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AWT STEP-BY-STEP GUIDE
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AWT STEP-BY-STEP GUIDE
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Home/Step by Step Guide

Welcome to the Alternative Waste Treatment (AWT) Guide

Work your way through the four steps below to create your alternative waste treatment plan.

Click on a step in the left panel and explore the sub-sections by expanding and collapsing the heading toggles in the right panel.

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  • STEP 1: PLAN IT
  • STEP 2: DESIGN IT
  • STEP 3: IMPLEMENT IT
  • STEP 4: MANAGE IT
4.5: Measure and evaluate performance outputs, outcomes and improve operations
Monitoring, auditing, performance evaluation and reporting at micro and macro levels.
  Explanation   Get more detail
It is important to measure how well your operation is performing. Regularly measure performance to generate reliable data on the effectiveness and efficiency of programmes and to assess how well you are meeting your goals and objectives.

Performance can be measured as shorter-term activity-specific output measures or as longer-term higher-level outcome measures.

Figure 7 illustrates these different levels of detail at which performance monitoring can take place.

Performance measures of outputs and outcomes, National Oceanic and Atmospheric Administration, US Dept of Commerce (NOAA). How to write great performance measures – John Bortniak. Nov 2012. [Link]

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Figure 7: The performance measurement continuum

Source: NOAA How to write great performance measures – John Bortniak Nov 2012

Build these performance measures into your ongoing monitoring, evaluation and reporting of accomplishments and progress towards strategic objectives to:

  • Prepare a monitoring and evaluation plan.
  • At detailed activity/facility level, measure outputs, gather data to track operations.
  • Review against legal requirements, targets and goals set in the planning stage and adopt improvement measures.
  • Check strategic level, longer term outcomes against broader strategic organisational /departmental goals.
  • Decide what new actions are needed to improve operations.

Output: Outputs are products and services delivered, a completed product of a specific activity, whether executed internally by the organisation or by an external contractor and often stated as the amount of products and services delivered during one reporting period (for example, a year).

Output information does not tell you anything about the actual results achieved or the consequences of the products and services delivered. Output information is important to show the scope or size of what the inputs and activities produce.

[Hyperlink from ‘4.5: RESOURCE BODY’ to:]

Outcome: An outcome represents a specific result a programme is intended to achieve, or can also be defined as the specific objective of a specific programme.

An outcome is not what the programme actually produced itself (the output), but the consequences of those products, services, or assistance.

It is also important to distinguish between end outcomes (objectives), on one hand, and intermediate outcomes (intermediate results), on the other.

End Outcomes (Objectives)

This is the highest-level objective towards which a programme works. The end outcome is what the programme has been designed to achieve ultimately and should be the most ‘ambitious’ outcome or result programme managers can materially affect or influence and for which they are willing to be held responsible.

Intermediate Outcomes (Intermediate Results)

An intermediate outcome or intermediate result is a critical outcome or result that must occur to reach the higher-level, end outcome/objective, before you can achieve the end outcome/objective. There could also be a sequence of intermediate outcomes, which must be attained, to achieve the end outcome.

Sub-Walkthrough

Jump to section:

  • 4.5.1: Measure performance and check compliance with all requirements
  • 4.5.2: Check outputs at operational level
  • 4.5.3: Check outcomes at organisational level
  • 4.5.4: Reporting and improvement measures

4.5.1: Measure performance and check compliance with all requirements

Monitoring and compliance auditing
  Explanation   Get more detail
Waste Facility Monitoring

Monitoring must be done according to a scheduled monitoring programme. The programme must explain:

  • what to measure-– measurable indicators
  • how often measurement will be required
  • who will measure and
  • the required outcome

Auditing

An audit is a systematic and independent examination of documentary evidence and a site inspection to determine how well a facility is operated and whether it complies with required standards and regulatory requirements, for example the conditions of a waste management licence, or a financial audit.

Monitoring is the process that measures various performance indicators to see how well a facility is operating. Different indicators are monitored depending on the type of activity or operation, and depending what performance area is to be assessed. Examples of what could need monitoring would be:

  • Contract conditions met where external service providers are appointed.
  • Staff members’ achievement of key performance indicators relating to their job descriptions.
  • Waste data recorded and input into a Waste Information System (WIS)and checked against targets.
  • Environmental, health and safety compliance monitoring and auditing relating to the requirements set out in the Environmental Authorisation (EA) or Waste Management Licence (WML) and implementation of the Environmental Management Programme. Compliance with regulations, licence conditions, norms and standards:
    • waste inputs and diversion from landfill WIS, climate change benefits
    • water quality
    • air quality
    • biometric monitoring of health
    • socio-economic aspects
  • User participation levels as an indicator of public awareness and buy-in.
  • Increase in service provision – collection coverage, number of households serviced.
  • Cashflows, budget tracking, market-related aspects, financial records – financial viability of the operation.

Figure 8 outlines the auditing process.

Hyperlink to: [Link]
Figure 8: The auditing process

An audit is like a snapshot of the conditions or standard of operation at a point in time.

During audits the results of monitoring are consolidated and checked against standards for operation, for example thresholds for environmental parameters. A facility should be subjected to both internal (by organisation’s own staff) and external audits (by independent outside auditors) carried out regularly. The auditor formulates an opinion on the basis of his/her judgement which is communicated through an audit report.

4.5.2: Check outputs at operational level

Evaluation of specific, often measurable, outputs that relate to legal compliance requirements, standards and targets for specific activities and processes.
  Explanation
This could include:

  • Review of monitoring and auditing outputs to determine trends in standard of operation.
  • Review of key performance indicators for each waste management functional element in line with the Waste Act.
  • Evaluation of performance in terms of the output measures.

Review data and reports at outputs level e.g. consolidation of audit findings that determine performance trends and progress towards achievement of specific operational targets.

Example:

Analysis/measurement of standardised, operational records for infrastructure and equipment is done routinely on a regular basis (monthly, quarterly, annually) to detect system degradation and the need for repairs. This means that maintenance is carried out timeously to ensure that the quality of operations remains acceptable [link to Walkthrough 4.3 and Walkthrough 4.5, Step 4.5.2]

4.5.3: Check outcomes at organisational level

Evaluation of outcomes at strategic level to move the municipality towards achieving its high-level goals, policy objectives and targets.
  Explanation   Get more detail
Outcomes are evaluated at strategic planning level, for example review of the Integrated Waste Management Plan (IWMP) implementation; IDP budget tracking; performance management review by Auditor-General and review of delivery of service provider contracts that relate to agreed performance standards.

The MFMA, together with the Municipal Systems Act, 2000, aim to facilitate compliance with this constitutional duty by ensuring that municipalities’ priorities, plans, budgets, implementation actions and reports are properly aligned.

The processes and reporting at the sectoral level e.g. for the waste management function, feed into these macro level processes (Figure 9) [Hyperlink to Local Government Budgets and Expenditure…]

Hyperlink to Local Government Budgets and Expenditure Review Ch.5 Financial management and MFMA implementation. 2011 [Link]
Figure 9: Municipal financial management and accountability cycle

Source: 2011 Local Government Budgets and Expenditure Review Ch 5 Financial management and MFMA implementation

Figure 9 shows the main components of the financial management and accountability cycle and how they ought to be aligned:

  • Integrated development plan (IDP): This sets out the municipality’s goals and development plans, which need to be aligned with the municipality’s available resources. Council adopts the IDP and undertakes an annual review and assessment of performance based on the annual report.
  • Budget: The three-year budget sets out the revenue raising and expenditure plan of the municipality for approval by council. The allocation of funds needs to be aligned with the priorities in the IDP.
  • Service Delivery and Budget Implementation Plan (SDBIP): The SDBIP sets out monthly or quarterly service delivery and financial targets aligned with the annual targets set in the IDP and budget. As the municipality’s ‘implementation plan’, it lays the basis for the performance agreements of the municipal manager and senior management.
  • In-year reporting: The administration reports to council on the implementation of the budget and SDBIP through monthly, quarterly and mid-year reports. Council uses these reports to monitor both the financial and service delivery performance of the municipality’s implementation actions.
  • Annual financial statements: These report on the implementation of the budget and reflect the financial position of the municipality. They are submitted to the Auditor-General, who issues an audit report indicating the reliance council can place on the statements in exercising oversight.
  • Annual report: This is the primary instrument of accountability, in which the mayor and municipal manager report on implementation performance in relation to the budget and the SDBIP, and the progress being made in realising the IDP priorities.
  • Oversight report: Council produces an oversight report based on outcomes highlighted in the annual report and actual performance.

Figure 9 also highlights how the level of accuracy of the information set out in each of the accountability documents depends on a municipality having a properly aligned organisational structure; sound policies, processes and procedures (including performance management); and implementing a standard chart of accounts.

The IDP is reviewed annually and fully updated by new councils, usually every five years.

Similarly, the implementation of the integrated waste management plan, IWMP, is also reviewed annually but fully reviewed and revised approximately every five years.

4.5.4: Reporting and improvement measures

Fulfilling reporting requirements of the municipality, funders and regulatory authorities.
  Explanation   Get more detail
There are different requirements according to the municipal processes and regulatory requirements to ensure that the facility operator and municipality remain accountable and run an efficient and safe operation. The performance reporting for the waste treatment operation would be included in the financial, environmental and human resource development performance reports as required by the municipal governance structures [MSA]

Reports include the following:

At micro-level

  • monthly reports – operational
  • annual reports
  • internal audit reports
  • external audit reports
  • financial management

At macro-level

  • IWMP review
  • IDP annual performance review in line with the priorities, objectives, indicators and targets contained in the IDP
  • Auditor-General report

The reporting identifies remedial and improvement measures which feed into the next planning and implementation cycle starting at Walkthrough 1, at a higher performance level. In this way, a municipality can successfully deliver services and strive towards continuous improvement.

Hyperlink to MSA Section 34 and Chapter 6 [Link]
Annual report – a statutory tool in the accountability loop for municipalities submitted to the Auditor-General of SA the annual report should:

  • describe actual results and compare them with planned results for performance against budget and strategic plan, explaining any significant variances in performance against targets.
  • include information about factors critical to understanding performance, including identifying significant risks, capacity considerations, and other factors that have had an impact on performance and results
  • link financial and non-financial information to show how resources and strategies influence results
  • Include health and safety and environmental issues
  • describe variances between actual performance against (adjusted) budget with explanations for material variances in notes, and
  • can assist in assessing the cost of service delivery (performance information per programme vs. allocations and spending)

Reporting on implementation monitoring and review of IWMP is required in terms of NEMWA Section 13 (3) for annual input into the IDP in terms of section 46 of the MSA and the municipal performance management system.

This information should include:

  • the extent to which the IWMP has been implemented in relation to waste management initiatives undertaken
  • waste management service delivery
  • the level of compliance with the IWMP and WM standards
  • measures taken to ensure compliance
  • waste management monitoring, budget tracking, attainment of goals and targets set in the IWMP

The planning period for the IWMP is usually 5 years after which an updated IWMP should be prepared.

  • Hyperlink to: Using the annual report as an oversight tool
    Presenter: National Treasury, Office of the Accountant-General. July 2014 [Link]
  • Hyperlink to locally-hosted pdf (already provided): Guideline for the Development of IWMPs. DEA.

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      4.4: Keep the finances on track Manage the financial aspects of the operation
      Manage the financial aspects of the operation
        Explanation   Get more detail
      To manage the financial aspects of your operation, you must be able to track and interpret:

       the full costs of your AWT operation

      • a register of assets
      • data on budgeted and actual operating costs
      • other ‘hidden’ costs incurred in different municipal departments

       revenues and gate fees

       budget control, balance sheet, cashflow, forecasts

      markets, waste quantities, efficiency of operation, economic viability

      This information is especially important if the operation is being run by an external service provider.

      Hyperlink to locally-hosted KP4 (Already provided): KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

      Hyperlink to Municipal Finance Management Act. Local Government Capital Asset Management Guideline. 2008. National Treasury [Link]

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      Sub-Walkthrough

      Jump to section:

      • 4.4.1: Work out what it costs to run the operation
      • 4.4.2: Keep track of your income
      • 4.4.3: Keep track of your financial performance
      • 4.4.4: Ensure that the operation remains economically viable

      4.4.1: Work out what it costs to run the operation

      You need to know the full cost of the specific treatment option
        Explanation   Get more detail
      It is good practice to calculate costs based on activity, separated for each individual component of the service [KP4 and 5] –

      • cost of collection
      • cost of treatment, including the alternative waste treatment option
      • cost of transport
      • cost of disposal
      • total operation cost

      A typical operating cost structure for waste management services includes direct labour, fuel, utilities, supplies and mechanical maintenance and repair costs. There may also be hidden costs in other budget lines, or may be part of an overall overhead that is not attributed to waste management.

      • Hyperlink to locally-hosted KP4 (Already provided): KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016
      • Hyperlink to locally-hosted KP5 (Already provided): Operator Models and Business Opportunities in Advanced Waste Treatment for SA: Guidance. DEA. 2016.Concept Draft]
      The general ledger is typically the source of information about operational cost elements, but it does not break those cost elements down by activity performed [Asset Management Framework…].

      This would still have to be done in a cost accounting exercise per activity including:

      • salaries, employee benefits and overtime
      • staff training
      • protective clothing
      • rental/lease of workshop or depot space
      • vehicles and other specialist capital equipment
      • general tools and equipment
      • parts and other consumables
      • contractors
      • electronic maintenance management system (e.g. annual licensing fees)
      • utilities (e.g. water and electricity)
      • general administration (including management, customer support centre, administrative support, office stationary, communication expenses etc.) and
      • laboratory testing.

      Costs of different utilities or service elements are often aggregated / recorded in different departments of the municipality but are important to consider once a service is outsourced or new investments are made.

      This situation fosters uncertainty in decision-making and sends incoherent signals to the private sector – thus creating a market barrier for the development of AWT. Sometimes, when an operation is contracted out, the operators might wish to keep data confidential.

      Read more: Full cost accounting, activity based accounting and revenue sources are discussed at length in the Solid Waste Tariff Setting Guidelines for Local Authorities [  ] and online Model  and user guide for tool.

      • Hyperlink to: Maintenance Accounting Framework for Immovable Assets under the Custodianship of National and Provincial Departments of Works. National Immovable Asset Maintenance Management. DPW CIDB 2015 [Link]
      • Hyperlink to Asset Management Framework. National Treasury [Link]
      • Hyperlink to Municipal Finance Management Act. Local Government Capital Asset Management Guideline. 2008. National Treasury [Link]
      • Hyperlink to CIDB National Infrastructure Maintenance Strategy (NIMS) Infrastructure Maintenance Budgeting Guideline 2009 [Link]
      • Hyperlink to locally-hosted DEA Solid Waste Tariff Setting guidelines for Local Authorities May 2012
      • Also hyperlink to DEA resources: [Link]; [Link]; [Link]; and [Link]

      4.4.2: Keep track of your income

      You need to know what money is coming in as revenues and gate fees
        Explanation   Get more detail
      The revenues for AWT are diverse, and depend on the specific outputs. Most AWT facilities will need to complement revenue sources from economic incentives, grant financing, public financing or gate fees. Carbon financing can be a significant revenue source.

      Whenever a new technology is introduced, the need to adapt the collection system should also be looked at. Organising collection of source-separated materials and/or introducing transfer stations may be needed depending on the technology selected.

      Waste disposal gate fees are mostly designed to cover the operation costs, and at times may also include capital depreciation and interest costs. The average landfill gate fee nationwide is approximately 150 ZAR/tonne.

      • Carbon financing Hyperlink to Walkthrough 3.1, Step 3.1.3.6
      • Hyperlink to locally-hosted KP4 (already provided): KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016
      Case Studies:

      KP4 CCT Kraaifontein; The major share of income is generated from the price per tonne received from the municipality. An agreement is in place to share avoided costs of landfill between the municipality and operator.

      Need for subsidies – Naledi Buy-back Centre, Jhb (Pikitup) [KP4]

      The two case studies illustrate that operating a Materials Recovery Facility (MRF) irrespective of the facility being manual or automated or a combination of both, is a viable alternative when avoided costs of landfill are taken into consideration. For success, the facility should receive a gate fee for operating the MRF, set equal to or below the landfill gate fee, set for operational cost recovery.

      • Case study in locally-hosted KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016. See Appendix for Kraaifontein facility and case studies
      • KP4: Hyperlink to locally-hosted KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

       

      4.4.3: Keep track of your financial performance

      Financial analysis
        Explanation   Get more detail
      The financial aspects of AWT operations must be analysed and reviewed on an ongoing basis according to the municipality’s standard protocols and General Accounting Practice.

      The choice of treatment option has financial implications which must be analysed using standard processes which provide statements of financial position, budget tracking and cashflow.

      KP4: Hyperlink to locally-hosted KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

      4.4.4: Ensure that the operation remains economically viable

      Economic viability will depend on economies of scale, marketability of products and efficiency of operation.
        Explanation   Get more detail
       Economies of scale: The full operational cost per tonne will reduce as larger quantities are processed.

       Markets for products and outputs: Products and outputs must meet market demands.

       Efficiency of operation: optimise productivity and minimise wastage.

       

      Skills development and extensive waste awareness programmes must focus on bringing in as much treatable waste as possible to achieve economies of scale. Collection coverage should be extended as far as possible.

      Markets must be developed and secured in partnership with the private sector operators.

      Alternative waste treatment projects will usually need some sort of subsidy to make them financially sustainable. A subsidy will be justified if an AWT option shows strong economic viability or positive social impact, for example employment creation. Read more … [hyperlink to KP4]

      It is crucial for the municipality to be able to meet the ongoing operational and maintenance costs for the AWT option to be successfully implemented. There is often an operational expenditure (OPEX) gap when alternative waste treatment options first start up. This makes it necessary for municipalities to allocate a portion of their operational budget towards subsidising the operator of the facility, who is likely to be a contracted private sector operator. In addition, if the project capital expenditure (CAPEX) is funded by concessionary or commercial loan agreements, the annual loan repayments will be an additional cost in their OPEX budget.

      The municipality should structure operational contracts to share the costs with the private contracting parties who would be undertaking all or some of the work. The recovery of all OPEX is the single biggest threat to the sustainability of AWT technologies in the long-term. Therefore, it is recommended that any envisaged gap in OPEX recovery must be suitably covered by some form of public sector guarantee by the municipal authority, as owners of the AWT technology/plant and custodians of the waste, to ensure the viability of the AWT technology going forward.

      • Hyperlink to locally-hosted KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016  p.58
      • Hyperlink to locally-hosted KP5 (already provided): Operator Models and Business Opportunities in Advanced Waste Treatment for SA: Guidance. DEA. 2016. Concept Draft]

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      4.3: Operate the facility safely and effectively
      Operations maintenance must ensure the economic, effective and safe use of available resources, within each municipality’s financial and administrative capacity.
        Explanation   Get more detail
      The Municipal Systems Act (MSA) clearly indicates that municipalities must ensure that municipal services are provided to local communities in a financially sustainable manner, including the maintenance, repair and replacement of physical assets (sections 1 and 4 of the MSA Act) [..].

      National Treasury regulations:

      Asset management is the responsibility of the Accounting Officer [Section 38(1)(d) of the PFMA]

      Ensure that proper control systems exist for assets and that (a) preventative mechanisms are in place to eliminate theft, losses, wastage and misuse; and (b) stock levels are at an optimum and economical level.

      10.1.2 The accounting officer must ensure that processes (whether manual or electronic) and procedures are in place for the effective, efficient, economical and transparent use of the institution’s assets.

      • Hyperlink to MSA sections 1 and 4 of the MSA Act : [Link]
      • Hyperlink: Guidelines for Infrastructure Asset Management in Local Government [Link]
      • Hyperlink: National Treasury Regulations for departments, Constitutional Institutions and Public Entities Issued in terms of Section 38(1)(d) of the Public Finance Management Act, 1999. National Treasury Republic of South Africa. April 2001 [Link]

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      Sub-Walkthrough

      Jump to section:

      • 4.3.1: Maintain the facility
      • 4.3.2: Standardise operational processes and procedures
      • 4.3.3: Work safely

      4.3.1: Maintain the facility

      Maintenance management
        Explanation   Get more detail
      A planned approach to maintenance will ensure that the delivery of maintenance services, such as routine inspections, and servicing are undertaken in a manner which minimises disruption to the users of the asset and ensures that resources are used in the most cost-effective manner. It also ensures that the asset’s value is preserved.

      Municipal policy and procedures for operations and maintenance of assets, both movable and immovable, must be aligned with the National Infrastructure Maintenance Strategy (NIMS) [Hyperlink to NIMS]. Municipalities are required in terms of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA), Municipal Systems Act and other legislation to ensure that adequate provision is made for the long-term maintenance of infrastructure assets.

      Asset maintenance must be planned to enable targeted action to be taken in a timely and cost-effective manner. There are guidelines giving details for asset management [hyperlinks to National Treasury guidelines and DPW-CIDB guide]

      There are two types of maintenance, planned (preventive) and unplanned (corrective) maintenance (Figure 6).

      • Hyperlink to NIMS: The National Infrastructure Maintenance Strategy in support of ASGISA and government growth objectives. DPW, CSIR, CIDB. 2007. [Link]
      • Hyperlink to Municipal Finance Management Act. Local Government Capital Asset Management Guideline. 2008. National Treasury [Link]
      • Hyperlink to: Contractor Development in The Maintenance Industry for Immovable Assets Under the Custodianship of National and Provincial Departments of Works. National Immovable Asset Maintenance Management. DPW-CIDB. 2015. [Link]
      • Hyperlink Figure 6 elements to ‘Walkthrough 4.3, Step 4.3.1 Details’
      Figure 6: Maintenance planning process

      Source: Municipal Finance Management Act Local Government Capital Asset Management Guideline. National Treasury. 2008

      Planned preventative maintenance (slows deterioration or reduces possibility of failure):

      • Condition-based: This type of maintenance comprises servicing and maintenance actions based on analysis and experience and is subject to inspections, testing and monitoring.
      • Interval-based: Maintenance servicing is planned and scheduled at particular time intervals, (‘time-based’) or after a number of machine hours, number of outages, etc. This type of maintenance is informed by the manuals of the suppliers, but the frequency must be updated through the condition monitoring process.

      Corrective maintenance (breakdowns or failures):

      • Emergency maintenance as a response to breakdowns/failures. Emergency actions interrupt the preventative maintenance schedule to be performed and are planned and scheduled as they happen.
      • Planned maintenance consists of planned and scheduled actions that aim to prevent breakdowns and seek to eliminate the cause of repeated breakdowns or failures. This type of maintenance includes design modification.

