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
From: Neil Tangri [mailto:firstname.lastname@example.org]
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
>I wonder if any of you should have some insights/ideas/experiences
>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
>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
>City of Cebu (Philippines) to construct and operate a new
>"environment-friendly" landfill. Needless to say, we are going to
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