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Pre Qualification for Contractors of Drinking Water - PowerPoint

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					   CONFERENCE ON PMS
FOR RURAL WATER SCHEMES

      Presentation on
     Rural Water Policy
        Jim Ganley,
 Assistant Principal Officer
  Water Services Section
          Rural Water Programme
• Launched in February 1998
• Based on partnership between the 3 key stakeholders
      -     The GWS Sector
      -     The local authorities
      -     The Department
• National Rural Water Monitoring Committee
      -     representative of stakeholders
      -     independent Chair, Dr. Tom Collins
      -     advises Minister on policy and implementation.
• County Monitoring Committee
      -     draw up County Rural Water Strategic Plan
      -     monitor implementation at County level
      -     make recommendations to NRWMC
        Rural Water Programme

 The Rural Water Programme is administered by
 the local authorities and is comprised of a number
 of measures to address deficiencies in;

- group water schemes
- small public water and sewerage systems in rural
  villages
- private individual supplies where an alternative
  group or public supply is not available
             Rural Water -
           Drivers for Change


• New Drinking Water Regulations
• Water Services Bill - Regulation/Licensing
• Resources - €644 million under NDP
• Partnership - NRWMC, CMC’S, NFGWS
• Strategic Rural Water Plans
• New procurement based on DBO/Bundling
• Monitoring of 800 private sources
                  Work Programme 2002
Allocation of €60m to County Councils on February 8th 2002

  -    €40m - GWS Capital Grants             (100% for DBO treatment,
                                            85% grants subject to €7619 max)
  -    €14     - Small Public Schemes       (€634,000 max)
  -    €6      - Takeover of GWS’s

Provision of €10m for
  -    Individual Well Grants
  -    SRWP’s
  -    Piloting of water treatment and waste water
       treatment technologies
  -    Monitoring of source water and drinking water in group schemes
  -    Grants to NFGWS, NRWMC etc

Local Government Fund to finance
  -    admin costs
  -    subsidy towards operational costs (€102/ house or €197 with O&M)
             National Source Monitoring
Number of Sources & Schemes Serving > 15 Houses
    County                Sources     Schemes
    Carlow                15          15
    Cavan                 28          28
    Clare                 13          12
    Cork North            18          17
    Cork South            16          11
    Cork West             7           7
    Donegal               28          28
    Galway                135         134
    Kerry                 15          15
    Kildare               7           7
    Kilkenny              19          18
    Laois                 25          16
    Leitrim               27          27
    Limerick              70          49
    Longford              10          10
    Louth                 10          10
    Mayo                  146         145
    Meath                 2           2
    Monaghan              13          12
    Offaly                21          19
    Sligo                 15          15
    Tipperary Nth         48          40
    Tipperary Sth         4           3
    Waterford             4           4
    Westmeath             2           2
    Wexford               12          8
    Wicklow               13          10
    TOTALS                723         664
                    National Percentage Non-Compliance
80


70


60


50


40


30


20


10


0
                                                                  Mn
     Al




                              Conductivity




                                                                                    Nitrite
                                                                          Nitrate
          Ammonia




                                                                                                                   pH
                                                                                                       Turbidity
                                                       Fe
                                             F.Coli




                                                                                              T.Coli
                     Colour




                                     National Percentage Non-Compliance
   Rural Water DBO - the background

• Piloted in Co Roscommon
   – 21 schemes
   – disinfection only

• DB for larger projects
   – Glasslough/Tyholland (Ozone, mixed media, filtration)
   – Bohola & Belderrig (membranes)
   – Clifferna, Pollacat Springs, Cavetown Lake

• Monaghan Pilot DBO Project
   –   up to 14 schemes
   –   separate O&M
   –   wide interest from private companies
   –   VFM and economies of scale
          DBO - Rural Water
• CLIENT for D/B element may be one or more group
  schemes plus the county council
• Cost of Design and Procurement of Treatment
  plants paid through L/A -
      100% for treatment element
       85% for civil works
• CLIENT for O&M element is the group scheme
  itself
• Responsibility under Drinking Water Regs;
  regulation/licensing etc rests with the group
• Responsibility for paying contractor over the O&M
  period rests with group
• L/A may facilitate through instalment payment of
  subsidy
 Procedures Manual on the Procurement
      of Water Treatment Plants

• Bundling concept, critical mass, VFM
• Planning and Environmental issues.

• Appointment of Clients Representative.

• Tendering of DBO Contracts, Tender Documents

• Shortlisting of Contractors

• Tender Evaluation & Contract Award

• Construction, O&M (Service Phase)
          Appointment of Technical Advisers
                   DBO > €499,362                           DBO < €499,362
              Utilities Directive (OJEC)                   National Procurement

                                            Local Authority
                                       *PrepareConsultants Brief
                           *Contract     Notice in OJEC/National Press

                                        Issue Information Note

                                         Set Up Selection Board
                                -   Director of Service and/or
                                -   SEE or SE
                                -   DOELG Rep
                                -   NFGWS Rep

                    Shortlist to 5 on Basis of
                    •Economic and Financial Criteria
                               - Bankers Statement
                               - Extract from Balance Sheet
                               - Turnover in past 3 years
                    •Technical Capability
                               - experience of similar projects in last 5 years
                               - professional qualifications
                               - manpower and resources

*Drafts available with Manual
Appointment of Technical Advisers (2)
        Issue Brief to Shortlisted Candidates



        Await Receipt of Detailed Submissions


              Interview Candidates


              Place in order of merit
             Select Technical Adviser
            (Highest Placed Candidate)


                  Negotiate Fee


           Appoint Technical Adviser
Tendering of DBO Contracts for Water Schemes

           DBO > €6,242,028                      DBO < €6,242,028
   Utilities Directive OJEC Notice              National Procurement