      The National Infrastructure Maintenance Strategy (NIMS) promotes sound maintenance of infrastructure and facilities across the whole of the public sector, and sets parameters for all public sector institutions to perform against. This Strategy gives substance to present legislation, e.g. PFMA, MFMA and the Municipal Services Act, which places an obligation on accounting officers ‘for the management of the assets of the entity, including the safeguarding and maintenance of those assets’ (MFMA 96 (1) (a) – a similar requirement in the PFMA is 38 (1) (d)) [  ]. The strategy has been approved by National Cabinet and therefore provides a very strong mandate for infrastructure maintenance to be undertaken.

      The maintenance strategies must be converted into operation and maintenance plans. [Hyperlink Local Government Capital Asset Management Guideline (2008)]

      The Operational Plan includes the following:

      • Resources required to operate and maintain assets.
      • Responsibility for control of, access to and security of the asset (logistics management).
      • Operating policies (namely working hours, security, cleaning, energy management and the like).
      • The level and standard of performance required of the asset.
      • Arrangements for collecting, monitoring and reporting performance data.
      • Training staff in use of the asset.
      • Estimates of operating costs.

      The Maintenance Plan includes the following:

      • Definition of maintenance standards.
      • Allowance for the rectification of existing defects.
      • Description of the work to be carried out.
      • Forecast of the necessary maintenance, major repairs and preventative maintenance expenditure for the planning period.
      • Hyperlink to Standards Types of maintenance descriptions: Maintenance Management Standard for immovable assets under the custodianship of National and Provincial Departments of Works. DPW-CIDB 2015 [Link]
      • Hyperlink to NIMS strategy: DPW, CSIR, CIDB 2007. The National Infrastructure Maintenance Strategy. DPW Department of Public Works. RSA in support of ASGISA and government growth objectives. [Link]
      • Hyperlink to Maintenance Accounting Framework for immovable assets under the custodianship of National and Provincial Departments of Works. National Immovable Asset Maintenance Management. DPW, CIDB 2015 [Link]
      • Hyperlink to Municipal Finance Management Act. Local Government Capital Asset Management Guideline. 2008. National Treasury [Link]

      4.3.2: Standardise operational processes and procedures

      Provide standard operating procedures for day to day tasks.
        Explanation   Get more detail
      Procedures set out by the municipality for routine operations as well as those specified for specialised equipment, for example:

      • maintenance of different types of infrastructure
      • cleaning equipment after use
      • servicing equipment – for example oil changes
      • adapting equipment not functioning efficiently
      • re-calibrating equipment as appropriate
      • adjusting safety elements of equipment / tool / technology for example safety shields

      Analysis/measurement of operational records/facility/equipment on a regular basis (monthly, quarterly, annually) to detect system degradation, repairs. Specific repairs undertaken on a regular basis (annually), for example external wall painting, sealing windows, replacing corroded fittings, repairing external paved areas and rain damage [ ] [Also Hyperlink to Walkthrough 4.5, Step 4.5.4]

      • Hyperlink to Contractor Development in the Maintenance IndustryNational Immovable Asset Maintenance Management For immovable assets under the custodianship of National and Provincial Departments of Works 2015[Link to Walkthrough 4.5 Step 4.5.4 – reporting]

      4.3.3: Work safely

      Address health and safety aspects of the work environment
        Explanation   Get more detail
      Health and safety requirements are stipulated in the Occupational Health and Safety Act, 1993 (Act No. 85 or 1993) (OHSA). These requirements are supplemented by a number of regulations issued in terms of this Act. Compensation for injury, disease or death of a worker is governed by the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993). Both of these laws are administered by the Department of Labour.

      The Occupational Health and Safety Act is based on the principle that dangers in the workplace must be addressed by communication and cooperation between the worker and the employer. The worker and the employer must share the responsibility for health and safety in the workplace. Both parties must proactively identify dangers and develop control measures to make the workplace safe.

      A health and safety representative must be appointed to monitor health and safety conditions if there are 20 or more workers. There must be one H&S representative for every 50 workers. Representatives must be full-time workers who are familiar with the workplace.

      • Hyperlink to Occupational Health and Safety Act (Act 85 of 1993) OHSA and relevant regulations. [Link]
      • Hyperlink to Guidelines for Infrastructure Asset Management in Local Government 2006-2009. DPLG [Link]

      National Infrastructure Maintenance Strategy In support of ASGISA and government growth objectives Produced by:

      Department of Public Works Construction Industry Development Board Council for Scientific and Industrial Research 7 August 2006 [Link]

      These very important regulations to ensure workplace safety include requirements that: 

      • Nobody without a license must be allowed to drive any vehicle.
      • Nobody without training must be allowed to handle any power tools, equipment or tools, not even a spade.
      • In order to avoid accidents, workers and assistants should be taught to handle every individual implement, tool etc. in the correct way and be aware of all the dangers associated with it.
      • Staff must never perform a task not wearing the protective clothing as prescribed per activity, which may be boots, hand gloves, eye protection, ear protection, etc.
      • Maintenance and servicing of major equipment must be undertaken for example:
        • cleaning and storage of equipment and implements
        • re-calibration of equipment
      • There must be a maintenance and servicing plan and requirements for all equipment.

      The Occupational Health and Safety Act, 1993 (Construction Regulations, 2014) [Step.3.4.2. ] requires the owner of any ‘structure’ (including municipal infrastructure such as bridges, waterworks, reservoirs, buildings, drainage works and roads) to maintain such structure in such a manner that ‘the structure remains safe for continued use and such maintenance records shall be kept and made available to an inspector upon request.’

      The OHSA also has comprehensive regulations relating to operation of plant and equipment, safety in the workplace, training, personal protective equipment (PPE), use of hazardous chemical substances, first aid etc. All of these must be complied with.

      There are also OHSA General Safety Regulations with specific requirements including those relating to:

      • personal safety equipment and facilities
      • first aid, emergency equipment and procedures
      • use and storage of flammable liquids
      • work in confined spaces
      • work in elevated positions
      • working in danger of engulfment
      • stacking of articles
      • welding, flame cutting, soldering and similar operations
      • ladders
      • ramps

      The General Machinery Regulations establish specific requirements for:

      • supervision of machinery
      • safeguarding of machinery
      • operation of machinery
      • working on moving or electrically alive machinery
      • devices to stop and start machinery
      • and so on

      The Driven Machinery Regulations provide specific requirements for the operation of machinery such as revolving machinery, circular saws, band saws, wood planing machines, sanding machines, grinding machines, air compressors, refrigeration and air conditioning installations, and so on.

      The Lift, Escalator and Passenger Conveyor Regulations establish requirements for the design and construction of lifts, escalators and passenger conveyors.

      The Vessels under Pressure Regulations establish requirements for the design, construction and manufacture of pressure vessels (for example boilers, a pressurised system, and so on).

      The Electrical Machinery Regulations establish specific requirements including those relating to:

      • safety equipment
      • work on disconnected electrical machinery
      • switch and transformer premises
      • switchboards
      • electrical machinery in hazardous locations
      • portable electrical tools and lights
      • electric fences
      • earthing
      • clearance of power lines
      • insulators and fittings
      • overhead service connections and conductors

      Reporting of incidents:

      • The OHSA requires that all incidents be reported within seven days to the provincial director of the Department of Labour.
      • If a person who is injured dies after the Department is notified, the death of the worker must be immediately reported to the Department.
      • No one may disturb the site of an injury or death, unless such disturbance is required to prevent a further incident, to remove the injured or dead, or to rescue persons from danger.
      • All contractors must report any accidents that result in medical expenses and/or a worker’s absence from work for longer than three days by submitting the required documents to the Compensation Fund within seven days. Employers must submit certain documents to the Compensation Commissioner within seven days of being notified. [Hyperlink to COIDA]
      • Contractors who delay in reporting an accident may be fined.

      Note: Employees may also obtain compensation for an occupational disease if the disease has arisen out of or in the course of his employment. If the occupational disease is aggravated by another disease, the employee may receive compensation for the treatment of the other disease as well. The employee must, within 12 months of being diagnosed with the disease bring it to the attention of the Commissioner, the contractor or Mutual Association concerned, failing which the claim will not be accepted and no compensation will be payable.

      • CIDB Contractor Management Guidelines; Section 3 Health and Safety plan p 15 [Link][Link to Walkthrough 3.4 Step 3.4.2 and 3.4.4 H&S Plan]
      • Hyperlink to COIDA Compensation for Occupational Injuries and Diseases Act (Act 130 of 1993) [Link]

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      4.2: Develop the know-how to operate the treatment facility safely and efficiently
      Provide training and awareness programmes to ensure that people understand, know and can do the right things to make the operation successful
        Explanation   Get more detail
      Except for very large metros, municipalities generally struggle to implement national waste policy because there is inadequate capacity and integration in the waste management functions. Municipalities are often under staffed and lack knowledge and experience in aspects such as public private partnerships. Focus needs to be placed on developing capacity of the municipalities as the future ‘clients’ of alternative waste treatment options.

       

       

       identify specific knowledge, skills and attitudes needed for the operating staff, including manager, supervisor and operational staff – Learning Needs Analysis

       draw up and implement a project-specific learning/skills development programme(s) for ongoing training of operational staff, supervisors and managers

      develop and implement public awareness programme for participating user groups of the facility

      Local Government: Municipal Systems Act, 2000 (Act No. 32 Of 2000) Draft Local Government: Guidelines for The Implementation of The Municipal Staff Regulations. 23 September 2016 GN 1073. Chapter 5. Skills Development [Link]

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      Sub-Walkthrough

      Jump to section

      • 4.2.1: Identify the gaps in knowledge, skills and attitudes at operational level
      • 4.2.2: Address the competence gaps with training
      • 4.2.3: Build awareness and participation levels

      4.2.1: Identify the gaps in knowledge, skills and attitudes at operational level

      Conduct a learning needs analysis (LNA) and a skills audit to evaluate the current level of knowledge and skills required for the staff of a specific operation.

      Figure 4: Learning Needs Analysis process

      Figure 4 shows the learning needs analysis process

      Identify those who are to receive training and their existing education and experience profiles

      Identify required/desired performance competencies that they should have to operate the facility i.e. what operators, supervisors and managers need to know and do to operate the facility safely and comply with the relevant laws, using their job descriptions and KPIs where relevant

      Conduct skills audit via a survey/interviews with the staff appointed to run the facility to determine their existing knowledge, skills, attitudes

      Analyse findings by comparing desired competences with existing competences to identify where there are shortfalls or gaps

      Draw up a capacity/skills development plan to address the competence gaps.

       

        Explanation   Get more detail
      Learning/skills needs analysis

       

      This process will clarify the desired knowledge, skills and attitudes required for particular jobs, identify existing skills gaps/needs and develop learning opportunities to satisfy the skills needs

      (a) Determine the combination of an employee’s qualification(s), experience and competence at a set time frame in a specific post and occupational grouping and functional unit.

      (b) Compare the individual’s capacity to the combination of qualification(s), experience and competence required for the specific post and occupational grouping and functional unit.

      (c) The difference between (a) and (b) above represents the learning needs in terms of qualifications, experience and/or competence (Competence is defined as a combination of knowledge, skills and attitudes required for the specific post and occupational grouping and functional unit).

      Local Government: Municipal Systems Act, 2000 (Act No. 32 Of 2000) Draft Local Government: Guidelines for The Implementation of The Municipal Staff Regulations. 23 September 2016. GN 1073.Chapter 5: Guideline 5B. Skills Needs Analysis; Guideline 5C Staff Staff Skills Audit [Link]
      GAPSKILL is an internet-based web tool to assist South African municipalities to conduct a skills audit: [http://gapskill.cogta.gov.za] – a copy of a skill questionnaire may be found by registering on this website.

       

      Capacity development plan

      The learning needs assessment will assist in planning a fit-for-purpose capacity development programme. The learning can take different forms [adapted from National Treasury draft Capacity Development Strategy].

      These include:

      • Informal (or self-directed) learning – through daily interactions and access to information and social networks.
      • Non-formal learning (or non-accredited) learning – in a structured learning environment but not formally recognised. Examples: workshops, skills-based courses, workplace-based training, seminars, coaching and mentoring.
      • Formal education and training programmes – registered and accredited education and training programmes which lead to qualifications within a field, occupation or discipline, and are often a prerequisite for professionalisation.
      • Learning networks – include communities of practice, communities of expert practitioners and other social networks where groups of people actively engage in learning together.
      • On-boarding/induction programmes – orientation of new employees to become productive members of an organisation.
      • Other approaches: eLearning, one-on-one learning (demonstration, coaching or mentoring), rotation into a variety of related posts, partnering with/shadowing someone with the relevant competence, researching and presenting findings, etc.
      GAPSKILL (the internet-based web tool for municipalities at http://gapskill.cogta.gov.za – there is an ‘Annexure 1’ which is a copy of the questionnaire.

       

       

      National Treasury Draft Capacity Development Strategy for Public Financial Management 31 January 2012 [Link]

      4.2.2: Address the competence gaps with training

      Design and implement suitable capacity development programmes for the operation
        Explanation   Get more detail
       Appoint suitable training providers where required.

       

       Design and implement non-formal, on-the-job training for operators (equipment suppliers do initial training), with refresher training at regular intervals.

       Design and implement accredited training for employees at all levels according to need to fill the competence gaps, including operators, supervisors and managers of the facility.

      Local Government employees must be given a variety of opportunities to acquire knowledge, skills and attitudes from their daily experience, educational influences and resources in their environment according to need.

      [Hyperlink to Learning Framework for Local Government COGTA-LGSETA-SALGA-IMATU- SAMWU. Compiled 19 April 2010 Consultations completed May 2012 [Link]
      Accredited training is preferred since it provides portable credits for learners which lead to qualifications – Sector Education and Training Authority (SETA) or Quality Council for Trades and Occupations (QCTO) credit-bearing courses based on nationally recognised Unit Standards or curricula at the appropriate level for the learner group being trained.

       

      This is based on a range of standards and qualifications that are registered on the National Qualifications Framework (NQF) [..]. The revised NQF landscape includes three councils to oversee the development of qualifications and the related quality assurance processes: Umalusi; the Council on Higher Education (CHE); and the QCTO (Figure 5).

      Hyperlink to National Qualifications Framework Act, 2008 (Act N0. 67 of 2008). [Link]

       

      Hyperlink MSA: Section 68. (1): [Link]

      Hyperlink to Learning Framework for Local Government COGTA-LGSETA-SALGA-IMATU- SAMWU. Compiled 19 April 2010. Consultations completed May 2012 [Link]

      Figure 5: A versatile approach to the provision of education and training

       

      Source: National Treasury. Learning Framework for Local Government 2012 COGTA-LGSETA et al.

      • Quality Council for Trades and Occupations: the QCTO draft policy creates the space for the development of ‘fit for purpose’ qualifications designed to meet industry’s vocational needs. Through the QCTO process, government is able to develop occupational qualifications that are specifically relevant to the public sector.
      • Council on Higher Education: the CHE is responsible for quality assurance in higher education institutions that provide academic qualifications at tertiary level.
      • Umalusi: Umalusi’s scope includes Further Education and Training (FET) colleges, which provide vocational- and occupational-related qualifications at NQF levels 4 and 5.
      • Skills Programmes: Skills programmes can help bridge the gap between formal learning and workplace skills. Such programmes provide practical, short interventions that build competence for specific tasks. Skills programmes can be developed and delivered quickly to support reforms, changes in policies, procedures, systems or processes.

      4.2.3: Build awareness and participation levels

      In addition to the focused capacity development around the alternative waste treatment AWT operation, the municipality must design and conduct public waste awareness programmes to inform and motivate members of the public to support and use the facility.
        Explanation   Get more detail
       Identify key message to be communicated by the awareness programme relating to treatment operation.

       

       Identify the target audience.

       Decide on the medium of communication.

       Design and implement the public awareness programme.

      Choose the medium and materials to communicate your key message that best suit the target audience and the specific context. All key stakeholder groups should be included for effective and sustainable waste management services, including local government officials, councillors and the public. There are many methods to raise awareness on where and what a new approach or operation is and why and how to participate [Link to CSIR good practices].

      Link to locally-hosted pdf: CSIR (2011). Municipal waste management – good practices. Edition 1. CSIR, Pretoria. p. 62
      Some ideas (as relevant to the chosen facility) for an awareness raising programme include [DEAT Working with Waste Guideline on recycling solid waste]:

       

      • Use the facility itself as an educational venue to educate the users and public about the treatment option and correct waste management – with organised tours of the facility.
      • Advertise the facility in public places via displays at shopping centres and libraries in the vicinity of the operation.
      • Ongoing communication to schools, community groups, business forums, environmental forums, ward committees etc. in the area.
      • For a materials recovery facility, motivate residents, schools and businesses to separate their waste at source by using a two-container collection system. where they segregate dry recyclables from the wet organic waste stream.
      • For a green waste treatment facility, inform residents where to offload green/garden refuse for further treatment to produce mulch or compost.
      • Encourage entrepreneurs to collect recyclables and bring them to a recycling facility where they receive payment for the materials.
      • Encourage waste exchange between industries or businesses for specialised waste streams.
      Link to locally-hosted DEAT Working with Waste: Guideline on recycling solid waste PDF. p 30.

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      4.1: Get the right people in the right positions doing the right things
      Learn how to run a treatment operation successfully.

      Have the structures and people with the required competencies to operate, manage and support the operation

      Train staff and raise awareness of people participating

       implement operations and maintenance programmes

      Make sure your operation remains economically viable

      Monitor compliance, evaluate and improve

       

      4.1: Get the right people in the right positions doing the right things

      Human resources (HR) management
        Explanation   Get more detail
      Municipalities, by law, have the responsibility of human resources management in terms of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) MSA[]. There are regulations drafted in terms of section 67 and section 120 of the MSA setting out the HR requirements and procedures for staff establishment, job descriptions and grading, staff recruitment and appointment, performance management, capacity development, grievance and disciplinary procedures etc. [Hyperlink to MSA [ ] and draft Municipal Staff Regulations]

       

      HR management includes recruiting, appointing and dismissing staff, administering wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and planning and implementing training. On-the-job induction and refresher training must be provided and the Workplace Skills Plan must incorporate skills development for waste activities.

      • Hyperlink to Local Government: Municipal Systems Act (32/2000),MSA link: [Link]
      • Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016. COGTA. [Link]
      • Draft Local Government: Guidelines for the Implementation of the Municipal Staff Regulations in terms of section 72, 23. GG 40293 GN No. 1073, September 2016. COGTA. [Link] 


      Sub-Walkthrough

      Jump to section

      • 4.1: Get the right people in the right positions doing the right things
      • 4.1.1: Identify the organisational structure for operating a waste facility
      • 4.1.2: Provide job descriptions
      • 4.1.3: Build individual competence
      • 4.1.4: Manage staff performance

      4.1.1: Identify the organisational structure for operating a waste facility

      Prepare an organogram and get the right project management structure in place
        Explanation   Get more detail
      There should be an overall municipal organogram already available which identifies the macro-level organisational structure and which also addresses the traditional solid waste management services.

       

      The specific project structure for implementing the chosen waste treatment options must also be accommodated:

      • Assess staffing gaps for the micro-level (operation-specific) staff structure to operate the facility.
      • Make sure that the micro structure enables suitable municipal staff to be appointed to oversee and/or operate the waste activity/facility, as appropriate to the service delivery mechanism chosen, namely whether internal or external [link to Walkthrough 2].
      • There must be sufficient operating staff at worker, operator, supervisor and manager levels as well as support services to carry out administrative and support functions like waste data management, training/coaching, monitoring and evaluation.

      [Hyperlink to MSA: Draft Local Government: Municipal Staff Regulations: GG 40293 GN No. 1074] Section 5 of the draft Municipal Staff Regulations stipulate that: A municipal council must —

      (a) determine the municipality’s staff establishment in each of its departments or staff supply planning by race, gender, disability, occupational level and grade with reference to their competencies, training needs and capacities;

      (b) determine the staff establishment necessary to perform its functions or staff demand planning, with particular reference to—

      (i) the number of staff members required;

      (ii) the minimum competencies which the staff members must possess; and

      (iii) the posts and post levels in which each of the staff members will be appointed; and

      (c) plan for the recruitment, retention and development of staff members according to the municipality’s requirements within the available budgeted funds, including funds for the remaining period of the relevant medium-term revenue and expenditure framework.

      • Hyperlink to Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: for Public Comment GG 40293 GN No. 1074. 23 September 2016. Guideline 1A: Determining Human Resource Requirements [Link]
      • [Hyperlink back to Walkthrough 2, Step 2.4]
      • Link MSA (Act 32 of 2000) section 66. [Link]

      4.1.2: Provide job descriptions

      Job descriptions must clearly set out the requirements for each person who fills a project-related post
        Explanation   Get more detail
      MSA requires municipality to provide job descriptions for each post on the staff establishment list [hyperlink to MSA and Draft regulations]

       

      Job description must clearly set out the requirements for each post: the job title, objectives of the job, competencies [link to MSA Municipal Staff Regulations competency framework] needed; the key roles, responsibilities and tasks to fulfil; lines of authority and reporting within the organisational structure; and requirements of the relevant job.  [Hyperlink to Job description template].

      The competencies needed for the job refer to knowledge, skills, experience, behaviour/ attitudes. [hyperlink to the Draft Municipal Staff Regulations. Annexure A: comprehensive competency framework developed by COGTA]

      The draft Municipal Staff Regulations stipulate that:

      (1) Every post on the staff establishment of a municipality must have a written job description.

      (2) The municipality must keep a record of job descriptions for all posts.

      (3) The supervisor must develop, and where appropriate, review a job description for a post that the supervisor is responsible for.

      (4) A job description must contain at least the job title, objectives of the job, the location of the job on the staff establishment, key responsibilities, competencies and requirements of the relevant job.

      (5) A job description may be reviewed at least once every five years following the reorganisation of the municipal administration resulting in significant changes to the jobs to ensure that the job description remains relevant and current.

      • Hyperlink to MSA Section 66: job descriptions must be provided [Link]
      • Hyperlink to Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016. COGTA. Guideline 1B: Developing a Job Description [Link]
      • Hyperlink to Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016. COGTA. Annexure A Local Government: Competency Framework for Occupational Streams. [Link]
      • Hyperlink to locally-hosted Job description template pdf.
      • Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016 [Link]
      • Draft Local Government: Guidelines for the Implementation of the Municipal Staff Regulations in terms of section 72. 23 September 2016 GN 1073. Chapter 1 Staff establishment, Job descriptions etc [Link]

      4.1.3: Build individual competence

      Prepare training plans/personal development plans for individuals
        Explanation   Get more detail

       

      Capacity development of individuals is an essential element of HR management [hyperlink to Walkthrough 4.2]. There is a competency framework set out in the draft municipal staff regulations for municipal staff members which helps to identify knowledge, skills and attitudes required for individuals occupying different staff positions at different levels [hyperlink competency framework]. Each individual is responsible for their own personal development plan.

