    >recover its investment? Do any of you have experience with similar
    >BOT landfill projects in your countries?
    >SNC Lavalin, a Canadian engineering & construction company, is
    offering the
    >City of Cebu (Philippines) to construct and operate a new
    >"environment-friendly" landfill. Needless to say, we are going to
    >Best regards,

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