                    Prepare Pre-Qualification Document

                       Notice in OJEC/National Press
                      Inviting Expressions of Interest

                            Shortlist on Basis of
                       Economic/Technical Information

                          Issue Tender Documents to
                            Shortlisted candidates

                                Tender Period


                      Submit Tenders to Liaison Officer
Pre-Qualification Documents/Questionnaire

Criteria for Qualitative Selection
• Financial & Economic Standing
   - Bankers statement that applicant is financially capable of
   project
   - Audited financial statements for 3 years
   - Turnover for previous 3 years
• Applicants Technical knowledge/ability
   – 3 water treatment plants over 3 years
   – operational experience
   – suitable management, technical staff etc.
• Performance Bond
   – 25% of contract price for DB
   – Bond for performance over 20 year O&M
Tender Evaluation & Contract Award
                           Compliant Tender
                              (checked)


    Technical Evaluation                      Financial Evaluation


                                      Capital Cost        Operating Cost

                                                Whole Life Cost

     Technical Ranking                         Financial Ranking


                  Overall Ranking of Tenders




• Prepare Tender Evaluation Report
• Submit to DOELG
• Approval/Award of Contract
              DBO - Why Bundle
• 500 Schemes requiring treatment for ongoing
  compliance with Drinking Water Regulations
• Choice of 500 individual projects versus 50 bundled
  projects
• Regs include schemes from 15 houses or more (min.
  critical mass is 300)
• Capital cost reduced significantly - 20% plus apparent
  at present
• O&M cost savings of 20%
• Attractive to Contractors with a proven track record
• VFM and protects State’s investment
           DBO - The Next Step
• Identify schemes requiring treatment based on results
  of National Source Monitoring Programme and EPA
  Reports
• Identify solutions based on county strategic rural
  water plan
  -   connect to public mains
  -   provide stand alone treatment
  -   amalgamate with adjacent groups
• Minimum Critical Mass is in the region of 300 houses
• Ideal Bundle is 1000 houses + Monaghan bundle in the
  region of 6000 houses.
Monaghan Pilot Project for Water Services
                           Objectives
•   To assess merits of DBO procurement for both public
    and group schemes
•   To facilitate bundling
•   To provide critical mass for VFM
•   Facilitate independence of group schemes through
    individual O&M Contracts.
                        Current Position
•   11 group water schemes, 9 with no treatment
•   3 small public schemes
•   demand ranged from 160 M3/Day to 1900 M3/Day
•   Each group with own consultant
•   No possibility of amalgamation/ rationalisation
                     RESULTS

• 9 consortia expressed interest to tender
• 5 shortlisted contractors, 4 bids received
• Contract awarded to Bowen/Vivendi
• Significant price difference in tenders
• Average operational cost of €1.28/1000 gals
• Prices ranged from €0.90 to €1.61/1000 gals
              DBO - Operation and
              Maintenance Contract
Estimate of Unit Costs for Fourteen Schemes - Year 1
                  Annual      Annual       Unit cost    Unit cost
 Scheme Name     Current    O&M Charge     of water     of water
                 Demand         €           (€/m3)     (IR£/1000
                 (m3/day)                                gals.)
Aughnashalvey      730        75519.18       0.283        1.01
Barraghy           591        74901.22       0.347       1.24
Churchill/Oram     700        69470.24       0.272       0.97
Corduff            680        76377.38       0.308       1.10
Donnaghmoyne      1900       137590.66       0.198       0.71
Doohamlet          730        78236.87       0.294       1.05
Drumgole           797        80701.22       0.277       0.99
Inniskeen*         160        41945.41       0.718       2.57
Killany           1600       121698.60       0.208       0.75
Newbliss*          210        44950.54       0.586       2.10
Smithborough*      120        28852.31       0.659       2.36
Stranooden        1100       122138.63       0.304       1.09
Truagh             790        81074.27       0.281       1.01
Tydavnet           350        45229.16       0.354       1.27
     Totals      10,458     1,078,685.68   Average =   Average =
                                             0.283     IR£1.01
                 Bundling and VFM
• Size matters; Average unit cost for production of water
  decreases according as unit size increases.
• Fixed time related charges strongly aligned to unit size.
Monaghan Pilot Project (14 schemes)
Percentage increase in fixed time related operation charge
(3 lowest tenders)

        No of Schemes                      Percentage Increase
               14                                     0
               13                                   5.6
               12                                  13.5
               11                                  22.5
               10                                  33.5

As a result of a drop in number of participants from 14 to 10, average
   unit cost of water production increased from IR£1.01 to IR£1.31
   per 1000 gals or €1.28 to €1.66 per 1000 gals.
               DBO - Procurement
• ALL water treatment facilities must be procured using DBO -
  public procurement
• Public procurement applies to all stages
    -    securing services of Employer Representative
    -    Consultants
    -    DBO Consortium, Contractors
•   L/A to advise groups at earliest possible date of public
    procurement requirements.
•   Dept and WSNTG to issue Guidance Manual on procurement (Sept)
•   Rollout and training at Regional Training Centres
•   WSNTG to issue DBO contracts (Service Phase) Performance
    Management System – “PMS”
    -    Conference Wednesday 18 September 2002
             Rural Water Programme
                       Check List
• Determine which schemes require upgrading
• Prioritise and agree solution based on SRWP and source
  monitoring results
• Put together a programme of work that is realistic,
  achievable and cost effective
• Use DBO and bundling to maximum effect
• Advise DOELG of DBO/Bundling funding requirements
  a.s.a.p.
   CONFERENCE ON PMS
FOR RURAL WATER SCHEMES

      Presentation on
     Rural Water Policy
        Jim Ganley,
 Assistant Principal Officer
  Water Services Section

				
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