      A Skills Development Facilitator (SDF) plays a key role in determining what training is required to help an individual staff member to do his/her job better and when this should occur. This is built into the Workplace Skills Plan (WSP) for the municipality.

      This WSP is incorporated into the municipal Integrated Development Plan (IDP) so that the budget is allocated to training. The WSP is reviewed annually and is the way to ensure that training for employees in waste management takes place on an ongoing basis.

      The MSA stipulates that [Link to MSA]

      (1) A municipality must develop its human resource capacity to a level that enables it to perform its functions and exercise its powers in an economical, effective, efficient and accountable way, and for this purpose must comply with the Skills Development Act, 1998 (Act No. 81 of 1998), and the Skills Development Levies Act, 1999 (Act No. 28 of 1999).

      (2) A municipality may in addition to any provision for a training levy in terms of the Skills Development Levies Act, 1999, make provision in its budget for the development and implementation of training programmes.

      (3) A municipality which does not have the financial means to provide funds for training programmes in addition to the levy payable in terms of the Skills Development Levies Act, 1999, may apply to the Sector Education and Training Authority for local government established in terms of the Skills Development Act, 1998, for such funds.

      • MSA Section 68. [Link]
      • Hyperlink to Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016. Annexure A. Local Government: Competency Framework for Occupational Streams [Link]
      • Hyperlink to Local Government: Municipal Systems Act (32/2000): Draft Local Government: Municipal Staff Regulations: For Public Comment GG 40293 GN No. 1074. 23 September 2016. Guideline 5D Personal Development Plan [Link]

       

      4.1.4: Manage staff performance

      Performance management for individuals checks how well they are performing in their job
        Explanation   Get more detail
      The performance management of employees is required by the MSA, Section 67 [hyperlink]

       

      An employee at supervisor level and above must sign a performance agreement with the municipality which must contain:

      • the name, job title and department of the staff member
      • the Key Performance Areas (KPA), their weightings and the target date for meeting the KPA. Examples of KPAs:
      • maintaining good working condition in the plant
      • optimum resource utilisation
      • process improvement
      • safety and prevention planning and control
      • working within the operations mandate and in compliance with policies and regulations
      • the Key Performance Indicators (KPIs) and the performance standard for each KPI
      • the name and definition of the job specific competencies, their weightings and the expected level of capability for each competency
      • a personal development plan prepared in compliance with regulation 66; and
      • the process of monitoring and assessing performance, including the planned dates of assessment.

      Section 67 (d) of the MSA requires the monitoring, measuring and evaluating of staff performance, namely a performance management system for municipal staff.

      Read more about KPAs and KPIs in Draft Local Government: Guidelines for the Implementation of the Municipal Staff Regulations.

      Read more about KPAs and KPIs in Draft Local Government: Guidelines for The Implementation of the Municipal Staff Regulations in terms of section 72. 23 September 2016 GN 1073. Chapter 4. Performance Management. Guideline 4B. [Link]
      3.4: Contract implementation, contract management during construction and commissioning
      • Construction of the infrastructure takes place during the implementation phase of the project.
      • Comply with contractual agreements throughout construction phase.

      3.4.1: Municipality designates an internal project manager or unit to manage the contracts/ partnership with service providers

        Explanation   Get more detail
      The project manager must be a qualified person who will take responsibility for the day-to-day management of the project.  The Project Management Unit (PMU) of the municipality that runs the MIG programme and reports to the municipal manager may also be made responsible.

       

      Contract management includes the following four steps:

      1. Procurement stage: signing of contract
      2. Development stage: signing commitment to service delivery
      3. Delivery stage: period during which services are provided and used
      4. Exit stage: end of project

      The project manager/PMU will be responsible for the management of the programme (municipal scale) as well as physical project implementation activities while ensuring that:

      • the project meets overall planning objectives and specific key performance indicators as determined by the ToR.
      • the coordination of regular progress meetings.
      • the associated project management administrative functions from project registration, evaluation through to final project completion reports.
      • Project manage the labour-intensive elements in line with the EPWP framework and the related reporting requirements.
      • Conduct site-visits / meetings to ensure compliance.
      • Manage cash flows and committed project expenditure.
      • [Locally hosted PDF: The Municipal Infrastructure Grant. From programme to projects to sustainable services MIG booklet 2004-2007 pdf]
      • [link to competence standards for contracting enterprise and for supervising building and construction works.  Board Notice 153 OF 2015 Construction Industry Development Board Act (38/2000): Competence Standards for Contractors 39074 [Link]]


      Sub-Walkthrough

      Jump to section:

      • 3.4.1: Municipality designates an internal project manager or unit to manage the contracts/ partnership with service providers
      • 3.4.2: Finalise site plans, drawings, purchase materials and equipment
      • 3.4.3: Establish site, build infrastructure and install equipment according to design
      • 3.4.4: Monitoring and compliance during construction phase
      • 3.4.5: Training of operator(s) during construction and commissioning
      • 3.4.6: Handover of project to municipality and to the operating entity

      3.4.2: Finalise site plans, drawings, purchase materials and equipment

        Explanation   Get more detail
      The detailed site plans and drawings must be finalised by the professional engineer and approved by the municipality. Then materials and equipment are purchased.

       

      Materials and equipment purchased according to Schedules of Quantities in the detailed design drawings

      Occupational Health and Safety Plan must be compiled and submitted. Health and safety plans

      Contractors shall prepare a documented health and safety (H&S) plan for each project to ensure a working environment for workers and the public that does not threaten their health and safety. The H&S plan shall address the significant and residual hazards and risks that a competent and resourced contractor would not have been expected to know relative to a specific project on a specific site.

      Green Building Council of SA (GBCSA) design according to ‘Green Star South Africa – Office Version 1’ Government Gazette; Green Building Council of SA: Best Practice Green Building Certification; April 2011

      • CIDB Standards for Contractor Performance Reports Grade [Link]
      • CIDB Contractor Management Guidelines; Section 3 Health and Safety plan  p 15 [Link]
      • Green Building Council of SA rating system [Link]

      3.4.3: Establish site, build infrastructure and install equipment according to design

        Explanation   Get more detail
      The building of the facility takes place according to the project and technical design.

       

      The engineer from the municipality or a consulting engineer who represents the municipality will supervise the work carried out by the contractor. However, the contractor is responsible for the quality and standards of the work done.

      Completion of the projects indicated on the capital works schedule.

      The Project Manager is responsible for:

      • the administration and financial management of funds
      • the compliance of all conditions relating to all funding mechanisms
      • timely submission of all reports as and when required, monthly, quarterly, annual reports
      • Monitor the consolidated cash flow performance reports on each project and on the regional programme collectively
      • Verify and reconcile transfers from funding source to the municipality
      • Audit and administer the monthly claims and expenditure
      • Coordinate regular progress meetings and project management administrative functions
      • CIDB Contractor Management Guidelines; Section 3. Site establishment and administration p21 [Link]
      • [Municipal Infrastructure Grant Department of Provincial and Local Government  A Guideline – Project Management Unit- March 2007 Page 23]

      3.4.4: Monitoring and compliance during construction phase

        Explanation   Get more detail
      Monitoring of physical project implementation activities to make sure that they meet overall objectives and specific key performance indicators in the implementation plan.

       

      CONSTRUCTION

      During the construction phase of the facility a close check is kept that all is going according to plan and is being built according to the specifications.

      The project manager/unit undertakes the following:

      • monitor progress and quality
      • monitor adherence to the Occupational Health and Safety Plans []
      • implement the training programme
      • conduct site visits and compile site visit reports
      • complete all monthly progress reports
      • capture all reports of the MIS
      • verify and update MIS information on a regular basis
      • quantification and certification of monthly progress certificates for work completed according to the specifications
      • process progress payments (consultants and contractors) on financial system
      • compile ‘As-Built’ drawings, operation and maintenance manuals

      There should be regular progress meetings that report on project management administrative functions, from project registration and evaluation through to final project completion reports.

      • [A Guideline – Project Management Unit –  March 2007 February 2007 Page 22]
      • CIDB: Construction Health and Safety in SA: 2008 [Link]
      • Board Notice 154 Of 2015 Construction Industry Development Board Act (38/2000): Standard For Contractor Performance Reports For Use On Construction Works Contracts (Grade 1) GG 39074 [Link]
      • Board Notice 181 Of 2013 Construction Industry Development Board Act (38/2000): GG 36760  Standard For Contractor Performance Reports For Use On Construction Works Contracts Grade 2-9; August 2013 [Link]

      3.4.5: Training of operator(s) during construction and commissioning

        Explanation   Get more detail
      A training plan should be developed to develop capacity for specific contractors to undertake construction tasks but also to train the future services provider (or operator) to operate the infrastructure. Typically, this would involve community-based organisations but it may also be aimed at municipal staff. In some cases, the obligation to support services providers may extend for up to three years. Such costs may be included under project costs. Often the supplier of equipment would provide specific training on particular plant or equipment.

       

      The training programme should address the training approach, objectives and outcomes, based on the contractors training requirements and identify training institutions that can provide the required training.

      The following logistical arrangements should be addressed:

      • the number of people to be trained
      • the venue and date of the training
      • the training materials required
      • the expected input and output of the training
      • the training service provider must identify suitable training service providers to provide the training.

      The training should be accredited with a Sector Education and Training Authority such as the Construction Education and Training Authority. The training should be provided and structured so that the contractor can meet the requirements for CIDB Contractor Competence Accreditation.

      • CIDB National Construction Development Programme Guidelines for Implementing Contractor Development Programmes [Link]
      • Targeting for Contractor Development Programmes: Background [Link]

      3.4.6: Handover of project to municipality and to the operating entity

        Explanation   Get more detail
      Physical completion

       

      Once the contractor has successfully completed the contract according to the prescribed contract conditions, technical specifications and standards the consulting engineer will issue a physical completion certificate with the physical hand over. This information must be captured on the MIS (Physical completion report form). The infrastructure must also be recorded in the municipality’s Infrastructure Asset Register

      Certificate of Completion

      On completion of construction, a Certificate of Completion must be completed by the municipality and submitted to the required line management.

      Completion of the works is usually followed by a defects liability period during which the contractor is obligated to make good any shortcomings in the materials and workmanship covered by the contract that are indicated by the employer or his representative (engineer, principal agent or project manager).

      The completion of the contract cannot take place before the expiry of the defects liability period.

      Completion of the works triggers the release of performance bonds and the reduction in retention monies. The completion date for a contract is usually linked to the completion of the works.

      • [Hyperlink to MIG dplg doc National MIG Management Unit Programme Management Processes and Procedures p 28, p 43 [Link]
      • CIDB Contractor Management Guidelines; Section 3.9 Finishing the project  p44 [Link]
      3.3: Implement procurement plan
        Explanation   Get more detail
      There will be tender processes associated with appointing external service providers to supply materials and equipment, to undertake construction and installation of equipment, and to commission the operation. If your municipality has identified an external delivery mechanism for operating the facility, you will need to procure the services of an operator to run the new system via a competitive bidding process.

       

      Prepare tender documents based on the detailed design, advertise and adjudicate bids received, draw up and sign contracts with successful bidders for both the construction phase and operational phase.

      There are essentially five distinct stages in the bidding process:

      1. compiling bid documents
      2. inviting bids
      3. receiving bids
      4. evaluating bids
      5. clearing successful bidders and awarding contracts
      • [Link locally hosted pdf: National Treasury. Supply Chain Management (SCM) A Guide for Accounting Officers / Authorities. 2004 p33]
      • [Link: CIDB: Construction Procurement Best Practice Guideline #A1. The procurement cycle December 2007 Third edition of CIDB document 1001[Link]


      Sub-Walkthrough

      Jump to section:

      • 3.3.1: Prepare tender documents based on a detailed project-specific design
      • 3.3.2: Appoint Bid Specification Committee (BSC) to finalise tender docs
      • 3.3.3: Advertise tender, hold tender briefing meeting if necessary
      • 3.3.4: Adjudicate and select preferred bidder with assistance from the Bid Evaluation Committee
      • 3.3.5: Contract or Service Level Agreement
      • 3.3.6: Council and successful Service Provider(s) (SPs) sign contract(s)

      3.3.1: Prepare tender documents based on a detailed project-specific design

        Explanation   Get more detail
      Tenders for the construction phase are based on detailed technical and project-specific design by professional consultants and comply with regulatory requirements and conditions of licences and approvals.

       

      You will need:

      • detailed technical drawings and plans
      • schedule of quantities
      • sufficient detail for the construction and commissioning of the facility

      Tenders for the operational phase specify the requirements for a competent service provider to operate and maintain the facility, and will be aligned to the service delivery mechanism and type of contract identified as most suitable for your option.

      Be sure to get the municipal council to endorse the procurement documentation before the tender is advertised.

      Final design for the project must provide sufficient detail to enable preparation of tender specifications which can invite competitive bids from external service providers.

      The procurement documentation will include:

      • a scope of work
      • schedule of quantities
      • technical design plans and drawings
      • specifications for contractor qualifications and experience according to the needs of the project.

      The procurement documentation must state what criteria will be used to evaluate proposals and tenders, for example preferential procurement procedures, cost, past track record, and so on. Most of the general tender forms that prospective bidders must fill in are standardised, but the terms of reference/scope of works will be specific to the particular facility or project and the service required.

      • [Link locally hosted pdf: National Treasury. Supply Chain Management (SCM). A Guide for Accounting Officers / Authorities. 2004. p12 and p55]
      • [Link locally hosted pdf: National Treasury. Supply Chain Management A Guide for Accounting Officers / Authorities.  2004 p 30]
      Table 5: Type of tender and procedures to follow
      Type of tender  Procedure to follow
      Building, engineering or construction works The Construction Industry Development Board (CIDB) has been established by government to promote the uniform application of policy to the construction industry. When calling for construction bids, accounting officers / authorities should use the standard bidding documents issued by the CIDB.
      A public-private partnership Ensure you follow section 16 of the National Treasury Regulations
      Consultancy Follow the SCM procedure below and refer to Chapter 5 of the SCM Guide for Accounting Officers/authorities
      • CIDB Construction Procurement Practice Guideline #C2 Choosing an appropriate  form of contract for engineering and construction works  September 2005 Second edition of CIDB document 1010  [Link]
      • Construction Procurement Best Practice Guideline # C1 Preparing procurement documents September 2005
      • Second edition of CIDB document 1009 [Link]
      • Link MFMA: [Link].
      • Link to SCM regulations, (and refer Walkthrough 2 Step 2.4) [Link]].
      • Link to PFMA: [Link][Link to Walkthrough 2, Step 2.4, and service delivery options diagram]
      Table 6: Elements that a good tender should include

      Element

      Description

      General and special contract conditions All contracts must be based on the General Conditions of Contract (GCC), issued by the National Treasury. (Annexure A). Any aspect not covered by the GCC should be dealt with in the special contract conditions (SCC). These conditions should form an integral part of the bidding documents.
      The basis for bid evaluation and selection should be clearly outlined in the instructions to bidders and/or in the specifications.
      Using standard bidding documents Use standard bidding documents (SBDs) issued by the National Treasury with minimum changes. The standard bid documentation and general conditions of contract issued by the  CIDB should be used in bids related to the construction industry.
      Type of contract Clearly state the type of contract to be entered into and the appropriate contract provisions it contains. The most common types of contracts provide for payments on the basis of lump sum prices, unit prices, reimbursable cost-plus fees, or combinations thereof.
      Language and clarity of documents Documents should be prepared at least in English, and worded so that they allow and encourage competition.
      Bid content
      • Bid document clearly and precisely states the work to be carried out, the location, the goods to be supplied, the place of delivery or installation, the schedule for delivery or completion, minimum performance requirements, the warranty and maintenance requirements as well as any other terms and conditions. In addition, bidding documents should define the tests, standards and methods that would be employed to judge the conformity of equipment as delivered or works as performed with the specifications. Drawings should be consistent with the text of the specifications and the order of precedence between the two should be specified. In addition to price, the bidding documents should specify any factors which will be taken into account in evaluating bids and how such factors would be quantified or otherwise evaluated. If bids based on alternative designs, materials, completion schedules, payment terms, etc. are permitted, conditions for their acceptability and the method of their evaluation should be expressly stated.
      • Each prospective bidder should be provided with the same information and should be assured of an equal opportunity to obtain additional information on a timely basis. Institutions should provide reasonable access to project sites for visits by prospective bidders. A pre-bid meeting may be arranged for potential bidders to meet with the institution’s representatives to seek clarifications. Minutes of the meeting should be provided to all prospective bidders. Any additional information, clarification, correction of errors, or modifications of bidding documents should be sent to each recipient of the original bidding documents in sufficient time before the deadline for receipt of bids to enable bidders to take appropriate actions. If necessary, the deadline should be extended.
      Inspections, tests, analyses The supplies to be produced or services to be rendered should at any stage during production or execution, or on completion be subject to inspection. The bid documentation should also specify that the premises of the bidder or contractor should be open at all reasonable hours for inspection by a representative of the institution or organisation acting on behalf of the institution.
      Tax clearance An original tax clearance certificate is required.
      Registration of bidders Registration with controlling authorities especially Central Supplier Database should be required.
      Use of brand names Avoid where at all possible and include ‘or equivalent’ if unavoidable.
      Pricing Bidders should be required to quote unit prices or lump sum prices and such prices should include all duties, taxes, percentage fees for cost reimbursable contracts and other levies.
      In the case of turnkey contracts, the bidder should be required to quote the price of the installed plant at site, including all costs for supply of equipment, marine and local transportation and insurance, installation and commissioning, as well as associated works and all other services included in the scope of the contract such as design, maintenance, operation, etc.
      Unless otherwise specified in the bidding documents, the turnkey price should include all duties, taxes, and other levies.
      Preparation time Time allowed for preparation and submission of bids is generally not less than 30 days from the date of the invitation to bid or the date of availability of bidding documents, whichever is later, for competitive bidding. Where large works or complex items of equipment are involved, this period should generally be not less than twelve weeks to enable prospective bidders to conduct investigations before submitting bids.
      Sometimes accounting officers / authorities may allow shortening of the closing date. Cognisance should also be taken of the fact that the shortening of the closing date should not disadvantage any potential suppliers from bidding for the requirements.
      Bid submission Bidders should be permitted to submit bids by mail or by hand. The deadline and place for receipt of bids should be specified in the invitation to bid. To standardise on the closing time of bids, it is recommended that bids should close at 11:00.
      Price adjustments due to escalation If the accounting officer / authority resolves to allow price escalation as part of the contract, this should be specified in the bid documents, including the formula and the time frames indicating at which intervals such price adjustments should be considered. Provide formula.
      Price adjustments due to fluctuation in the Rate of Exchange (RoE) When Government advertises bids, which might involve imported contents the Rate of Exchange (ROE) and future fluctuations are of vital importance. The supplier should bear all the risk and it is prescribed that the price will be fixed for the tenure of the contract, irrespective of the fluctuation of the currency. In such a case the supplier is free to arrange forward cover and / or to increase his / her price at bidding stage to cater for any fluctuation, thereby taking the risk of not being the successful bidder.
      Government can absorb the risk and suppliers may bid firm prices, subject to ROE variation. In such cases the supplier(s) may apply for price increases / decreases when the currency fluctuates in relation to the agreed currency. The problem in this regard is that the prices are not always adjusted when the rand appreciates. In such cases, it is of vital importance that the accounting officer / authority ensures that prices are adjusted to the benefit of the State
      Validity of Bids Bidders should be required to submit bids valid for a period specified in the bidding documents. This period should be sufficient to enable the institution to complete the comparison and evaluation of bids, review the recommendation and award the contract.
      Sureties Bid securities are normally required from bidders in the construction and engineering disciplines.
      • [Link to Walkthrough 2, Step 2.4, and service delivery options diagram]
      • [link to Table 6: National Treasury, February 2004: Supply Chain Management A Guide For Accounting Officers /Authorities [Link]]
      The Supply Chain Management Guide for Accounting Officers gives a checklist that will ensure that your tender documents are very specific, clear and leave little doubt as to what is required from the tenderer.

       


      Figure 5: Checklist for bid documents: SCM Guide for Accounting Officers p52

      Source: SCM Guide for Accounting Officers p52

      Figure 6: CIDB recommended forms of contract for use in the public sector

      Source: SCM Guide for Accounting Officers p63 and Annexure A: General Conditions of Contract p92

      CIDB Best Practice Guideline C1: Preparing procurement documentation Page 9 September, 2005: Edition 2 of CIDB document 1009 [Link]

      Table 7: CIDB recommended forms of contract for use in the public sector
      Subcategory of contract Form of contract Contract strategy
      Supplies CIDB The Supply contract* Single purchase(s) Term purchase with price list
      Supplies (short) CIDB Supply of goods (short contract)*
      CIDB General conditions of purchase#
      CIDB Contract for the Supply and Delivery of Goods
      Single purchase(s) Term purchase with price list
      Services (professional) NEC3 -Professional Services Contract Activity schedules
        or CIDB Standard Services Contract Fee percentage Time and expenses Term with price list
      Services (facilities) NEC3 Term services contract  
      Services (miscellaneous) Non-standard  
      Engineering and construction works See Best Practice Guideline # C2: Choosing an appropriate Form of Contract for Engineering and Construction Works
      Engineering and construction works (short)
      Disposals Non-standard  

      * Based on the New Engineering Contract (NEC) family of documents.
      # “Order form” purchase type contract.

      • CIDB Standard for Uniformity In Construction Procurement July 2015 [Link]
      Table 8: List of documents in a standard tender
      Contents Comments
      # Heading
      Part T1: Tendering procedures
      T1.1 Tender Notice and Invitation to Tender Can develop a generic, standard proforma, e.g. the CIDB proforma Tender Notice and Invitation to Tender (see Annexure 3 of CIDB document)
      T1.2 Tender Data Can develop a generic, standard proforma which links to a single set of conditions of contract that is generic to all categories of contract, e.g. the Standard Conditions of Tender contained in Annex F of SANS 294.
      Part T2: Returnable documents
      T2.1 List of Returnable Documents Can develop a generic, standard proforma, e.g. the CIDB proforma List of Returnable Documents (see Annexure 4)
      T2.2 Returnable Schedules Can develop a library of standard returnable schedules.
      Part C1: Agreements and contract data
      C1.1 Form of Offer and Acceptance Can develop a standard form of offer and acceptance e.g. the Form of Offer and Acceptance contained in Annex I of SANS 294
      C1.2 Contract Data Can develop generic, standard proforma for a selected general conditions of contract for a particular subcategory of contract (see Annexure 5 and Table 3.8 of SAICE’s Practice Manual #1, The use of South African National Standards in Construction Procurement)
      Part C2: Pricing data
      C2.1 Pricing Instructions Can develop standard proformas for a range of categories of contract and general conditions of contract
      C2.2 Activity Schedule / Bill of Quantities Contract specific, but can develop generic content for projects of a repetitive nature within a programme
      Part C3: Scope of Work
      C3 Scope of Work Contract specific, but can develop generic content for projects of a repetitive nature within a programme
      Part C4: Site information (engineering and construction works contracts only)
      C4 Site Information Contract specific, but can develop generic content for projects of a repetitive nature within a programme

      Request for proposal

      This method should be followed where selection is based both on the quality of a proposal and on the cost of the service through competition among firms, sometimes called a two-stage tender. This method will be applicable on more complex projects where consultants are requested and encouraged to propose their own methodology and to comment on the TOR in their proposals.

      Structure of Request for Proposal (RFP)

      Accounting officers/ authorities should include at least the following documents in a RFP:

      (i) Letter of invitation
      (ii) Information to consultants
      (iii) TOR
      (iv) Proposed contract
      (v) Criteria used to evaluate proposals and tenders

      Table 9: Preparation and issuance of ‘Request for Proposals’ (RFP) SCM Guide for Accounting Officers p63

      Item in RFP

      Description

      Letter of invitation (LOI) The LOI should state the intention to enter into a contract for the provision of consulting services, the details of the client and the date, time and address for submission of proposals.
      Information to Consultants (ITC) The ITC should contain all necessary information that would assist consultants to prepare responsive proposals. It should be transparent and provide information on the evaluation process by indicating the evaluation criteria and factors and their respective weights and the minimum qualifying score for functionality. A clear indication should be given of which preference points system will be applicable in terms of the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 Of 2000) (PPPFA) and its Regulations, as well as the goals to be targeted and the points allocated for each goal. The budget is not specified (since cost is a selection criterion), but should indicate the expected input of key professionals (staff time). Consultants, however, should be free to prepare their own estimates of staff time necessary to carry out the assignment. The ITC should specify the proposal validity period (normally 60–90 days). A detailed list of the information that should be included in the ITC is given in paragraph 5.16 of the SCM Guide for Accounting Officers.
      Terms of Reference The TOR should be compiled by a specialist in the area of the assignment and the scope of services described should be compatible with the available budget. The TOR should define as clearly as possible the objectives, goals and scope of the assignment including background information to facilitate the consultant in the preparation of its proposal. The TOR should be compiled in such a manner that consultants are able to propose their own methodology and staffing and be encouraged to comment on the TOR in their proposals. Depending on the circumstances, it may be indicated that proposals should be submitted in two separate, clearly marked envelopes, one containing the technical proposal and the other the cost for the assignment. In cases where pre-qualification / shortlisting is required, the TOR should indicate the basis of pre-qualification / shortlisting, for instance the number of minimum points to be scored to pre-qualify.
      Contract Accounting officers / authorities should use the appropriate Standard Form of Contract issued by the National Treasury. Any changes necessary to address specific project issues should be introduced through Contract Data Sheets or through Special Conditions of Contract and not by introducing changes in the wording of the General Conditions of Contract included in the Standard Form. When these forms are not appropriate (e.g., for pre-shipment inspection, training of students in universities) accounting officers / authorities should use other acceptable contract forms.
      Procedure to follow if your tender process is via Public-private Partnership (PPP) Procurement processes

       

      If you are undertaking a PPP be sure to follow the special procedures set out in the National Treasury guidelines for PPP procurement

      This is a much more complicated process and you will need to be guided by a Transaction Advisor or a specialist who has experience in setting up PPPs.

      The municipality and the contracting entity / concessionaire will agree to perform and meet the objectives of the contract and oblige in terms of:

      1. Partnership management: managing the accountability and how the municipality and service provider relate to each other.
      2. Service delivery management: systems and procedures designed to manage risk and performance.
      3. Contract administration: effective managing of all administrative requirements stipulated in the contract.

      Summary: Contents of the RFP document

      1. General information to bidders
      2. In smaller municipal PPPs, the requirement for information about bidders in lieu of a separate request for qualification (RFQ) process
      3. Essential minimum requirements
      4. Service specifications
      5. Standard specifications
      6. Payment mechanism and penalty regime
      7. Legal requirements and draft PPP agreement
      8. Commitments required from bidders
      9. Evaluation criteria
      10. Bid formalities

      If you need to appoint consultants

      Consultants include, among others, consulting firms, engineering firms, construction managers, management firms, procurement agents, inspection agents, auditors, other multinational organisations, investment and merchant banks, universities, research agencies, government agencies, non-governmental organisations (NGOs) and individuals who are specialists in their field.

      Accounting officers / authorities may use these consultants to assist in a wide range of activities such as policy advice, engineering services, construction supervision, financial services, procurement services, social and environmental studies and identification, preparation and implementation of projects to complement accounting officers’ / authorities’ capabilities in these areas.

      Consultants should only be engaged when the necessary skills and / or resources to perform a project/duty/study are not available and the accounting officer / authority cannot be reasonably expected either to train or to recruit people in the time available.

      • PPP Law: [Link]
      • National Treasury PPP Unit: Introducing Public Private Partnerships in South Africa
      • National Treasury: DPLG (now COGTA) Municipal Service Delivery and PPP Guidelines new 2008  p252
      • Please refer to the PPP Unit, now known as Government Technical Advisory Centre, or GTAC [https://www.gtac.gov.za/]
      • Link: Accounting Standards Board Guideline on Accounting for Public Private Partnerships issued by the Accounting Standards Board.  November 2008
      • [Hyperlink to checklist for the PPP process as locally hosted pdf]
      • [CIDB Best Practice Guideline A7: Procurement of professional services Page 2 December 2007: Edition 2 of CIDB document 1035 [Link] ]

      3.3.2: Appoint Bid Specification Committee (BSC) to finalise tender docs

      The BSC will comprise officials from the relevant departments within the municipality, representatives from the funding agency as well as from relevant interested/specialist bodies. An institution may appoint officials with the necessary technical expertise and external advisors to serve on the BSC.

      The role of this BSC is to advise and check bid specifications.

      A similar committee, the Bid Evaluation Committee, also assists at the bid evaluation stage.

      The Bid Specification Committee will have representatives from:

      • The municipal Accounting Officer
      • The municipal technical services department
      • The municipal Supply Chain management department
      • The professional consultant team
      • The municipal department where waste management falls
      • Other

      The Bid Evaluation Committee would have similar representation.

      3.3.3: Advertise tender, hold tender briefing meeting if necessary

      Be sure to advertise the tender timeously when procurement is via a competitive bidding process.

      • Bids should be advertised for at least 30 days before closure in at least the Government Tender Bulletin or other appropriate media for wider exposure to potential bidders.
      • In urgent cases bids may be advertised for such shorter periods as the accounting officer/authority may determine.
      • Compulsory or non-compulsory tender briefing meetings must be clearly stated.
      • Advertising costs are for the relevant accounting officer / authority.
      • A list of responses to the advertisement must be kept.
      • Related pre-qualification or bidding document, as the case may be, should be available on the publication date of the advertisement.

      Be sure that the tender process remains open and transparent and that all prospective bidders are kept informed of any changes or information additional to that contained in the original advertised tender.

      Checklist for a fair and transparent process.

      Figure 7: Invitation to bid:  SCM Guide for Accounting Officers p51

      3.3.4: Adjudicate and select preferred bidder with assistance from the Bid Evaluation Committee

        Explanation   Get more detail
      The Bid Evaluation Committee (BEC) consists of officials from various participating government institutions duly appointed by their respective institutions. External advisors may be appointed to offer expert advice but are prohibited from participating in the final decision making. This committee is responsible for the evaluation of all bids received.

       

      Bid Evaluation Checklist

      Check that tender documentation is complete:

      • includes original tax clearance certificates
      • has been properly signed
      • is accompanied by the required securities
      • is substantially responsive to the bidding documents; and
      • is otherwise generally in order.

      Bid must be rejected if:

      • it is received late
      • it deviates significantly from, or has significant reservations to, the terms, conditions and specifications in the bidding documents
      • The bidder’s name (including the name of any member/partner) appears in the list of restricted bidders/persons

      Evaluation and comparison of bids:

      • The bidder is not permitted to correct or withdraw material deviations or reservations once bids have been opened.
      • Bids evaluation only in terms of the criteria stipulated in the bidding documents.
      • Amending the evaluation criteria after closure of the bids should not be allowed, as this would jeopardise the fairness of the system.
      • Points scored for price must be added to points scored for goals. The contract is usually awarded to the bidder who scores the highest points.
      • Evaluation of tenders and submission of tender evaluation report to the Municipal Council for approval.
      • Approval of responsive tenderer by the Municipal Council.

      Figure 8:  Evaluation of bid:  SCM Guide for Accounting Officers p54

      Evaluation criteria will vary from project to project and must be based on the information requested from the bidders. The BEC will evaluate the different elements like the financial, technical, legal, and BEE qualifications of the bidders.

      Scoring and ranking bids – templates for score sheets [CIDB]

       

      Example of a Bid Evaluation Report for a two-stage tender where bidders are first evaluated on their technical (functionality) criteria, and only bids achieving the required minimum score have their financial proposals opened during the second stage:

      Example of the structure of a 2-envelope Bid Evaluation Report:

      1. EXECUTIVE SUMMARY
      2. INTRODUCTION AND PROCEDURE
        1. Introduction
        2. Tendering procedure
      3. CALCULATION OF THE FINAL SCORE
        1. Stage 1: Qualification Documents
        2. Stage 2: Technical Proposal   
        3. Stage 3: Financial Proposal
          1. Broad-Based Black Economic Empowerment (B-BBEE) Status Level Evaluation           
          2. Price Evaluation           
          3. Final Score 
      4. COMMENTS ON THE FINANCIAL BID
      5. RECOMMENDATIONS FOR CONTRACT NEGOTIATIONS     
      • ANNEX A: OPENING PROTOCOL FOR FINANCIAL BIDS
      • ANNEX B: Bill of Quantities (BoQ) OF BIDDERS
      • ANNEX C: B-BBEE STATUS
      • ANNEX D: TECHNICAL EVALUATION REPORT

      TABLES

      • Table 1: B-BBEE Scoring Table
      • Table 2: Summary of Sections of BoQ
      • Table 3: Final Total Scores
      • Table 4: BoQ of the preferred bidder in comparison to the consultants’ financial estimate.
      • CIDB Construction Industry Development Board Standard For Uniformity In Construction Procurement July 2015 [Link]
      • CIDB: Construction Procurement Best Practice Guideline #A3 Evaluating tenders offers February 2008 Fifth edition of CIDB document 1003 [Link]
      • Construction Procurement Best Practice Guideline #C3 Adjudication September 2005 Second edition of CIDB document 1011 [Link]

       

      Request for Qualification (RFQ) evaluation criteria

      Category and subcategories

      Good, adequate or poor

      Respondent capability and strength  
      • Proposed respondent composition and structure
        Skill and experience of relevant organisations and key subcontractors

         

        • Construction
        • Operations
        • Advisers
        • Suppliers
      • Strength of covenant between relevant organisations and key subcontractors and respondent
      • Financial and market standing
      • Ability to raise debt and equity and to provide security
       
      BEE qualifications  
      Written confirmation that each proposed consortium member and first-tier subcontractor, is compliant with the BEE charter applicable to its particular sector or applicable generic code

       

      Where no consortium is to be formed, written confirmation that the bidder is in compliance with its applicable sector BEE charter or generic code

       
      Deliverability  
      • Commitment and capacity to meet project timetable
      • Project management capability
      • Current workload of consortium members
      • Quality assurance systems
      • Risk management capability
       
      Project awareness  
      Demonstration of understanding key project demands and complexities  
      Locally hosted pdf: National Treasury: DPLG (COGTA) Municipal Service Delivery and PPP Guidelines new 2008 Module 5 p 26

      3.3.5: Contract or Service Level Agreement

        Explanation   Get more detail
      Draw up Service Level Agreement or contract with the successful bidder(s) in line with implementation and procurement plan

       

      After approval of a bid, both parties should sign a written contract or, if necessary, a service level agreement. Original/legal copies of contracts should be kept in a secure place for judicial reference.

      Formulate contracts:

      Drawing up a sound contract between municipality and project developer (e.g. template and/or checklist).

      Checklist of the elements a good contract should entail, both for PPP (based on National Treasury guidelines) and non-PPP contracts.

      The General Conditions of Contract apply.

      Using the standard CIDB templates

      Templates are available on the CIDB website for each of the component documents and a wide range of standard forms of contract supported by the CIDB. It is important that a new template is downloaded from the website every time a procurement document is developed. This will ensure that the most up to date templates are used.

      Once the contract is finalised it may trigger s33 of the MFMA if the municipality will have a financial obligation beyond 3 (three) years. Section 33 stipulates that a municipality may enter into a contract which will impose financial obligations on the municipality beyond the three years covered in the annual budget for a financial year.

      After the municipality has approved the tender evaluation report, the municipality can appoint the successful contractor for the construction of the project.

      • Capture contractor’s details on management information system (MIS).
      • The contractor can then commence with construction of the project in terms of the design and project business plan.
      • The consulting engineer will represent the municipality during this period and supervise the work carried out by the contractor. However, the contractor will be responsible for the quality and correctness of the work performed in all cases.
      • Register the contractor with the Construction Industry Development Board.
      • [Link to Walkthrough 2. Step 2.4.4]
      • SCM Guide for Accounting Officers [Link]
      • [Hyperlink to locally-hosted MIG:  A guide for the establishment of a project management unit (PMU) by municipalities. DPLG. 2007]
      • [Link to locally hosted: SCM Guide for Accounting Officers p63 and Annexure A: General Conditions of Contract p92]
      • Link to MFMA [Link]
      • Annex F (normative) Standard Conditions of Tender As published in Annexure F of the CIDB Standard for Uniformity for construction Procurement, Board Notice 136 Government Gazette No 38960 of 10 July 2015 [Link]
      • [Hyperlink to locally hosted Municipal Infrastructure Grant: A Guide for the Establishment of a Project Management Unit (PMU) by municipalities 2007/08 Page 21]
      • [Hyperlink: National Treasury PPP Practice Note No 1 of 2004; Standardised PPP Provisions; First Issue; 11 March 2004_1.pdf
      • and National Treasury PPP Practice Notes issued in terms of the Public Finance Management Act
      • Link to: National Treasury: Government procurement: General conditions of contract July 2010 [Link]

      3.3.6: Council and successful Service Provider(s) (SPs) sign contract(s)

      Commitment to deliverables specified in the contract.
        Explanation   Get more detail
      Council resolution will:

       

      • Note the outcome of the procurement process.
      • Note the s33 report regarding future financial commitment.
      • Note views, recommendations and comments of Treasury.
      • Authorise Municipal Manager to execute the contract, ensure contract monitoring and enforcement:
        Contracts with service providers for construction phase:
      • to supply materials and equipment
      • to undertake construction
      • to install and commission equipment

      Contract(s) for operational phase:

      • to maintain the facility
      • to manage its operation

      Pitfalls in SCM Processes

      Common findings in the AG’s annual reports on SCM non-compliance and irregular expenditure include:

      • appointment of suppliers who are not tax compliant
      • failure to use competitive processes for quotations and bids
      • incorrect use of the preference points system
      • lack of appropriate bid committees
      • use of unqualified suppliers
      • passing over of bids for incorrect reasons
      • use of incorrect procurement processes in relation to threshold values for quotations and competitive bidding
      • extension of validity periods
      • incorrect use of the limited bidding process
      • inadequate controls and procedures for handling bids
      • appointment of bid committee members not aligned with policy requirements
      • insufficient motivation for deviations from SCM procedures

      Tendering stage violations include:

      • absence of public notification of invitations to tender
      • evaluation criteria changed during bid evaluation and adjudication
      • conflicts of interest not declared
      • political interference
      • recommendations ignored by accounting officers
      • manipulation of scores
      • discretion used to award tenders to more than one bidder
      • detailed tender records not kept

      Pitfalls to avoid:

      Common supply chain management errors Public SCM performance is weakened by institutional practices which include the following:

      • Poor alignment between strategy, demand management and SCM planning
      • Poor decision-making about sourcing strategies
      • Lack of aggregation of procurement transactions
      • Poor bid specifications
      • Improper bid evaluation and adjudication
      • Poor contract management
      • Insufficient supplier performance management

      These weaknesses are being addressed through advisory and operations support services and through education and training. Toolkits and training are being developed and delivered to improve capabilities in demand management, strategic sourcing, procurement planning, bid specification writing, managing the bid committee system, avoiding bid rigging, and contract management.

      Interventions in a number of critical areas are needed in order to speed up delivery and increase value.

      • National Treasury 2015 Public Sector Supply chain management review. [Link]
      • 2015 Public Sector Supply Chain Management Review P54 [Link]
      3.2: Undertake all legal applications specific to chosen option

      i.e. environmental, health and safety (H&S), planning, etc according to implementation plan.

      All the necessary authorisations and permissions must be in place up front before you can start any site clearing or construction, otherwise you will face significant penalties and delays.

      This step can take a significant amount of time to complete especially if there are multiple approvals that have set consultation timeframes e.g. Environmental Impact Assessment (EIA), Water Use Licence Application (WULA) and town planning applications. Some processes can take as long as two years if there are complicating delays.


      Sub-Walkthrough

      Jump to section:

      • 3.2.1: Appoint suitable professionals to confirm relevant legal requirements, prepare and submit applications
      • 3.2.2: Obtain necessary licences and approvals before starting any construction

      3.2.1: Appoint suitable professionals to confirm relevant legal requirements, prepare and submit applications

        Explanation   Get more detail
      The applications for an environmental authorisation / waste management licence must be done by an independent environmental assessment practitioner (EAP) and professional specialists with the necessary qualifications and experience. There are several laws that may be relevant and you will need specialist assistance to determine exactly which listed activities apply and which process(es) to follow for the type and scale of operation of your chosen AWT option [GreenCape excel sheet].

       

      Application processes legally required for technology-specific AWT options

      Follow the legal processes identified for your treatment option as determined during the feasibility assessment. As the project developer, you are responsible to ensure that all licences, authorisations, approvals or registrations which relate to environmental or town planning aspects are obtained [See figure 4 below]. For many of these, you will need to appoint EAP and other specialists e.g. for water quality, air quality, biodiversity, heritage and town planning aspects to manage the respective processes.

      You will need the concept design site plans and technical drawings for the applications for environmental, planning etc approvals or licences.

      Waste licence application (WLA) with Environmental Authorisation (EA) / Atmospheric Emission Licence (AEL) (whatever necessary): National Environmental Management Act, 1998 (Act No. 107 of 1998, as amended in 2014) (NEMA), Specific Environmental Management Acts (SEMAs) and National Environmental Management: Waste Act, 2008 (Act 59 of 2008) and Amendments (NEMWA)

      Water Use Licence (WULA) link to process on Department of Water and Sanitation (DWS) website and online application for WULA:

      • [refer to NEMA requirements and to locally hosted Supply Chain Management (SCM). A Guide for Accounting Officers / Authorities.  2004 p.55]
      • [Legislation Walkthrough 2 links exist and links to any additional legislation]
      • [Hyperlink to locally hosted pdf of GreenCape excel sheet with legal requirements per technology]
      • [link to legal requirements Walkthrough 2, step 2.3.7 and Figure 4 below ]
      • [Hyperlink to previous Walkthrough 3, step 3.1.1]
      • [Refer to legislative processes Layer 1 and locally hosted pdf of GreenCape Excel sheet for legal requirements for each treatment option]
      • NEMA [Link]
      • NEMWA [Link]
      • Link National Water Act, 1998 (Act No. 36 of 1998) (NWA): [Link]
      • WATER USE LICENCE [Link]
      • Walkthrough 2/Website/local pdf links to flow diagrams of EIA, WULA, planning processes

      Figure 4: The decision-making process in determining what key permissions are needed for a proposed AWT option

      Note: Once these permissions have been obtained you will still have to apply for municipal permits, registrations, compliance according to the particular municipality e.g. effluent discharge permit, business licence, scheduled trade permit, waste handler registration(s).

      3.2.2: Obtain necessary licences and approvals before starting any construction

        Explanation   Get more detail
      These applications proceed according to set timeframes, for example a waste licence can take up to 18 months. Be sure not to start any construction activities on site before you have received the necessary authorisations, licences and approvals for the proposed treatment option.

       

      Be sure to incorporate all of the conditions and requirements set out in the licences and authorisations into your detailed project design for establishing and operating the proposed facility.

       
      3.1: Get the funding you need
      • Confirm feasibility and secure funding
      • Get the necessary authorisations, licences and approvals
      • Procure services and supplies
      • Build a legally compliant treatment facility according to project design
      • Commission facility for operation

      3.1: Get the funding you need

      Do the preliminary design for your preferred AWT project

      Confirm the findings of the feasibility study for the project-specific chosen option

      Apply for and obtain funding to build and operate the planned AWT facility


      Sub-Walkthrough

      Jump to section:

      • 3.1.1: Preliminary project design to confirm feasibility for preferred project-specific option
      • 3.1.2: Secure capital funding
      • 3.1.3: Secure operational funding

      3.1.1: Preliminary project design to confirm feasibility for preferred project-specific option

        Explanation   Get more detail
      Appoint professional consultant(s) to assist with preliminary project design if needed

       

      Preliminary project design and concept technical design

      Calculate what the CAPEX will be for your preferred project

      Calculate what the OPEX will be for your preferred project

      Confirm findings of feasibility study

      Preliminary project design will indicate how much funding is needed for capital costs (e.g. for building materials, plant and equipment) and for operational costs (i.e. for paying an operator and staff, running costs like fuel, repairs and maintenance).

      Undertake preliminary concept design and costing for your specific project to confirm its feasibility and provide details for tender documentation. You can use the tables below to estimate the capital and operational costs for a particular treatment option. Project design must maximise opportunities for using labour intensive methods; achieve greening goals wherever possible and get the most value out of waste. Projects must meet the greening/environmental criteria as well as any other relevant investment criteria required to access particular funding, whether from your own municipal budget or an external source.

      Some municipalities are able to design and implement capital projects in house while others need to appoint external professionals and contractors. This will usually be a team of people who have engineering, technical, environmental, financial and organisation development skills. They must have a good grasp of municipal processes.

      Preliminary design includes:

      Concept plans and technical drawings prepared by professional engineers and/or architects.

      Preliminary costings based on full cost accounting for the specific option with avoided costs included.

      Community participation and awareness plan.

      Project-related training plan (operator and/or Extended Public Works Programme (EPWP)related, as appropriate)

      [Locally hosted PDF: The Municipal Infrastructure Grant. From programme to projects to sustainable services MIG booklet 2004-2007 pdf]

       

      [KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016 p 16]

      [Link to Walkthrough 3, Step 3.4.5 – training]

      [Link locally hosted PDF: KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016 p.16]

      • Hyperlink to Agriprotein website: nutrient upcycling: http://agriprotein.com/press-office/
      • http://agriprotein.com/our-impact-partners/
      • http://agriprotein.com/our-technology/
      • http://agriprotein.com/our-products/

      Also hyperlink to reference cited in Salomone, R., et al., Environmental impact of food waste bioconversion by insects: Application of Life Cycle Assessment to process using Hermetia illucens, Journal of Cleaner Production (2016), [Link]

      The table below gives indicatory costs for estimating both capital and operational costs.

       

       

      Table 1: Summary of expected cost ranges for treatment options

      Technology

      Range of full specific cost ZAR/t

      Capital cost as estimated % of full cost

      Operational costs as estimated % of full cost

      Landfilling 200–400

      67*

      33

      Windrow composting 300–400

      40

      60

      Materials recovery facilities 300–400

      50

      50

      Simple mechanical biological treatment (MBT) 300–500

      50

      50

      MBT with intensive decomposition and fermentation 700–900

      60

      40

      Anaerobic digestion 700–800

      50

      50

      In vessel composting >600

      50

      50

      Incineration with energy recovery 1,200–1,500

      62

      38

      Thermal Treatment – Pyrolysis 1,300–1,700

      62

      38

      [source KP4, p 21]

      *This includes all capital costs of phased site development, closure and aftercare.

      The transaction costs of planning, design, permitting and managing the project processes must also be included in the budgetary requirements for the implementation phase, especially since much of the work in this phase must be carried out by professional consultants or specialists. These costs are usually included as capital costs.

      Table 2: Transaction cost structure in the project preparation phase
      Cost category Notes
      Feasibility Study and Technical Design 5 to 10% of the total investment (capital) costs. The most expensive phase is the detailed technical design.
      Permitting/licensing (including environmental impact assessment (EIA) and technical documentation needed for permitting, site selection and specialist studies) 3 to 5% of the total investment cost, depending on the difficulty of procedures and compliance.
      Market Research Regularly part of the feasibility study. This merits special attention. Market research may be omitted at times for waste management tenders by public authorities, but is crucially important for AWT options.
      Setting up the Financing Scheme Often the source of financing is a combination of public and private funds in the case of AWT. Options for the financing scheme becomes part of the feasibility study.
      Contracting and Negotiations Since municipal waste is municipally owned, setting up AWTs will almost always involve public tendering procedures. Public procurement (tendering) can be a lengthy and expensive process, as professional advice is likely to be involved. Initiating Public-private Partnership (PPP) adds additional complexity to the procedures.
      Construction Supervision Along with the construction, a separate construction supervision contract is needed to monitor and control the construction works. This may be tendered and allocated together with the detailed design.

      [source KP4, p 16]

      The feasibility of the chosen treatment option must be confirmed within the specific project context looking more closely at costs and benefits. In addition to reviewing the feasibility study carried out during the planning phase [Reference to Step 2.3], the following should particularly be considered:

      • the revenues from AWT and the existence of a market for the outputs, market prices and fluctuations
      • quality requirements of the outputs
      • additional processing costs for outputs
      • opportunity for use of by-products (such as residual heat from some AWT options)
      • disposal costs for residual wastes
      • the availability and quality of input feedstock
      • distance to market for outputs
      • government incentives, etc.

      If there is good demand for some outputs, such as good quality compost with minimum contamination, the revenues generated will make such a treatment option preferable to another where the treatment costs are higher e.g. anaerobic digestion or MBT.

      Once the feasibility of the chosen option has been confirmed, the next step is to secure funding. Most AWT facilities will need additional revenue sources from economic incentive programmes, grant financing, public financing or gate fees.

      3.1.2: Secure capital funding

        Explanation   Get more detail
      Identify funding options and prepare applications for funding

       

      Obtain funding commitment

      Several funding options are available to get capital funding to implement the chosen AWT option. Capital funding will pay for capital expenditure (referred to as CAPEX) items like land purchase, site clearance, infrastructure, construction of reception areas and buildings, materials storage areas, building materials, mobile plant and vehicles, containers and vessels, mechanical equipment, electrical equipment. It should also include the planning, permitting, siting of the facility and preparation of tenders and contracts.

      Different funding options have their own specific criteria that your application will be evaluated on. Make sure that you fulfil these requirements to be eligible to receive funding [See Table 3]

       

      Sources of capital funding include:

      • 3.1.2.1 Municipal (own) funding
      • 3.1.2.2 Municipal Infrastructure Grant
      • 3.1.2.3 Consolidated Municipal Infrastructure Programme (CMIP)
      • 3.1.2.4 Extended Public Works Programme (EPWP)
      • 3.1.2.5 Carbon credits
      • 3.1.2.6 International donor funding
      • 3.1.2.7 Financial institution (e.g. Development Bank of Southern Africa (DBSA)
      • 3.1.2.8 Public-private partnerships (PPPs)
      • 3.1.2.9 Provincial and National government allocations

      Make application and obtain funding for CAPEX.

       

       

      Table 3: Sources of capital funding and criteria for eligibility (not exhaustive)
      Capital funding source Funding Agency Initiative/ programme Criteria to qualify for funding What projects could apply? Hyperlinks
      3.1.2.1 Municipal (own) funding Municipality Own internal projects According to need and affordability must be listed in Integrated Waste Management Plan (IWMP) and Integrated Development Plan (IDP). According to need [Link]
      3.1.2.2 Municipal Infrastructure Grant (MIG) Department of Cooperative a Governance and Traditional Affairs (COGTA) National and Provincial MIG is an
      infrastructure grant
      to expand the
      delivery of basic services to poor households and to alleviate poverty.

       

      • comprises 3-year capital plan and 3-year operation and maintenance costs
      • allocate MIG funds in the municipal IDP budget
      • No need to make an application for funds. Funds are determined by formula and are paid into the bank account of the municipality according to a MIG schedule, agreed with the municipality.
      • MIG is a conditional grant and can be decreased if municipalities do not comply with performance, monitoring and reporting.

      Municipalities must:

      • meet specific criteria to receive grants and fulfil conditions when spending them
      • demonstrate sufficient capacity to manage the programme
      • prepare and submit all monthly reports on how it has used the grant in a prescribed format according to MIG indicators by a specified time
      MIG funds may be used for:

       

      • capital investment – including project management costs
      • infrastructure which is used by the poor
      • building new infrastructure and rehabilitating existing infrastructure (i.e. reconstruction of infrastructure which has reached the end of its life)
      • upgrading existing infrastructure to basic levels
      • project feasibility studies and project business plans
      • ensuring sound operational arrangements for the infrastructure
      MIG [Link]

       

      [Locally hosted PDF: The Municipal Infrastructure Grant. From programme to projects to sustainable services MIG booklet 2004-2007 pdf
      p30]

      3.1.2.3 Consolidated Municipal Infrastructure Programme (CMIP) National Treasury via COGTA

       

       

      Conditional capital grants to municipalities for provision to the poor.
      The CMIP has now been integrated into the MIG programme.
      Municipality must:

       

      • Prioritise potential projects within its area of jurisdiction and select projects for which it intends to apply for CMIP funding.
      • Complete an application form to request funding, clearly indicating how the project meets the funding criteria of the programme. Separate application forms should be completed for each type of service – e.g., roads or water – for which funds are requested.
      Provision of services and
      facilities such as water, roads, storm-water drainage, solid waste disposal, community lighting, clinics, cemeteries and multi-purpose community and sports
      facilities to needy South Africans
      The Consolidated Municipal Infrastructure Programme Handbook. Fifth Edition Technical Guideline. August 2001
      [Link]
      3.1.2.4 Extended Public Works Programme (EPWP) National Department of Public Works (DPW) is the overall coordinator while
      Department of Environmental Affairs (DEA) coordinates the Environment and Culture sector where waste management resides.
      National conditional grant programme aimed at alleviating poverty and reducing unemployment. Provision of work opportunities coupled with project-based training. Covers all spheres of government and state-owned enterprises (SOEs) and spans four
      sectors comprising infrastructure, social, non-state and environment and culture.
      All public bodies involved in infrastructure provision are expected to contribute to the programme.
      National government has through the Division of Revenue Act, 2015 (Act No. 1 of 2015) (DORA) placed additional
      conditionalities on infrastructure grants.

       

      • Creation of work opportunities through the use of labour-intensive construction and maintenance methods.
      •  ‘Guidelines for the implementation of labour-intensive infrastructure projects under the EPWP’ for identification, design, construction and maintenance of assets.
      •  Must be written into IDP and align with MIG funding objectives.
      Wide variety of projects in the four sectors that involve the use of an appropriate mix of labour and machines, with a preference for labour where technically feasible and economically viable, without compromising the quality of the product. EPWP Infrastructure Guidelines [Link]
      3.1.2.5 Carbon credits
      Carbon financing is a revenue source that is also a possibility.
      Various project initiators in developed world – usually a developed country. Clean Development Mechanism (Kyoto Protocol) Projects that reduce GHG emissions can earn carbon emission reduction credits that have monetary value and can sell them to developed countries for them to meet their emission reduction targets. Landfill extraction for flaring or energy generation.
      AWT projects that utilise biogas from anaerobic digestion processes.
      Any project that diverts wastes from landfill, particularly the organic fraction.
      [KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016 p 17]

       

      Published for Public Comment
      Carbon Offsets Paper
      April 2014
      [Link]

      3.1.2.6 International donor funding Various international donors e.g. (not exhaustive):

       

      French AFD:

      German: GIZ

      European Union:

      Various with climate change, waste minimisation objectives Criteria specific to achieving donor objectives Alternative Waste Treatment (AWT) projects

       

      Sustainable Waste Management (SWM) projects

      Climate Support Programme (CSP)

      AFD
      [Link]
      GIZ [Link]
      EU [Link]
      3.1.2.7 Financial institution (e.g. DBSA) e.g. Development Bank of Southern Africa

       

      Others could include:

      German KfW Development Bank

      European Investment Bank

      Loan funding of specific programmes /projects delivering developmental infrastructure in South Africa and the rest of the African continent.
      Administers the Green Fund
      Municipalities in South Africa are a key market for the Bank and the organisation has built extensive expertise and product offerings in servicing this important market as a catalyst for socio-economic development within municipalities. Apply for loan finance in various forms.
      Private sector
      Projects in the education, health and housing sectors,
      Project Management support including to the Green Fund

       

      • Supporting the maintenance and/or improvement of key infrastructure projects.
      • Funding Public-private Partnerships and Public-public Partnerships.
      • The Green Fund is a national fund that supports green initiatives to assist the country’s transition to a low carbon, resource efficient and climate resilient development path to deliver high impact economic, environmental and social benefits. Assistance through grants (recoverable and non-recoverable), loans (concessional rates and terms) and equity to green cities and towns, low carbon economy and environmental & natural resource management.
      DBSA [Link]

       

      KFW [Link]

      EIB [Link]

      3.1.2.8 Public-private Partnerships Public-private Partnerships
      ​
      Usually initiated by a Public entity seeking partnership with the Private Sector Supported by Government Technical Advisory Centre (GTAC), an agency of the National Treasury. GTAC reports to the Minister of Finance and is established as a government component in terms of the Public Service Act, 1994 (Act No. 103 of 1994).
      Concession: Usually larger longer-term projects where private sector funding and risk sharing is desired.
      GTAC supports public finance management through professional advisory services, programme and project management, and transaction support.
      Based on the feasibility and sustainability of the project partnership.
      Where the private sector is involved, funding is usually awarded on the basis of a competitive bid
      Construction and operation of a facility with various conditions, duration and management options

       

      GTAC promotes public sector capacity building through partnerships with academic and research institutions, civil society and business organisations.

      PPP [Link]
      3.1.2.9 Provincial and National government allocations Government programmes run to achieve particular objectives Government-driven projects e.g. Green Fund:
      Financial and other support to various entities engaged in green economic activities from early stage research and development right through to the project expansion phase.
      Grants (recoverable and non-recoverable),
      loans (concessional rates and terms), equity.
      Example: Green Fund (GF):

       

      • Relevance to priority areas of the GF
      • Innovation in technology, business model, institutional arrangements or financing approach
      • Additionality in that the project would not have proceeded without the GF support
      • Ability to scale up and/or replicability by which the project has the potential to be rolled out to other sites and/or implemented at a large scale.
      Example: Greening projects – greening core municipal infrastructure, sustainable built environment, integrated planning for climate resilient cities, low carbon economy including cleaner production, renewable energy, alternative fuels, ecosystem services, etc. Green Fund [Link]

      3.1.3: Secure operational funding

        Explanation   Get more detail
      Identify funding options and prepare applications
      Obtain funding commitment

       

      There are several ways to meet operational expenditure (referred to as OPEX) required for the chosen AWT option. Operational funding will pay for items like the salaries of the operator and facility staff; costs for running the facility such as fuel, electricity, water, consumable supplies, mechanical repairs and maintenance costs. Monitoring and quality control, customer relations and satisfaction surveys, awareness-raising, insurance, taxes and cost of financing also fall within this category [KP4].

      Make application and obtain funding for OPEX.

      Revenues may be from local taxes or fees, monies from the sale of materials or energy recovered, gate fees, collection from service users/customers or transfers from local or national budgets. Other less significant financing sources include income from permits, the occasional renting of assets, profit sharing deals (e.g. concession fees) or littering fines.

       

      Sources of operational funding include:

      • 3.1.3.1   Tariffs
      • 3.1.3.2   Rates and charges
      • 3.1.3.3   Equitable share grant
      • 3.1.3.4   Donor funding
      • 3.1.3.5    Other subsidies
      • 3.1.3.6    Carbon credits
      • 3.1.3.7    Product revenue
      Table 4: Sources of funding for operational expenditure
      Operational funding source Funding Agency Description Criteria for funding

      Hyperlinks

      3.1.3.1 Tariffs Municipality Tariffs are payable by individual households and businesses for solid waste services provided by the municipality. Tariff policy is written into bylaws and enforced. The Solid Waste Tariff Setting Guideline is available for Local Authorities and a Tariff Setting Model which calculates appropriate tariffs for specific services are available on the SAWIC website. Achieving full cost recovery for more advanced treatment options will be a challenge since waste tariffs in many municipalities barely cover collection costs, and do not include costs of disposal. In terms of the Municipal Systems Act, 2000 (Act No. 32 of 2000) (MSA) every municipality must ‘adopt and implement a tariff policy on the levying of fees for municipal services provided by the municipality itself or by way of service delivery agreements,’ This includes solid waste. Link Municipal Systems Act

       

      [hyperlink to DEA website Tariff setting tool: [Link] and Guideline as locally hosted pdf]

      3.1.3.2 Rates and user charges Municipality Rates are paid by owners of rateable property and provide revenue to fund services that benefit the community as a whole (as opposed to individual households). User charges for solid waste collection and disposal services and public services, such as street cleaning, are often added onto the rates account. Local Government:
      Municipal Property Rates
      Amendment Act, 2014 (Act No. 29 of 2014) and bylaws on municipal rates as required by MSA sections 12 & 13.
      Link to MSA [Link]
      3.1.3.3 Equitable share grant National Treasury The equitable share grant is an unconditional grant to supplement municipalities’ revenue to deliver services to poor households. It subsidises the actual provision of the service (e.g. the salaries, operational costs, maintenance costs, administrative and managements costs) where free basic services are provided.
      Local governments are responsible for providing basic cost of public services such as water and sanitation, electricity reticulation, refuse removal, municipal transport and roads, and community services. They also provide free or subsidised basic services to poor households.
      Provincial governments are responsible for implementing nationally determined policies in education, health, social development, agriculture, roads and human settlements.
      Municipalities fund a significant portion of the costs of providing these services from user charges and property rates within their own tax base.
      No application is needed.
      The equitable share grants are automatically determined by formulas that take into account demographic and developmental factors. The division of revenue between national, provincial and local government also takes into account the powers and functions assigned to each level of government, as well as their ability to raise revenue.
      Poor and rural municipalities receive higher per capita transfers to fund free basic services.
      [Link]

       

      In terms of the Division of Revenue Act, 2015 (Act No. 1 of 2015) (DORA)
      [Link]

       

      3.1.3.4 Donor funding Various Usually international and requiring certain criteria to be met as conditions of the funding. Various according to particular programmes  
      3.1.3.5 Other subsidies Various Other subsidies: there may be other operating subsidies, such as for environmental health, fuel levies that can be used. Various according to particular programmes  
      3.1.3.6 Carbon credits Commercial and individual customers who want to lower their carbon footprint on a voluntary basis purchase the credits from an investment fund or a carbon development company that has aggregated the credits from individual projects Carbon financing is widely used internationally and is linked to the greenhouse gas (GHG) reduction impact of the investments and therefore climate change mitigation. A single carbon credit represents the reduction of one tonne of CO2 equivalent emissions. There is no set price for carbon credits. For organisations in South Africa the purchase of carbon credits is voluntary. South Africa has benefited from carbon financing through project-based initiatives and a Nationally Appropriate Mitigation Action, which may contribute to revenues. Many sellers either get their credits verified by a third party or subscribe to one of several voluntary standards. The carbon trading organisation allocates funding when GHG reductions are achieved, rigorously monitored and verified according to the industry standard being followed. [KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016 p 17].
      Hyperlink to: [Link]
      Hyperlink to: [Link]Hyperlink to: [Link]
      3.1.3.7 Product revenue AWT operation Other revenue streams earned from saleable products of AWT.
      The outputs of the AWT technologies described in KP2 and analysed from an economic point of view in KP4 include: compost and compost-like outputs, aggregates, different recyclables, refuse derived fuel (RDF), biogas/biofuel and energy (heat and/or electricity).
      Marketability and sale of recyclables, electricity generation or carbon credits.

       

      Provided that the outputs are good quality and there is a market for the product, they can become a source of additional revenue.

      [KP2: Appropriate Technology for Advanced Waste Treatment DEA 2015 [KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016]
      2.7: Council resolution in support of selected option

      Follow your municipality’s specific approval process to obtain Council approval for the selected option to continue to procurement process.

        Explanation   Get more detail
      • Submit detailed feasibility report, business plan, implementation and procurement plan to Council for approval (include implementation and procurement plans).
      • Each municipality has its own approval processes usually requiring plans and reports to be passed through official committees before being tabled at Council.
      • The budget for a project must be incorporated into the municipal IDP and approved before the project can be implemented.
      • Council gives approval that the project can proceed according to the plans (taking into account procurement, delivery options, budget).
      Each municipality has its own approval processes usually requiring plans and reports to be passed through official committees before being tabled at Council.

      The budget for a project must be incorporated into the municipal IDP and approved before the project can be implemented.

      2.6: Business case and implementation and procurement plan

      Appointed consultants prepare a business case and implementation plan which includes a procurement plan for the selected alternative waste treatment option, which takes into consideration the comments from the multi-stakeholder consultation process.

      The business case is the formal mechanism through which projects are approved by the Council and also forms part of a project proposal in funding applications. It is a description of the project (based on the recommended best option from the feasibility study) and includes the type of infrastructure and equipment, the capital budget required, cash flow, outputs and targets and resources required for implementation. It also describes the socio-economic impact of the proposed project, delivery mechanism and procurement options.

      2.6.1 Develop a business case for investing in AWT using the information from the preceding steps of Walkthrough 2

        Explanation   Get more detail
      • Use information from the baseline assessment in IWMP and feasibility study:
        • Outline the current waste process flow from generation to treatment/disposal, the waste quantities and composition and current costs.
      • Use information on financial analysis of the different technical options considered in the feasibility study.
        • Describe findings on affordability and cost-recovery requirements.

      Refer to the assessment made during the feasibility study of whether to opt for advanced waste treatment or remain with the business as usual scenario based on whether the incremental change in the cost to the municipality is acceptable.

      [KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

       

      Suggested Business Case template/outline from KP4:

      1. Analyse existing waste systems
      2. Define project scope, technical etc
      3. Understand existing costs
      4. Specific costs, for example certain collection and transfer costs; closure and after-care costs
      5. Operational costs
      6. Revenues
      7. Financial Analysis
        – Define key input values to the analysis
        – Assess full cost of treatment options (develop cost accounting schedule)
        – Affordability and cost recovery
        – Cost-benefit assessment
        – Assess the non-tariff revenues
        – Establish revenue requirement
        – Define the Gate Fee
        – Assess financial model sensitivities
      8. Concluding remarks


      Jump to section:

      • 2.6.1 Develop a business case for investing in AWT using the information from the preceding steps of Walkthrough 2
      • 2.6.2 Develop an implementation plan which also outlines a procurement plan

      2.6.2 Develop an implementation plan which also outlines a procurement plan

        Explanation   Get more detail
      • Formulate structure of the contract supported by an implementation plan
      • Part of the implementation plan will be the procurement plan: determine the required alignment of bid specification and tender documents according to the municipality’s and any other requirements (for example external funding requirements) – include link to detail in Walkthrough 3.

      The municipality must ensure that it has in place and implements its supply chain management policy in terms of section 111 of the MFMA.

      Template outlines of procurement plans.

       

      Example: http://www.slideshare.net/ifad/3-procurement-plan International Fund for Agricultural Development IFAS and ITC (ILO)

      Link: Understanding the Municipal Procurement Process. A Guide for Businesses. Ethics Institute of SA [Link]

      Implementation plan example

      Municipal Service Delivery and PPP Guidelines: National Treasury PPP Unit

      Template for a PPP Procurement Plan: [Link to PPP guidelines]

      A procurement plan for a PPP must contain at least the following:

      1. Confirmation that sufficient funds are available in the municipality’s budget for contract implementation.
      2. Potential challenges and how these will be addressed.
      3. The best procurement practice and procedures suited to the project type and structure.
      4. The governance processes to be used by the municipality in its management of the procurement process, especially regarding decision-making.
      5. The project stakeholders and the extent of their involvement in the external option.
      6. The project team with assigned functions.
      7. Categories of information to be made available to bidders and how such information will be developed.
      8. A list of required approvals from within and outside the municipality.
      9. A Gantt chart of the procurement process, including all approvals and work items necessary for obtaining these approvals (for procurement documentation as well as, for example, the land acquisitions and environmental studies to be procured by the municipality).
      10. Contingency plans for dealing with deviations from the timetable and budgets.
      11. The bid evaluation process and teams.
      12. An appropriate quality assurance process for procurement documentation.
      13. The means of establishing and maintaining an appropriate audit trail for the procurement.
      14. Appropriate security and confidentiality systems, including confidentiality agreements, anti-corruption mechanisms, and conflict of interest forms to be signed by all project team members.

      [Link to Walkthrough 3: Bid specification and tender documents according to municipality’s and any other procurement requirements (for example external funding requirements)]

      User friendly guide on procurement: [Link]  2015. Kris Dobie and Namhla Xinwa, Guide to understanding Municipal Procurement Processes. Ethics Institute of South Africa  

      The municipality’s supply chain management policy must comply with the requirements of section 112 of the MFMA and the Municipal Supply Chain Management Regulations (GN.R868 of 20 January 2017) [Link].

      In determining the procurement plan, the municipality should also consider the range of procurement processes, depending on the likely monetary value of the planned project. Regulation 12 provides for procurement of goods and services by way of:

      • petty cash purchases, up to a transaction value of R2 000 (VAT included);
      • written or verbal quotations for procurements of a transaction value over R2 000 up to R10 000 (VAT included);
      • formal written price quotations for procurements of a transaction value over R10 000 up to R200 000 (VAT included); and
      • a competitive bidding process for—
      • procurements above a transaction value of R200 000 (VAT included); and
      • the procurement of long term contracts.

      Furthermore, in terms of the Preferential Procurement Policy Framework Act, 5 of 2000 [Link], a preference points system must be used as follows:

      • For contracts with a Rand value greater than R1 million (subject to change), the price component has a weighting of 90% and the social and development aspects have a weighting of 10%.
      • For contracts less than or equal to R1 million, the price component has a weighting of 80% and the social and development aspects have a weighting of 20%.
         
      2.5: Consult stakeholders and confirm option

      Follow the required consultation process(es) to obtain comments on the preferred option, identified by the feasibility study, from multi-stakeholder groups who will be potentially affected by changes in the waste management system or who need to be participants in new systems for their successful implementation. Agree on the selected option.

      Note: A transaction advisor or consultant would usually prepare these documents, using information from the feasibility study and choice of service delivery mechanism.

        Explanation   Get more detail
      Involve the relevant stakeholders from early on in regular meetings to discuss way forward, progress of plans to make decisions that will impact on the implementation of the project. These should not only include the members of the Project Steering Committee (PSC) but also other groupings such as the commercial waste sector, informal sector, community-based organisations (CBOs), non-government organisations (NGOs) and academic/research institutions.

      If a municipality decides to provide a municipal service though a service delivery agreement (namely an external mechanism) then section 80(2) of the MSA requires the municipality to establish a programme for community consultation and information dissemination regarding the appointment of the external service provider and the contents of the service delivery agreement. The contents of a service delivery agreement must be communicated to the local community through the media.

      Municipal Service Delivery and PPP Guidelines [Link]

      Possible key stakeholders include:

      • Those within the municipality
      • Other government departments
      • Other spheres of government
      • Organised labour
      • Third parties
      • The public
      2.4: Identify service delivery mechanisms

      Determine what service delivery and procurement processes apply to the proposed AWT option.
      First assess the capacity for and cost of delivering the service itself.

      Section 76 of the Local Government: Municipal Systems Act, (Act 32 of 2000) (MSA) defines the various service delivery options.

      Internal options include:

      • the municipality
      • a municipal department
      • a business unit under the sole control of the municipality.

      External options include:

      • another municipality
      • a municipal entity
      • a national or provincial organ of state
      • any private entity, institution or person.

      Municipal service
      If the service being assessed is an existing municipal service, under MSA Chapter 8 the municipality should give equal importance to internal and external options, but may assess them at the same time.
      The assessment of internal options must consider:

      • direct and indirect costs
      • capacity to deliver
      • all benefits of delivering the service internally.

      The internal options must then be compared with the external options, presenting the advantages and disadvantages of both. This sequence of decisions is established in the MSA Section 78(1) to (3) [Link to S78 Process Diagram].


      Sub-Walkthrough

      Jump to Section:

      • 2.4.1 Determine if an option is a municipal service or support activity
      • 2.4.2 If the option is a municipal service, decide if an internal or external mechanism will be used.
      • 2.4.3 Determine how much risk to transfer or retain for the municipality if an external mechanism is chosen.
      • 2.4.4 Contracting options – MFMA Supply Chain Management options

       

        Explanation   Get more detail

      2.4.1 Determine if an option is a municipal service or support activity

      Carry out a service delivery options analysis to decide whether the proposed activity is a municipal service, as defined in the MSA, or a municipal support activity [hyperlink to definitions with examples]. This will determine which service delivery mechanism and procurement processes apply.

      2.4.2 If the option is a municipal service, decide if an internal or external mechanism will be used.

      Determine whether the municipal service project will be delivered through an internal or external mechanism (which will require a contract), also as defined in the MSA [hyperlink to definition].

      • Step 1: Assessment of internal mechanisms
      • Step 2: Decision on internal mechanisms
      • Step 3: Assessment of external mechanisms
      • Step 4: Decision on appropriate mechanism [link to MSA Section 76 and 78]

      2.4.3 Determine how much risk to transfer or retain for the municipality if an external mechanism is chosen.

      • There could be technical, operational and financial risks associated with undertaking a project.
        Risk can be transferred to an external service provider, namely via a Public-private Partnership (PPP) in terms of the Municipal Finance Management Act, 2003 (Act No, 56 of 2003) Section 120 (S120) process or retained by the municipality if it undertakes the project via an ordinary Supply Chain Management (SCM) process and contract [Link to risk transfer paragraph Step 2.3.10].[Hyperlink to Service Delivery Options diagram]
        Follow the processes set out in the MSA (links to outlines/templates below)Read more:
        KP5 p 50
      Link to MSA Local Government: Municipal Systems Act 32 of 2000 [Link]

       

      [Refer to relevant KP4 and KP5
      KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

      KP5: Operator Models and Business Opportunities in Advanced Waste Treatment for SA: Guidance. DEA. 2016.Concept Draft]
      [Insert diagram: SERVICE DELIVERY OPTIONS with clickable ‘If this, then that…’. Functionality]

       

      Service Delivery Options Diagram

      Municipal Service Delivery and PPP Guidelines: Solid Waste Management p22

      ‘Risk
      One of the clauses in the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA) defines a PPP as the transfer of ‘substantial financial, technical and operational risks’ to the private party. One of the more important aspects of the feasibility study is to define the operational and technical risks of the activity.

      Operational risks
      Given that waste collection and recycling activities are active systems and rely heavily on equipment and labour, the major risks in performing these activities will be operational. Operational risks are transferred to the private party through the tendering and contract documents, and specifically through penalty clauses and performance standards, secured in the form of a performance bond. The feasibility study assesses the operational risks and recommends performance standards to be used in the contract.

      Technical risks
      Other waste management activities will include significant technical risks. The design of a landfill or the operation of a methane gas recovery system, for
      example, will involve significant technical risks, which should be borne by the private party. The technical risks involved in an incinerator or any treatment facility should also be totally transferred to the private party.

      Shared risks
      The risk assessment should also identify the risks that should be shared. These typically include changes in the law, strikes, severe weather, or any activity beyond the reasonable control of the private party. Although a contract could transfer all these risks to the private party, the cost of the activity will then increase to reflect the private party’s higher exposure to risk.‘

       

      A municipal service is a service that a municipality provides in terms of its constitutional powers and functions to, or for, the benefit of the local community irrespective of whether: (a) such service is provided by the municipality through an internal mechanism or by engaging an external mechanism and (b) fees, charges or tariffs are levied in respect of such service or not.

       

      • Street cleaning, refuse removal, refuse dumps and solid waste disposal are examples of municipal solid waste services.

      If the proposed activity is a municipal service and the municipality is considering using an external mechanism to deliver the service, it must follow the provisions of Chapter 8 of the Local Government: Municipal Services Act, 32 of 2000 (MSA), loosely referred to as a ‘Section 78 process’,

      Link to service delivery options: S78 process diagrams

      Links to legislative requirements See Local Government: Municipal Systems Act 32 of 2000 [Link]
      A municipal support activity is defined as an activity that is reasonably necessary for, or incidental to, the effective performance of a municipal service and exercise of its powers but which does not constitute a municipal service. There are many solid waste management activities performed by municipalities that are not defined as municipal services as they are not provided to, or on behalf of, the local community, nor are they listed in Schedule 4B or Schedule 5B of the Constitution. Most of these activities are cost saving measures that reduce the overall cost of waste collection and disposal or reduce the environmental impacts of waste management

       

      • Recycling, waste minimisation, composting green and garden waste, waste processing and methane gas recovery are examples of municipal support activities.

      If the proposed activity is a municipal support activity, MSA Chapter 8 does not apply, and the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA) Section 120 applies only if the external option is a public-private partnership (PPP). If not a PPP, the municipal support activity may be procured as a municipal good or service, following standard supply chain procedures. [Link to service delivery options diagram and Municipal PPP Guidelines]

       

      Comparison of service delivery options [click to enlarge]

      Source: KP4 9

      Municipal service delivery options: Undertake an options assessment to determine whether the municipal service project will be delivered through an internal or external mechanism (requires contract).

      The following procedure should be followed:
      A municipality may provide a municipal service through:
      a)    an internal mechanism; or
      b)    an external mechanism.

      Internal mechanisms are:
      a)    a department or administrative unit within its administration;
      b)    any business unit devised by the municipality, provided it operates within the municipality’s administration and under the control of the council in accordance with operational and performance criteria determined by the council; or
      c)    any other component of its administration.

      External mechanisms require the municipality to enter into a service delivery agreement with:
      a)    a municipal entity;
      b)    another municipality;
      c)    an organ of state;
      d)    a community-based organisation or NGO; or
      e)    any other institution, entity or person.

      If the service being assessed is an existing municipal service, the municipality should give equal importance to internal and external options, but must assess them at the same time.

      The municipality should undertake the following process in deciding whether an internal or external mechanism will achieve the best outcome:

      Step 1: Assessment of internal mechanisms
      [Link : See relevant section 78(1)(a) of the MSA.]

      The municipality must [Optional dropdown for (i) to (v)]:
      (i)    assess the direct and indirect costs and benefits associated with the project if the service is provided by the municipality through an internal mechanism, including the expected effect on the environment and on human health, wellbeing and safety;
      (ii)   assess the municipality’s capacity and potential future capacity to furnish the skills, expertise and resources necessary for the provision of the service through an internal mechanism;
      (iii)  assess the extent to which the re-organisation of its administration and the development of the human resource capacity within that administration as provided for in sections 51 and 68, respectively, could be utilised to provide a service through an internal mechanism;
      (iv) assess the likely impact on development, job creation and employment patterns in the municipality; and
      (v)  assess the views of organised labour.

      It may also take into account any developing trends in the sustainable provision of municipal services.

      Step 2: Decision on internal mechanism

      The municipality may then decide on the appropriate internal mechanism, or it may explore the possibility of providing the service through an external mechanism.

      Step 3: Assessment of external mechanisms

      If a municipality wishes to explore external options, it must follow the notice and assessment requirements set out in section 78(3) of the MSA. [insert link to MSA: [Link]].

      Step 4: Decision on appropriate mechanism

      The municipality must then decide on the appropriate internal or external mechanism, considering that municipal services must:
      (a)  be equitable and accessible;
      (b)  be provided in a manner that is conducive to the prudent, economic, efficient and effective use of available resources and the improvement of standards of quality over time;
      (c)   be financially sustainable;
      (d)  be environmentally sustainable; and
      (e)  be regularly reviewed with a view to upgrading, extension and improvement.

      If the municipality decides to provide the municipal service through an internal mechanism, it must:
      (a)  allocate sufficient human, financial and other resources necessary for the proper provision of the service; and
      (b)  transform the provision of that service in accordance with the requirements of the MSA.

      If the municipality decides to provide the service through an external mechanism, it must establish a programme for community consultation and information dissemination regarding the appointment for the external service provider and the contents of the service delivery agreement. The contents of the service delivery procedure must be communicated to the local community through the media. If the service delivery agreement is with another municipality, that other municipality must also conduct or commission a feasibility study in accordance with section 80(3) of the MSA (link to MSA).

      Where the municipal service is to be undertaken by a private party, it will need to undertake a competitive bidding process.

      If the external mechanism involves a public-private partnership (PPP), the municipality must comply with section 120 of the Local Government: Municipal Finance Management Act, 56 of 2003 (MFMA) [Link: [Link].

      A PPP is a commercial transaction between a municipality and a private party, where the private party

      • performs a municipal function for or on behalf of a municipality, and/or acquires the management or use of municipal property for its own commercial purposes;
      • assumes substantial financial, technical and operational risks in connection with the performance of the municipal function and/or management of the municipal property; and
      • receives a benefit from performing the municipal function and/or from utilising the municipal property, such as payment from the municipality or charging fees for the function being performed.

      A feasibility study for a PPP must be undertaken in accordance with section 120 of the MFMA and the Municipal Public-Private Partnership Regulations (GN.R309 of 1 April 2005) [link: [Link]]

      Don’t forget that prior to undertaking the feasibility study, the accounting officer is required to notify national and provincial Treasury departments, who may require the municipality to appoint a transaction advisor to assist and advise the municipality on the preparation and procurement of the PPP Agreement.

      Importantly, a PPP agreement may only be entered into if the municipality can demonstrate that the agreement will:
      (a)  provide value for money;
      (b)  be affordable to the municipality; and
      (c)   transfer appropriate technical, operational and financial risk to the private party.

      2.4.4 Contracting options – MFMA Supply Chain Management options

      Follow the procurement process identified in the procurement plan. Make sure that it complies with the MFMA requirements for competitive procurement.

      Table below presents the types of contracts that are potentially possible and their expected/typical duration.

      Types of service delivery contracts between private and public entities (DEA, 2015).

      KP 5, p 50
      The plan must follow supply chain management (SCM) regulations in terms of the procurement process, not least in terms of any competitive procurement (including PPP), which must comply with Section 120 of the MFMA. It is important to note that once a contract is finalised, it may trigger Section 33 of the MFMA if the municipality has a financial obligation beyond three years. Section 33 stipulates that a municipality may enter into a contract, which will impose financial obligations on the municipality beyond the three years covered in the annual budget for a financial year.
      The contract management includes a procurement stage (signing of contract), development stage (signing a commitment to service delivery), delivery stage (period during which services are provided and used), and exit stage (end of project).
      2.3: Investigate feasibility of selected option(s)
        Explanation   Get more detail
      Once a technology option has been approved by council, carry out a more detailed investigation into the feasibility of the proposed project. You will probably need to appoint professional consultants to conduct the feasibility study.

       

      Investigate the feasibility of all the different aspects of the proposed alternative waste treatment option: technical, service delivery options, environmental, legal, institutional and economic/financial aspects. Typically, the average feasibility study costs approximately 2.3 % of the total estimated project cost – slightly more for a greenfield project and slightly less for a brownfield project.[1]

      • See the steps for conducting a feasibility study for delivery of Solid Waste Management services: download the Municipal Service Delivery and PPP Guidelines Feasibility Study Toolkit: Solid Waste Management 
      • Additional consideration should be given to the full Municipal Service Delivery and PPP Guidelines 
      • [1] W Mackenzie and N Cusworth, The Use and Abuse of Feasibility Studies. Project Evaluation Conference Melbourne, Vic, 19–20 June 2007


      Sub-Walkthrough

      • 2.3.1 Draw up consultant’s Terms of Reference (ToRs) to include steps (2.3.2 to 2.3.12) and appoint professional service provider(s)
      • 2.3.2 Update baseline situational analysis
      • 2.3.3 Describe need and desirability of preferred option/s based on situational analysis
      • 2.3.4 Institutional analysis
      • 2.3.5 Technical options feasibility
      • 2.3.6 Determine environmental aspects
      • 2.3.7 Determine legal requirements
      • 2.3.8 Investigate financial aspects
      • 2.3.9 Assess delivery model and contracting options
      • 2.3.10 Carry out value assessment which also includes avoided costs, risk analysis, and cost benefit analysis.
      • 2.3.11 Confirm feasibility of option recommended for implementation
      • 2.3.12 If not feasible, investigate ‘back to basics’ back-up options

       

        Explanation   Get more detail

      2.3.1 Appoint a service provider to conduct the feasibility study

      The study should answer the questions below (2.3.2 to 2.3.12) as a minimum. This list should help you draft the Terms of Reference (ToRs) for the service provider.

      2.3.2 Update baseline situational analysis

      Review and update the baseline data if the IWMP information is incomplete or out of date.

      2.3.3 Needs analysis

      • What is the purpose of the proposed activity and what benefits will it achieve in the light of the status quo?
      • Does it align with municipality’s strategic objectives as per the IWMP?
      • What is the economic rationale for a municipality to invest in AWT?
      • Need to conserve landfill airspace as a valuable and scarce ‘asset’
      • Need to make progress on meeting the National Waste Management Strategy and national policy targets to divert significant quantities of MSW from landfill. With increasing application of policy instruments the bottom line for introducing AWT improves.

      2.3.4 Institutional

      • Are the necessary policies and bylaws in place to mandate the role-players to undertake agreements and solid waste management (SWM) activities required for the project?
      • Is there political will to undertake the project?
      • Are SWM roles and responsibilities clearly defined in the organisational structure of the municipality?
      • Does the designated waste management officer (WMO) have capacity to oversee a new project as the municipality’s point of contact/focal person?
      • Is there sufficient staff capacity with the required skills and experience to implement or contract manage the project?

      2.3.5 Technical options feasibility

      • Proposed project definition
      • Is there enough waste of the right composition and quality suitable for the proposed technology?
      • Output of the waste treatment process: is there a market for the product (be it electricity, gas, compost, etc.)?
      • What are the technical requirements per option, namely equipment requirements or space requirements etc.

      2.3.6 Environmental requirements and considerations

      • Is there a suitable location?
      • What are the environmental processes to follow?
      • What authorisations or licences are required?
      • What are the environmental impacts (including GHG emissions modelling) associated with the technologies and mitigation measures.
      • Initiate the environmental approval and stakeholder consultation processes as early as possible since these can cause significant delays. Where possible, run processes in parallel.

      2.3.7 Legal requirements

      • Are the necessary bylaws in place to mandate the municipality to implement the option?
      • What laws apply for authorisations, licences and approvals?
      • How long will the legal processes take and how much will it cost to comply?

      2.3.8 Financial aspects

      • How much will the implementation of the project cost (CAPEX and OPEX)?
      • What are the avoided costs?
      • What are the financing options?

      Financial modelling/ analysis, including gate fees, tariffs, and an outline of the optimal return on investment including pay-back period. [Refer to KP4]

      2.3.9 Assess delivery model and contract options

      • Assess the delivery model, do section 78 if necessary [link to Step 2.4 Municipal Systems Act Section 78 processes below].
      • How should contracting be done? – different types of contracting [link to Step 2.4.4]

      2.3.10 Value assessment

      • Is it affordable?
      • What are the avoided costs?
      • Does it provide value for money? What are the benefits and costs associated with the project.
      • What are the risks – technology, financial?
      • Does it appropriately transfer risk from the municipality to the private party?

      [Refer to KP4][Link to avoided cost and risk analysis paragraphs] [Link to comparative service delivery table]

      2.3.11 Recommend option to implement

      • Confirm feasibility.
      • Can the project be implemented sustainably with the material and human resources available?

      2.3.12 If the proposed project is found to be NOT FEASIBLE, back up options?

      Back to basics! It is possible to improve the operational standards, efficiency, coverage and level of service of existing waste activities even if it is not possible to implement an AWT option. With good leadership and commitment, it is possible to:

      • Improve collection service efficiency and coverage?
      • Improve the standards of fleet management (optimisation of routes etc.) and plant operation?
      • Improve standard of operation of disposal site to maximise airspace and reduce adverse impacts?
      • Improve compaction, cover, site development, leachate and gas control to comply with legislation?
      • Divert recyclable and compostable materials away from landfill wherever possible by increasing public awareness and supporting external waste initiatives?
      • Motivate waste staff by recognising good practice, coaching, mentoring, and team building?
      • The Waste Management Officer has an important role in identifying and facilitating implementation of such activities.
      • Revise by-laws and tariffs and/or gate fees where needed.
      • Other??….. [Link to Good Waste Management Practice Toolkit, CSIR]
      Additional consideration should be given to the full Municipal Service Delivery and PPP Guidelines

       

      Refer relevant Knowledge Products:

      KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016

      KP5: Operator Models and Business Opportunities in Advanced Waste Treatment for SA: Guidance. DEA. 2016.Concept Draft]

      A Municipal Solid Waste (MSW) status quo assessment which would have been part of the IWMP will provide the municipality with a better understanding of waste management in their area. It includes the current status with regard to the delivery of services, number of residents, demographic profile and socio-economic composition of a municipality.

      This status quo assessment provides further indication of:

      • Size of existing landfill site
      • Quantity of material available for recovery
      • Characterisation/classification of waste
      • Effectiveness of existing recycling programs
      • Appropriate size of existing treatment and recycling facilities
      • Information resources, namely financial and human capital including equipment must also be indicated under this section.

      The collected data should then identify priority waste streams to be addressed. The assessment will form the basis for analysing what treatment technologies (if any) will be viable to treat the identified priority waste stream(s).

      The IWMP will also indicate the adequacy of current systems and processes in place for handling a waste treatment project. The effective management of municipal solid waste relies on a clear institutional setup in which roles and responsibilities are defined. This includes the various departments within the municipality as well as the interface between the municipality and private sector. Each stage of the waste management process (waste collection, transport, disposal, transfer stations etc.) must be considered and responsibility assigned accordingly.

      KP5 p20
      The institutional roles of client, operator, and revenue collector have to be recognised regardless of whether a model is municipal, inter-municipal, or has private sector participation. Each of these roles has a different function in providing waste management services, and they require a different set of capacities and skills. The key management criteria in this context comprise, among others:

      • High User Inclusivity, the extent to which stakeholders have access to, and influence on, how the system works, is relevant to the management of services under all model types.
      • Appropriate, affordable, and applicable technical solutions ensure investments into systems that are suitable, affordable, and interface well with already functioning systems, infrastructure, and technologies.
      • Transparency in decision-making and procurement helps to ensure that the available resources are going where they are supposed to.
      • The importance of piloting new initiatives prior to full rollout will help reduce the risks that are associated with any change made to the existing system.
      • The existence of reliable and consistent data will facilitate better decision-making when choosing technical solutions.
      • A focus on household waste will help to concentrate scarce resources/efforts, and therefore lead to better results in municipal integrated solid waste management (ISWM).
      • Institutionalising good management practices is beneficial to any operator model.

      KP5 p21
      There are three financial management practices that are equally important to any model’s successful implementation:

      • Cost accounting – this is good management practice, and is more regularly and robustly done when the private sector is involved.
      • Awareness of costs and revenues-and thus working towards balancing the budget, will increase the reliability of the service.
      • Approaching full-cost recovery, namely working towards paying for operational costs and refinancing from local budgets will help to keep the service running at a reliable quality.

      Avoided costs:

      The avoided cost of landfilling and airspace plus revenues from recovered materials and energy may, in certain cases, tip the balance in favour of AWT. The difference between the Full Costs and the Avoided Costs represents the ‘cost jump’ the municipalities need to calculate when evaluating the business case for AWT. The cost jump to the municipality can be calculated by subtracting the costs of landfilling and airspace, cost of cleaning up illegal dumps, and revenues from the sale of materials from the full cost of treatment.

      Municipal Systems Act Section 78 Process Diagram

      [caption id="attachment_3254" align="alignnone" width="506"] [click to enlarge][/caption]Municipal Waste Management – Good Practices.2011. CSIR. 

      Legislation related questions to ask during a technical options feasibility/analysis

       

      [Link to 2.3.7]

      This is usually done by consultants.

      One component of the technical options analysis is the consideration of local, provincial and national legislation which applies to each option (link to 2.3.7). This may influence design, required resources and timing of each option. The list below is not exhaustive, but is indicative of the legislation that should be taken into account. Municipalities must endeavour to consider all relevant legislation related to each proposed option.

      National legislation

      In assessing each option, the following questions should be asked:

      • Does the option require any permissions?
        • an environmental authorisation in terms of the National Environmental Management Act, 1998 (Act No. 107 of 1998)
        • a waste management licence in terms of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008)
        • registration on the South African Waste Information System
        • an atmospheric emission licence in terms of the National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004)
        • a water use licence or registration under a general authorisation in terms of the National Water Act, 1998 (Act No. 26 of 1998)
        • a coastal waters discharge permit in terms of the National Environmental Management: Integrated Coastal Management Act, 2008 (Act No. 24 of 2008)
        • a generation licence in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), if electricity will be generated
        • a gas licence in terms of the National Energy Regulator Act, 2004 (Act No. 40 of 2004), if the option involves the construction and/or operation of gas transmission, storage, distribution, liquefication and re-gasification facilities
        • approval from the relevant heritage body
      • Are there norms and standards for the activity?
        • Waste: norms and standards have been published for storing waste, extraction, flaring or recovery of landfill gas and scrapping or recovery of motor vehicle
        • Air quality: atmospheric emission standards have been identified for activities which require an atmospheric emission licence as well as small boilers and small-scale char and charcoal plants.
      • If there are proposed sites under consideration, are there any restrictions on the land use?
        • Are proposed properties correctly zoned for the intended use?
        • Does the site fall within any protected area or ecosystem?
        • Are there any known protected species occurring on these sites?
        • Is the land contaminated?

      Provincial legislation

      Most provinces have laws relating to biodiversity and conservation. Municipalities should consider these laws in the context of the options being assessed.

      Local by-laws

      Municipalities must consider the by-laws that are already in place within their jurisdiction. For example, many municipalities require that waste transporters be registered, effluent discharge permits must be obtained, noise/nuisance control measures are in place according to municipal bylaws.

      PERMISSIONS

       

      Environmental authorisation

      If any of the options trigger a NEMA listed activity, an environmental authorisation must be obtained prior to any construction of the facilities.

      • if a Listing Notice 1 activity (GNR.983 of 4 December 2014) (see link) will be triggered, a basic assessment must be undertaken as part of the application process.
      • If a Listing Notice 2 activity (GNR.984 of 4 December 2014) (see link) will be triggered, a scoping and environmental impact reporting process must be undertaken as part of the application process.
      • If a Listing Notice 3 activity (GNR.985 of 4 December 2014) (see link) will be triggered, a basic assessment must be undertaken as part of the application process.

      These processes are set out in the Environmental Impact Assessment Regulations, 2014 (see link).
      For these processes, independent environmental assessment practitioners must be appointed.

      Waste management licences

      If any of the options are listed as ‘waste management activities’, either a waste management licence or compliance with norms and standards is required. The current list of waste management activities was published on 29 November 2013 (GN 921 of 29 November 2013). You can find this list of activities here [Link]. The listed waste management activities relate to the construction and operation of waste facilities, including:

      • storage of hazardous and general waste
      • recycling or recovery of hazardous and general waste
      • treatment of general and hazardous waste
      • disposal of hazardous and general waste
      • the construction, expansion and decommissioning of facilities for any of the above

      This means that a licence, or registration in terms of the relevant norms and standards, is required before construction of facilities, any expansion to them, or their decommissioning. The activities are divided into three categories, based on the nature of the waste, the capacity of the facility and the type of activity:

      • Category A activities require a waste management licence and a basic assessment process must be followed as part of the licence applicatio These activities are deemed to have a lower impact on the environment than Category B activities and include general waste and limited hazardous waste activities. The basic assessment process is set out in the EIA Regulations, 2014 (GNR.982 of 4 December 2014). [Link].
      • Category B activities require a waste management licence, and a scoping and environmental impact reporting (S&EIR) process as part of the licence applicatio They are deemed to have a more significant impact on the environment and hence the need for a more detailed assessment. The S&EIR process is set out in the EIA Regulations, 2014 (GNR.982 of 4 December 2014). [Link]
      • Category C activities: This is a category of waste management activities introduced in GN 921 of 29 November 2013. These ‘low impact’ activities do not require a waste management licence, but must comply with the relevant requirements or standards determined by the Environment Minister for that activity. [links to regulations below]

      Fees for waste management licences (WMLs) are prescribed (GN 142 of 28 February 2014). See [Link]

      Registration on the South African Waste Information System

      The National Waste Information Regulations, 2012 (GNR.635 of 13 August 2012) [link] require persons conducting any activities listed in its Annexure 1 to register on the South African Waste Information System, and to submit quarterly reports with prescribed information.

      Atmospheric emission licences

      If any of the options are listed in GN R893 of 22 November 2013 [link], an atmospheric emissions licence (AEL) is required. The process for applying for an AEL is set out in Chapter 5 of the National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004) NEM: AQA. [link]

      Fees for AEL applications are prescribed in GN 250 of 11 March 2016. See [Link].

      Water use licence

      In terms of the National Water Act, 36 of 1998 (NWA) [Link], the following water uses are regulated:

      • taking water from a water resource;
      • storing water
      • impeding or diverting the flow of water in a watercourse;
      • engaging in a stream flow reduction activity contemplated in section 36;
      • engaging in a controlled activity identified as such in section 37(1) or declared under section 38(1);
      • discharging waste or water containing waste into a water resource through a pipe, canal, sewer, sea outfall or other conduit;
      • disposing of waste in a manner which may detrimentally impact on a water resource;
      • disposing in any manner of water which contains waste from, or which has been heated in, any industrial or power generation process;
      • altering the bed, banks, course or characteristic of a watercourse;
      • removing, discharging or disposing of water found underground if it is necessary for the efficient continuation of an activity or for the safety of people; and
      • using water for recreational purposes.

      If the options include any of these water uses, the municipality may require a water use licence or have to comply with a general authorisation, depending on the thresholds. The application procedure for a water use licence is described in section 40 of the NWA.

      The municipality must first consider whether the proposed new water use falls within the scope of Schedule 1 of the NWA.

      If not, the municipality must then consider whether the proposed new water use falls within the scope of any of the general authorisations:

      • (a) and (b): See General Authorisation (GN 538 of 2 September 2016) [Link]
      • (c) and (i): See General Authorisation (GN 509 of 26 August 2016)  [Link]
      • (e), (f), (g), (h) and (j): See General Authorisation (GN 665 of 6 September 2013) [Link]

      If the new water use does not fall within the scope of the relevant general authorisation, then a water use licence will be required.

      Coastal waters discharge permit

      If the option involves the discharge of effluent from a source on land, a permit is required in terms of section 69 of the National Environmental Management: Integrated Coastal Management Act, 2008 (Act No. 23 of 2008) [Link]]

      Electricity generation licence

      If the option involves the generation, transmission, distribution, import or export of, or trading in electricity (other than for own use), a licence will be required in terms of section 7 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) [Link]

      Gas licence

      The Gas Act, 2001 (Act No. 48 of 2001) [Link] requires that a licence be obtained for the following activities:

      • construct gas transmission, storage, distribution, liquefaction and regasification facilities or convert infrastructure into such facilities;
      • operate gas transmission, storage, distribution, liquefaction or regasification facilities; or
      • trade in gas.

      The licensing process and requirements are set out in the Gas Act.

      Heritage

      In terms of the National Heritage Resources Act, 1999 (Act No. 225 of 1999) (NHRA) [Link], certain activities require approval from a heritage authority. The municipality should consider whether any such approvals are required. The NHRA Regulations (GNR.323 of 7 April 2000) [Link] prescribe how applications are to be made to the South African Heritage Resource Agency (SAHRA), the relevant procedures to follow and the type of experts which may be employed for heritage studies and related approvals. Provincial heritage legislation must also be considered.

      NORMS AND STANDARDS

      Waste norms and standards

      It is important that applicable norms and standards are considered in the design of the options. If any of the options are listed as ‘waste management activities’ in Category C [Link to list of waste management activities: [Link], compliance with prescribed norms and standards is required. The following national norms and standards have been published:

      • National norms and standards for the storage of waste [Link] (GN 926 of 29 November 2013);
      • National standards for the extraction, flaring or recovery of landfill gas [Link] (GN 924 of 29 November 2013); and
      • National standards for the scrapping or recovery of motor vehicles [Link] (GN 925 of 29 November 2013).

      Furthermore, standards exist for:

      • The disposal of waste to landfill (GN R636 of 23 August 2013) [Link];
      • The assessment of waste for landfill disposal (GN R635 of 23 August 2013) [Link]; and
      • Design and related requirements for the thermal treatment of general and hazardous waste in the National Policy on the Thermal Treatment of Hazardous and General Waste (GN.R777 of 24 July 2009) [Link].

      Air quality norms and standards

      NEM: AQA makes provision for the declaration of controlled emitters. These controlled emitters will be subject to prescribed standards:

      • Small boilers, being any combustion appliance designed to heat water with a design capacity equal to 10MW but less than 50MW net heat input per unit, based on the lower calorific value used (See: GN 831 of 1 November 2013) [Link];
      • Small-scale char and small-scale charcoal plants, being char plants with a design production capacity not exceeding 20 tons of char per month, and charcoal plants with a design production capacity not exceeding 20 tons of char per month, respectively (see: GN 602 of 18 September 2015) [Link]; and
      • Temporary asphalt plants, being asphalt plants that are used for the sole purpose of supplying asphalt for a specific road paving contract not exceeding a period of 24 months. (See: GN 201 of 28 March 2014) [Link].

      Furthermore, ambient air quality standards exist for certain emissions (SO2, CO2, PM10, Pb, CO, C6H6, PM2.5), which must be considered in atmospheric emission licensing processes. See:

      • National ambient air quality standards (GN 1210 of 24 December 2009) [link:]; and
      • National ambient air quality standard for particulate matter with aerodynamic diameter less than 2.5 micron metres (PM2.5) (GN 486 of 29 June 2012) [Link].

      LAND USE

      Correct land use

      The municipality should consider its zoning scheme to determine what the zoning is for the property. If the site is not zoned for the intended use, or if there are restrictions on the use of the land, the municipality must consider:

      • In accordance with the specific planning by-laws, zoning scheme and provincial planning legislation, if the site needs to be rezoned, if special consent is required, if a departure is needed, or it is necessary to subdivide or consolidate land; and
      • If permission from the national Department of Agriculture is needed to use agricultural land in terms of the Subdivision of Agricultural Land Act, 1970 (Act No. 70 of 1970) [Link].

      Protected area or ecosystem

      The municipality must check whether the site falls within any protected area. See DEA’s protected area register. [Link]

      • For special nature reserves, national parks, nature reserves and protected environments, consider the implications of the National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003) (NEMPAA) [Link] as well as any provincial laws relating to protected areas. In some cases, specific regulations for the protected area have been published.
      • For special nature reserves, also consider the Regulations for the Proper Administration Of Special Nature Reserves, National Parks and World Heritage Sites [Link].

      For nature reserves, also consider the Regulations for the Proper Administration of Nature Reserves (GN.R99 of 8 February 2012) [Link].

      • For world heritage sites, consider the implications of NEMPAA and World Heritage Convention Act, 1999 (Act No. 49 of 1999) [Link];
      • For marine protected areas, consider the implications of NEMPAA;
      • For specially protected forest areas, forest nature reserves and forest wilderness areas declared in terms of the National Forests Act, 84 of 1998, consider NEMPAA and the NFA [Link];
      • For mountain catchment areas declared in terms of the Mountain Catchment Areas Act, 1970 (Act No. 63 of 1970) MCA, consider NEMPAA and the MCA [Link];

      The municipality should also consider whether the land falls within a listed ecosystem in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004) [Link]. The National List of Protected Ecosystems can be found here. [Link]. This will have implications under Listing Notice 3 of NEMA. [Link to relevant section above]

      Protected species

      Although it may not be known at this stage of the process, the municipality should consider the fact that protected species may occur on the site, and that additional permits may be required to undertake activities on that site.

      The Lists of Critically Endangered, Vulnerable and Protected Species may be found here (GN.R151 of 23 February 2007) [Link].

      To find out how these species are regulated, when permits are needed, and how to apply for a permit, consider the Threatened or Protected Species Regulations, 2007 (GN.R152 of 1 June 2007) [Link].

      Certain tree species are also protected, and activities involving such protected species are regulated in terms of the NFA. These lists are updated and published frequently, so be sure to consider the most recent version. The Regulations on the National Forests Act, 84 of 1998 (GN. R466 of 29 April 2009) can be found here. [Link].

      Contaminated land

      Using land which is contaminated can have serious resource and timing implications for a municipality. ‘Contaminated’ refers to the presence in or under any land, site, buildings or structures of a substance or microorganism above the concentration that is normally present in or under that land, which substance or microorganism directly or indirectly affects or may affect the quality of soil or the environment adversely. Part 8 of Chapter 4 of NEMWA sets out the procedure for the identification and remediation of contaminated land, and is read together with the National Norms and Standards for the Remediation of Contaminated Land and Soil Quality (GN 331 of 2 May 2014) [Link].

      Building plan approval

      The National Building Regulations and the National Building Regulations and Building Standards Act require that approval for demolition of existing buildings and the erection of buildings is obtained.

      Link to Act: [Link]

      Link to Regulations (GN.R2378 of 12 October 1990): [Link]]

      2.2: Screen possible waste treatment options

      Use the diagram: Waste types and required quantities for AWT options to determine at a prefeasibility level which (if any) alternative waste technologies would be appropriate for your waste material. This diagram helps you to filter out, at a high level, the non-viable technology options where your quantities of waste will not achieve the necessary economies of scale.

      The screening diagram considers eight different treatment options against minimum quantities for different types of municipal waste. Only general waste is considered in this guide because hazardous wastes are almost exclusively dealt with by private sector specialist waste service providers. Once you know the type and quantities of each type of waste material from your municipality, you can check these against the screening diagram to see which treatment options would be suitable for further investigation in a feasibility study. [Note: this link will change to one which links to the DEADP/GreenCape Technical Guide for Technology Identification and Screening, an interactive tool currently being developed]

        Explanation   Get more detail
      Use the screening diagram of waste types and required quantities [Right] 

       

      COMING SOON! Technical guide for technology identification and screening for integrated waste management planning: Manual. [DEADP/GreenCape excel screening tool

      Go to this screening tool (currently under development) to identify at a broad level waste treatment option(s) that are potentially appropriate for each type and quantity of municipal solid waste in your municipality.

      The diagram below shows the different fractions of domestic waste and gives an indication of the minimum domestic waste quantities needed to pursue specific technology options.

       

      Screening diagram of waste types and required quantities for different AWT options [Click for enlarged image]

       (Source: Technical guide for technology identification and screening for integrated waste management planning: Manual. DEADP/GreenCape)[/caption]

      Sub-Walkthrough

      Jump to Section:

      • 2.2.1: Screening of waste type and quantity against potential treatment options
      • 2.2.2: Pre-feasibility: high level comparison to shortlist potential options for detailed feasibility study
      • 2.2.3: Council approval and budget for detailed study of pre-selected option(s)

      2.2.1: Screening of waste type and quantity against potential treatment options

        Explanation   Get more detail
      Check your types and quantities of waste materials against the treatment options

       

      The screening diagram will identify what treatment options are possible for your types and quantities of domestic waste.

      Eventually the aforementioned screening methodology (Waste Technology Diagram) will be replaced by the interactive technology screening tool currently being finalised by GreenCape for W Cape DEADP comprising interactive calculating excel spreadsheets. [ref. GreenCape Technical Guide for technology identification and screening for integrated waste management planning. 2017 – under development]

      The DEADP/GreenCape Screening tool does not address some technologies which are unlikely to be implemented for treating municipal solid waste in developing countries in the short to medium term because of the following:

      • lack of or limited skills and technical capacity for implementation
      • limited information on implementation of technologies, particularly in developed countries
      • high cost of technologies.

      Treatment options that are not commonly used in South Africa for treating municipal solid waste and that are not considered in the GreenCape screening tool are:

      • In Vessel Composting (IVC)
      • Gasification
      • Mechanical heat treatment
      • Plasma arc treatment
      • In-Vessel Composting is included in this AWT web guide since some feasibility work has recently been carried out on this option [Hyperlink to locally-hosted DEA Knowledge Product 4 and locally hosted DEA-GIZ Climate Support Programme – Waste Management Flagship. 2016. The Diversion of Municipal Solid Waste Away from Landfills in 6 South African Municipalities. Case Studies Report. Consolidated Special Activity Report”]
      • Pyrolysis is also considered in this web guide as a possible treatment option but it is not a suitable technology for unsorted municipal waste. It requires a minimum quantity of a homogenous waste stream, for example of waste tyres or hard plastics, of approximately 60 000 tonnes[1] per annum [Hyperlink to locally-hosted DEA Knowledge Product 4].
      • Mechanical Biological Treatment is the term for a combination of more than one treatment technology and therefore depends on the options chosen. It will usually require at least 190 000 tonnes unsorted municipal waste per annum for the operation to be viable[1] KP 4 gives indicative quantities
      There are different options for treating municipal solid waste to reduce the amount of waste that is disposed of in a landfill. These include technologies that are suited to treating mixed residual waste streams as well as source-segregated wastes such as recyclables, food waste and garden (green) waste.

       

      Alternative waste treatment technologies usually use one, or a combination, of the following processes:

      • Mechanical treatment
      • Biological treatment
      • Thermal treatment

      Alternative waste treatment technologies transform waste into a valuable resource. This section illustrates the different treatment types that may be of benefit to a municipality or private entity managing waste products.

      This guide describes 9 alternative waste treatment technologies. They vary in financial implications, required skills, sensitivity to waste composition and quantity and outputs. Not all have been successfully applied in South Africa or internationally. The table gives some guidance around the track record of different technologies in the short (up to 2 years), medium (2 to 5 years) and long term (more than 5 years) as well asinputs and outputs.

       

      Table: Waste Treatment Options / Processes- INPUTS AND OUTPUTS

      DURATION

      TREATMENT OPTION

      FULL COST* (ZAR/t/a)

      INPUT MATERIALS

      OUTPUT MATERIALS

      SHORT TERM
      Proven technology in South Africa, comparatively low financial implications and skills requirements, and suitable to local waste composition

      Open windrow composting (aerobic process)

      R300 – R400

      Putrescible/organic waste and garden/food waste Compost

      Clean material recovery facility

      R300 – R400

      Mixed dry recyclable material from domestic and commercial sources Recyclables, aggregates

      Dirty material recovery facility

      R300 – R500

      Unsorted or residual domestic waste, commercial and industrial waste, construction and demolition waste Recyclables, aggregate, refuse derived fuel (RDF)

      Landfill gas to energy

       

      Electricity, thermal energy and biomethane for vehicle fuel

      MEDIUM TERM
      Proven technology in South Africa, comparatively low financial implications and skills requirements, and suitable to local waste composition

      Mechanical Biological treatment

      R300 – R500 (simple)
      R700 – R900 (with intensive fermentation)

      Sorted or unsorted domestic waste, commercial and industrial waste, certain fractions of construction and demolition waste and refuse derived fuel (RDF) Energy (biomethane, heat), recyclables, fines, compost-like stabilized material, RDF

      Anaerobic digestion

      R700 – R800

      Putrescible/organic waste and garden/food waste Biomethane, heat and electricity, nutrient-rich compost-like digestate/soil conditioners
      In-vessel composting

      >R600

      Municipal solid waste (MSW), commercial and industrial waste and wet type Compost

      Incineration

      R1200 – R1500

      Residual domestic waste, commercial and industrial waste, certain fractions of C&D waste, RDF Electricity, heat, incinerator bottom ash (IBA), air pollution control (APC) residues

      LONG TERM
      No track record of successful application with MSW, high financial implications and skills requirements, and high sensitivities to waste composition.

      Pyrolysis

      R500 – R1700

      Commercial and industrial waste and
      Selected homogenous waste streams e.g. tyres, hard plastics.
      Electricity, fuels of various kinds (diesel substitute and heavy furnace oil) heat; char, ash, slag

       

       

      *KP4 p7

         

      (Source: KP4 – Hyperlink to locally-hosted DEA-KfW Knowledge Product 4 – Financial implications of Advanced Waste Treatment – Guidance. July 2016)

      Comparative cost of landfilling municipal waste without any sorting or recovery is R200 – R400 per tonne per annum (Source KP4….) [Hyperlink to locally-hosted KP4]

      Overview of waste technologies
      [see 2.2.2 AWT options comparative matrix with colour coding system]

       

      Short term promising technologies
      Proven technologies in South Africa, which can be implemented in the short term within one to two years, because they have comparatively low financial implications and skills requirements, and have strong potential for wide scale application for AWT in South African municipalities under the current market conditions

      • Open Windrow Composting
        Composting is the simplest form of biological treatment and is suitable for the treatment of some source-segregated biological or organic / putrescible waste streams, with compost as the output.
      • Clean Material Recovery Facility
        A clean materials recycling facility (MRF) is suitable for the processing of dry mixed recyclables that are separated at source. Outputs are recyclable materials.
      • Dirty Material Recovery Facility
        A dirty material recycling facility (dMRF) involves separating valuable materials from a mixed, unsorted ‘dirty’ waste stream. Outputs are recyclable materials and residual waste
      • Landfill Gas to Energy
        Landfilling is the mass disposal of waste to land under controlled circumstances. Energy can be recovered from the waste through collection of gases, such as methane and carbon dioxide resulting from natural decomposition of the waste. Outputs are biogas with the possibility of electricity

      Medium term potential technologies
      Proven technologies in South Africa, which can be implemented in the medium term (2 to 5 years) because, even though they are more costly than landfilling in financial terms, there are external factors that make them financially viable under specific conditions, for example very high landfill costs; strong demand for AWT outputs.

      • Mechanical Biological Treatment
        MBT combines both mechanical and biological treatment methods. These will be supported by a combination of pre-treatment and sorting techniques and a selection of emissions and quality control techniques. Outputs are dependent on treatment methods but could be biogas (and electricity), recyclables and compost-like digestate.
      • Anaerobic Digestion
        Anaerobic digestion (AD) is the decomposition of organic waste (putrescible/garden/food waste) in the absence of oxygen, resulting in the production of biogas. Outputs are biogas and electricity and compost-like digestate
      • In-Vessel Composting
        In-vessel composting (IVC) is a way of accelerating the composting process within an enclosed environment.
      • Incineration
        Incineration is the mass burning of waste to reduce the volume of waste and enable the production of energy in the form of electricity and/or heat.

      Long term potential technologies
      Technologies with little track record of successful application in SA, with high financial and skill requirements and usually high sensitivities to waste composition. These would be long-term options, taking in excess of 5 years to implement, and which are unlikely to have applications in SA unless under exceptional circumstances or for specific waste streams. Implementation would probably face several delays over an extended period.

      • Pyrolysis
        Pyrolysis is a thermal treatment where a substance is degraded at high temperatures (more than 200°C) in the absence of oxygen. The outputs are fuels of various kinds, electricity, heat and char.
      Waste Stream Diagram
      The diagram relates waste quantities available for the treatment option after waste reduction initiatives have removed waste materials from the general waste stream. For some options, certain waste streams are more suited than others and are reported as such.[Hyperlink elements of diagram to text explanations and to case studies – Appendix 1 of this report

       

      • KP2: Appropriate Technology for Advanced Waste Treatment DEA 2015
      • KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016
      • You can find out more about 9 alternative treatment options [Hyperlink to locally-hosted KP4: Financial Implications of Advanced Waste Treatment: Guidance. DEA. 2016
      • DEA-GIZ Climate Support Programme – Waste Management Flagship. 2016. The Diversion of Municipal Solid Waste Away from Landfills in 6 South African Municipalities. Case Studies Report. Consolidated Special Activity Report”
      • Open Windrow Composting
      • Clean Material Recovery Facility
      • Dirty Material Recovery Facility
      • Landfill Gas to Energy
      • Mechanical Biological Treatment
      • Anaerobic Digestion
      • Incineration
      • In Vessel Composting
      • Pyrolysis

      Link to locally-hosted KP 2, 4 and 5

      Additional treatment option

       

      • Nutrient upcycling is new to South Africa and can be read up on in the links included in this guide:
      • http://agriprotein.com/press-office/
        http://agriprotein.com/our-impact-partners/
        http://agriprotein.com/our-technology/
        http://agriprotein.com/our-products/
      • Salomone, R., et al., Environmental impact of food waste bioconversion by insects: Application of Life Cycle Assessment to process using Hermetia illucens, Journal of Cleaner Production (2016), http://dx.doi.org/10.1016/j.jclepro.2016.06.154
      • DEA-GIZ Climate Support Programme Waste Management Flagship. 2016. Case
        Studies’ Report. Consolidated Special Activity Report

      2.2.2: Pre-feasibility: high level comparison to shortlist potential options for detailed feasibility study

        Explanation   Get more detail
      In assessing AWT options at a preliminary level, take into account key aspects such as affordability, reducing greenhouse gas emissions, implementing the more desirable waste management options in the hierarchy of waste management, water usage and job creation potential etc.

       

      Options ranked according to how green the treatment option is – Hover/ click on matrix and read more about suitability:

      Criteria for pre-feasibility rating:

      Affordability – CAPEX

      Affordability – OPEX

      Ease of meeting skills requirements

      Job creation potential

      Water conservation

      Reduction of GHG emissions

      Diversion of waste from landfill

      Volume reduction of output

      Desirability in WM hierarchy – achievability of NWMS goals

      Reduced risk to municipality/proven track record of successful implementation in developing country context

      Prefeasibility AWT options comparative matrix [click for enlarged image]

      Links to legislative requirements – [The legal requirements section will be much the same across feasibility studies, but Layer 1 detail on legal aspects should be accessible from here too.]

      Clean MRF
        

      Open Windrow Composting
         

      Dirty MRF
       

      Landfill Gas Extraction
        

      Anaerobic Digestion
         

      MBT

      Incineration

      In Vessel Composting

      Pyrolysis
       

      2.2.3: Council approval and budget for detailed study of pre-selected option(s)

        Explanation   Get more detail
      Presentation to council and consultation to approve the pre-selected option(s) and give the go-ahead for budget to appoint professional consultants to do the detailed feasibility study and Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) (MSA) Section 78 process where required. Hyperlink to locally hosted summary MSA Section 78 Process
      The implementation of alternative waste treatment (AWT) options by municipalities and by the private sector triggers several complex legislative and regulatory requirements.

       

      This section provides an overview of the policy and regulatory framework within the waste sector with particular reference to the 9 treatment options presented in the Waste Treatment Guide. The aim is to enable a more efficient process for securing the required environmental approvals for AWT projects under consideration.

      Please note that each AWT technology has specific legislative requirements that need to be considered as well as obtaining permits and licenses for various regulatory procedures. These permitting and licensing processes would require specialist environmental, legal and town planning professionals to undertake the applications for licences and approvals where required.

      Please take note that only specific technologies will use Acts relating to energy producing options that produce energy in the form of electricity, biogas and liquid fuel. These could include landfill gas to energy and waste to energy (anaerobic digestion, MBT, incineration and pyrolysis), as confirmed by a professional consultant.

      A number of additional legal requirements might also be applicable such as:

      • National Policy in Thermal Treatment of General and Hazardous Waste GN 777, in Government Gazette No. 32439 of 24 July 2009
      • National Domestic Waste Collection Standards 2010
      • Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)
      • Infrastructure Development Act, 2014 (Act No. 23 of 2014)
      • National Building Regulations and Building Standards Act, 1977 (Act No.103 of 1977)

      It is therefore the responsibility of the project developer to check the applicability of legal requirements with the appointed environmental practitioner (EAP) and/Town Planner

      Selected regulatory requirements for alternative waste treatment projects
      DEVELOPMENTAL / IMPLEMENTATION

       

      Subdivision of Agricultural Land Approval
      Department of Agriculture, Forestry and Fisheries
      6 to 12 months

      Building Plan Approval
      Municipality
      30- to 90 days

      Construction Work Permit
      Provincial Director of the Department of Labour
      30 days

      Land Use Approval
      Municipality
      1 year

      Notification of Major Hazard Installation
      Chief Inspector & Provincial Director of the Department of Labour & Local Authority
      120 days

      Appointment of Health and Safety Representative
      n/a

      Establishment of Health and Safety Committee
      n/a

      Notification of Construction work to Department of Labour
      Provincial Director of the Department of Labour
      7 days

      ENVIRONMENTAL

       

      Water Use Licence
      Department of Water Affairs and Sanitation
      1 to 4 years

      Atmospheric Emissions Licence
      District Municipality (or Province where this function has been delegated to the Province)
      1 to 2 years

      Environmental Authorisation
      Department of Environmental Affairs
      1 to 3 years

      Heritage Approval
      South African Heritage Resources Association
      3 to 6 months

      Waste Management Licence
      Department of Environmental Affairs for hazardous waste and Provincial Waste Management Authorities in the case of general waste
      1 to 3 years

      Biodiversity Permit
      4 to 6 months (valid for 12 months)

      ENERGY

       

      Electricity Licence
      The National Energy Regulator of South Africa established in terms of the National Energy Regulator Act, 2004 (Act No. 40 of 2004) (NERSA)
      3 to 6 months

      Gas Licence
      The Gas Regulator established in terms of NERSA
      1 to 1.5 years

      Petroleum Products Licence
      The Controller of Petroleum Products
      90 days to 1 year

      1.5: Establish a Committee

      Set up a Project Steering Committee to make it easier to introduce an alternative waste treatment system in the municipality.

        Explanation   Get more detail
      The process of introducing alternative treatment options for waste in a municipality will be more sustainable if it has additional guidance from a multi-disciplinary Project Steering Committee (PSC).

       

      PSC members should include:

      • Technical Department of the municipality
      • Community Services Department
      • Local Economic Development Unit
      • Human Resources Department
      • Finance Dept / Transaction Advisor
      • National and Provincial Treasury should also be involved if a Public Private Partnership is under consideration for the project
       
      Develop Terms of Reference for the Project Steering Committee. A PSC is usually mandated to provide advice, expertise, guidance and make recommendations to achieve the goals of a project or process.

       

       

      PSC Terms of Reference could include the following:

       

      • Goal/purpose of the committee
      • Tasks and duties of the committee
      • Commitment by members to actively participate in carrying out their mandate
      • Consensus/decision-making mechanism
      • List of members of the committee
      • Frequency of meetings, venue
      • Chair and Secretariat
      • Quorum
      2.1: Identify what waste & how much

      Conduct a waste characterisation study for your municipality, if this has not yet been done as part of the Integrated Waste Management Plan (IWMP) process. Determine types, quantities, seasonality etc. of waste disposed of at your municipality. An up-to-date IWMP should already have some information on the situational analysis which will help you to identify priority waste stream(s) but usually more detailed, accurate information is needed to analyse suitable alternative waste treatment options. It is advisable to get a consultant to help you decide on exactly how to do this.

       

        Explanation   Get more detail
      A waste characterisation study is an investigation which includes the sampling, physical sorting and measurement of the different types of waste materials in a waste stream within a specific study area.

       

      You will need this information to work out how much of each type of waste material is collected and disposed of in your municipality so that you can determine what alternative waste treatment option will be viable.

      • Read about waste characterisation studies. Feasibility Study for alternative waste treatment technology Part 3: Waste characterisation study for Sept. 2014 and Nov. 2014 sampling. Gauteng Infrastructure Funding Agency on behalf of City of Johannesburg [Link]
      • Hyperlink to locally hosted Advanced Integrated Solid Waste Management System For uMgungundlovu District Municipality – Waste Characterisation Study 2010 Prepared for uMgungundlovu District Municipality by GreenEng and Hydroplan [Link to locally-hosted pdf in Layer 1]


      Sub-Walkthrough

      Jump to section:

      • 2.1.1: Plan sampling methodology
      • 2.1.2: Collect samples of waste stream
      • 2.1.3: Sort the samples into types of material
      • 2.1.4: Weigh and record quantities of each type of waste material for each sample
      • 2.1.5: Analyse the waste data
      • 2.1.6: Estimate the waste disposed (tonnes per annum) for each waste type for the whole municipality or study area

       

      2.1.1: Plan sampling methodology

        Explanation   Get more detail
      Plan and set up the sampling event with the help of a consultant
      • DEAT Working with waste – How to do
      • DEADP Waste characterisation study guide

      The number and size of samples and sampling methodology will depend on the area being sampled and the specific collection system. Take samples of waste streams that represent the different socio-economic and land use areas, and over different seasons of the year. Waste sampling should be carried out on at least two different occasions, preferably at different times/seasons of the year.

      See examples of waste characterisation studies

      • DEAT UFG for recycling
      • GreenEng/Hydroplan pdf as an example in Layer 1;
      • DEA-GIZ Flagship project detailed methodology
      • DEADP Guideline when available

      Make a note of what assumptions were made or special conditions prevailed at the time of data collection, for example definition of green waste; per capita generation rates; that the total waste quantity is based on population generation rates or actual recorded waste quantities at the landfill.

      • How to do a waste characterisation study – DEAT Working with Waste: User Friendly Guideline for Recycling pp 10 – 12 [Link to doc on DEA SAWIC Website: [Link]
      • [Hyperlink to locally hosted word document example:] GreenEng/Hydroplan Waste characterisation study in UMDM
      • [Hyperlink to locally-hosted PDF methodology] Climate Support Programme – Waste Management Flagship. The Diversion of Municipal Solid Waste Away From Landfills In 6 South African Municipalities. 2016. Waste Analysis and Composition Survey (Report) pp 48 – 57. Appendices A, B and C: Methodology, Waste Definitions; Sample Data Sheet.
      • [Hyperlink to another PDF example when available: Link when available to W Cape DEADP waste characterisation methodology guide currently being developed]

      2.1.2: Collect samples of waste stream

        Explanation   Get more detail
      Collect the samples according to the sampling methodology. Ensure that the people doing the exercise have been trained on how to use the sampling equipment and the protective measures that should be taken to ensure their safety when handling waste [Link to sampling team and equipment for sampling]. Team:
      • 1 Team leader
      • 1 Local assistant with suitable skills to assist
      • 1 to 3 sorters
      • 1 part-time municipal representative (suitably senior to assist giving instructions)
      • Access to 1 trained first aider on site.

      2.1.3: Sort the samples into types of material

        Explanation   Get more detail
      • Paper
      • Metals
      • Glass
      • Plastic
      • Garden waste
      • Builders’ rubble/construction & demolition waste
      • Residual waste (the fraction that cannot fall under other types)
      • Mark out a level area with cones to ensure safety of samplers.
      • Spread the large tarps in the demarcated area
      • Arrange labelled containers around the tarps
      • Set up the scales on level ground near the waste containers
      • Calibrate the scales with known (reference) mass – check regularly
      • Weigh the empty containers (and check this tare mass from time to time)
      • Check samples visually for adequacy
      • Mix the waste in each sample
      • Sort into the different types of materials separating material types, for example metal lids from glass jars
      • Sort waste until remaining waste particles are down to approx. 10mm – this goes into the residual waste container.
      Equipment:
      • 5 Spades, 5 pitch forks/rakes, 5 hand brooms, bag-splitting and waste picking tools
      • 10 heavy duty sacks or plastic waste containers (75 litre capacity) labelled for each sub-category of waste for collecting and weighing separated wastes
      • 2 wheelbarrows
      • 1 large canopy/gazebo to provide shade or shelter from heavy rain
      • 4 to 8 traffic cones
      • Digital scale for weighing the samples and waste fractions
      • Crane scale with capacity of 125 kg
      • Paper pad, forms for recording mass
      • Pens
      • Five heavy-duty tarps
      • Cleaning materials: buckets. liquid soap, disinfectant and scrubbing brushes for personal hygiene and daily cleaning of tools (or access to wash area)
      • Tables and work surfaces
      • Health and safety personal protective equipment (PPE) for all involved in the exercise: reflective jackets, protective gloves, protective eye-wear and masks, safety shoes/boots, overalls
      • First Aid Kit
      • Provision of drinking water and lunch for samplers each day and regular rest-breaks in shade between each sample to be analysed.

      2.1.4: Weigh and record quantities of each type of waste material for each sample

        Explanation   Get more detail
      • Date
      • Name of site
      • Name of person sampling
      • Time of sampling
      • Vehicle details (type and registration)
      • Origin of waste
      • Weather conditions

      After weighing, remove the wastes from the sorting area in wheelbarrows (or wheeled loader) to the landfill operational area.

      • Link to locally hosted templates of waste record sheets as seen in Advanced Integrated Solid Waste Management System For uMgungundlovu District Municipality – Waste Characterization Study 2010 Prepared for uMgungundlovu District Municipality by GreenEng and Hydroplan
      • The types of waste should be considered in the context of Regulation 4 of the Waste Classification and Management Regulations (GNR.634 of 23 August 2013) [Link]

      2.1.5: Analyse the waste data

        Explanation   Get more detail
      Work out the average percentage of each waste type across the waste samples, namely paper, metals, glass, plastic, organics, residual waste, garden waste and builders’ rubble. These regulations should be read together with the norms and standards below, to understand which wastes can be disposed of at which landfills:
      • The disposal of waste to landfill (GN.R636 of 23 August 2013) [[Link]]; and
      • The assessment of waste for landfill disposal (GN.R635 of 23 August 2013) [[Link]].

      2.1.6: Estimate the waste disposed (tonnes per annum) for each waste type for the whole municipality or study area

        Explanation   Get more detail
      To do this you will need to know your municipality’s total annual waste generation rate (tonnes per annum) and the total amount of this waste that is actually collected. Get this rate from your IWMP or you can calculate it

      Calculate the total tonnes of waste per annum collected for disposal:

      • Total population of municipality x Estimated total waste generation rate of tonnes per capita per year x Percentage of people receiving a collection service
      • Using the percentages in 2.1.5, calculate the total quantity of each waste type per annum.

      This is the value that you will need for the next screening step.

      • Waste analysis and composition survey. Consolidated Special Activity Report. Climate Support Programme, Waste Management Flagship: The diversion of MSW away from landfills in 6 SA municipalities. GiZ/DEA 2016.  According to this study, to be statistically accurate, sampling requirement is reportedly 32 random samples of 100kg each at any one site.
      • http://www.statssa.gov.za/
        Statistics SA (accessed Feb 2017)
      • [Link] DEA National waste information baseline report 2012
      • http://www.statssa.gov.za/
        Statistics SA (accessed Feb 2017) % population receiving collection service.  If service coverage is given per household, multiply the number of households by the average number of people per household and calculate the percentage of total population receiving a collection service.
      1.4: Council Resolution

      Obtain the go-ahead and requisite authorisation from Council for the required expenditure.

        Explanation   Get more detail
      A municipality may only incur expenses where these have been approved in a budget in terms of the Local Government Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA).

       

      It is therefore important that any necessary expenditure on waste management preliminary investigations or follow-on activities forms part of the municipality’s annual budget.

      You will therefore need to build capacity around waste-related processes and activities with your Councillors and your Municipal Executive Committee. Decision-makers need to understand the processes that are required to determine feasibility and implementation requirements so that they are able to give support in the form of a council resolution to make the necessary budget and resources available.

      • See section 15 of the MFMA [Link]
      1.2: Prepare an Integrated Waste Management Plan (IWMP)

      Prepare an Integrated Waste Management Plan (IWMP) for your municipality where waste management activities are planned and budgeted for in a coordinated and consultative way. The WMO, who is responsible for co-ordinating waste management in the municipality, must ensure that the IWMP is prepared, implemented and regularly updated.

        Explanation   Get more detail
      The development of an IWMP is a key process and a legal requirement in terms of Chapter 3, section 11 of the Waste Act.

       

      An IWMP aims to optimise waste management by reducing waste generation, beneficiating waste materials and energy using alternative waste treatment options, and disposing only the residual wastes which cannot be further used.

      The IWMP includes an implementation plan with action plans and time frames for example how necessary infrastructure and equipment will be procured.

      If you plan to introduce alternative waste treatment options in your municipality, you will first have to analyse the current situation; determine the needs, gaps and desired end state; and investigate the available options. Once preferred options are identified, the most feasible can be determined and written into the IWMP as a prioritised project/ action plan for implementation.

      Ensure that you monitor and review progress on the implementation of your IWMP, which must be updated at regular intervals. New and updated IWMPs must be approved by the municipal Council and endorsed by the provincial Minister of the Environment (MEC).

      • See section 11(4) of NEMWA [Link]
      • An IWMP is required to include the information set out in section 12 of NEMWA [Link] as a minimum, and must report on the implementation of the plan as part of its annual performance report prepared in terms of section 46 of the Municipal Systems Act (MSyA) [Link].
      • See section 13 of NEMWA [Link] for these reporting requirements.

      There is a web-based IWMP toolkit to assist you to compile your IWMP:

       

      • Register your municipality on the online toolkit and follow the instructions.
      • Download the IWMP guideline document and IWMP toolkit user manual to inform the development of your IWMP.
      • http://toolkit.environment.gov.za/
      • http://iwmp.environment.gov.za/
      • Toolkit User Manual
      1.3: Integrate the Plan

      Once your IWMP has been approved by Council and endorsed by your provincial MEC, it must be incorporated into your municipal Integrated Development Plan (IDP), which prioritises and allocates budgets to municipal activities.

        Explanation   Get more detail
      If your municipality intends to investigate the introduction of an alternative waste treatment option, the starting point is to prioritise it in the IWMP Implementation Plan and incorporate it into the municipal IDP. Budgets to upgrade service delivery and waste infrastructure must be written into the IDP before any funding can be allocated.
      • See section 11(4)(a) of NEMWA [Link]
      • [Link to L 1 pdf 03] IDP guidelines
      • See Chapter 5 of Municipal Systems Act (MSyA) [Link]
        1.1: Designate a Waste Management Officer (WMO)

        If you are part of a state entity that has a waste management responsibility at national, provincial or municipal sphere of government you must designate a specialised official with some authority and capacity to be a Waste Management Officer (WMO). This person must be the process ‘driver’ with a support system in place for taking your municipality’s waste management to a higher level.

          Explanation   Get more detail
        The National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEMWA) states that there must be a person designated (in writing) as a Waste Management Officer (WMO) for state entities with a waste function at each sphere of government. Each municipality therefore, because it is responsible for waste management services, is required to designate a WMO.

         

        WMOs are specialised officials who are legally responsible for ensuring that the National Waste Management Strategy (NWMS) is implemented in a coordinated way. The WMO role can be designated in addition to other roles of that official if not too onerous.

        As a WMO at any sphere of government, you will coordinate activities relating to waste management and ensure that they are integrated, efficient, and compliant. You will be the focal point available to the public to address all waste management matters. The WMO will be the one to facilitate and coordinate the introduction of alternate waste treatment options with the support of the wider waste unit within the municipality, whether driven by the NWMS, the National Climate Change Response (NCCR) Policy, or any other.

        • See section 10(3) and 10(4) of NEMWA [Link]
        • [Link to L 1 pdf 01] Guideline for the designation of the Waste Management Officers as provided for in section 10 of NEMWA (Act 59 of 2008)
        • [Link to L 1 pdf 02] National Waste Management Strategy 2011
        • [Link to L 1 pdf 02] National Waste Management Strategy 2011
        • [Link to L1 pdf 03] National Climate Change Response Policy 2011
        Responsibilities of National, Provincial and Local Waste Management Officers (WMOs)
        National WMO Provincial WMO Local WMO
        Chairperson of the National Waste Forum Chairperson of Provincial Waste Forum  One per municipality
        Advises the Minister about the declaration of priority waste, Extended Producer Responsibilities (EPRs), and mandatory Industry Waste Management Plans Advises the member of the Executive Council (MEC) on waste matters  Advises municipal council and top management on waste matters
        Addresses cooperative governance issues Addresses cooperative governance issues Facilitates communication on waste activities amongst departments within a municipality
        Addresses overlapping mandates, particularly at national and provincial level  Addresses cooperation and coherence at provincial level  Promotes cooperation and coherence on waste activities at local level
        Manages stakeholders in Waste Act implementation Manages stakeholders in Waste Act implementation Manages stakeholders in Waste Act implementation and facilitates compliance from within the waste management entity
        Liaises with national Environmental Management Inspector (EMI) compliance monitoring activities Liaises with provincial EMI compliance monitoring activities Liaises with EMI compliance monitoring activities in the municipality
        National IWMP: aligns planning and reporting cycles Provincial IWMP: aligns planning and reporting cycles Municipal IWMP: aligns planning and reporting cycles
        Builds capacity in relation to Waste Act implementation Builds capacity in relation to Waste Act implementation Builds capacity in relation to Waste Act implementation; incentivises sound waste management practice and promotes public awareness
        Formulates and oversees Waste Act implementation plan   Monitors adherence to norms and standards in the delivery of waste services
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