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.
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.
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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:
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.
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Monitoring must be done according to a scheduled monitoring programme. The programme must explain:
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:
Figure 8 outlines 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.
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.
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]
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…]
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:
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.
Reports include the following:
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.
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 planning period for the IWMP is usually 5 years after which an updated IWMP should be prepared.
the full costs of your AWT operation
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 Municipal Finance Management Act. Local Government Capital Asset Management Guideline. 2008. National Treasury [Link]
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.
This would still have to be done in a cost accounting exercise per activity including:
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.
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.
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.
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.
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.
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.
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).
Source: Municipal Finance Management Act Local Government Capital Asset Management Guideline. National Treasury. 2008
Corrective maintenance (breakdowns or failures):
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:
The Maintenance Plan includes the following:
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]
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.
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]
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:
The General Machinery Regulations establish specific requirements for:
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:
Reporting of incidents:
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.
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
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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.
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).
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].
National Treasury Draft Capacity Development Strategy for Public Financial Management 31 January 2012 [Link]
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.
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 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]
Source: National Treasury. Learning Framework for Local Government 2012 COGTA-LGSETA et al.
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].
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
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.
The specific project structure for implementing the chosen waste treatment options must also be accommodated:
[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.
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.
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.
An employee at supervisor level and above must sign a performance agreement with the municipality which must contain:
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.
Contract management includes the following four steps:
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:
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
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:
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:
There should be regular progress meetings that report on project management administrative functions, from project registration and evaluation through to final project completion reports.
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 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.
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.
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:
You will need:
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:
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.
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]
* Based on the New Engineering Contract (NEC) family of documents.
# “Order form” purchase type contract.
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
(iv) Proposed contract
(v) Criteria used to evaluate proposals and tenders
Item in RFP
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:
Summary: Contents of the RFP document
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.
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 Bid Evaluation Committee would have similar representation.
Be sure to advertise the tender timeously when procurement is via a competitive bidding process.
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
Bid Evaluation Checklist
Check that tender documentation is complete:
Bid must be rejected if:
Evaluation and comparison of bids:
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.
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:
Category and subcategories
Good, adequate or poor
Where no consortium is to be formed, written confirmation that the bidder is in compliance with its applicable sector BEE charter or generic code
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.
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.
Contract(s) for operational phase:
Pitfalls in SCM Processes
Common findings in the AG’s annual reports on SCM non-compliance and irregular expenditure include:
Tendering stage violations include:
Pitfalls to avoid:
Common supply chain management errors Public SCM performance is weakened by institutional practices which include the following:
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.
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.
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:
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).
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.
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
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)
[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]
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]
Range of full specific cost ZAR/t
Capital cost as estimated % of full cost
Operational costs as estimated % of full cost
[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.
[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:
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.
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.
Sources of capital funding include:
Make application and obtain funding for CAPEX.
[Locally hosted PDF: The Municipal Infrastructure Grant. From programme to projects to sustainable services MIG booklet 2004-2007 pdf
Published for Public Comment
Carbon Offsets Paper
Sustainable Waste Management (SWM) projects
Climate Support Programme (CSP)
Others could include:
German KfW Development Bank
European Investment Bank
GTAC promotes public sector capacity building through partnerships with academic and research institutions, civil society and business organisations.
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.
Sources of operational funding include:
[hyperlink to DEA website Tariff setting tool: [Link] and Guideline as locally hosted pdf]
In terms of the Division of Revenue Act, 2015 (Act No. 1 of 2015) (DORA)
Provided that the outputs are good quality and there is a market for the product, they can become a source of additional revenue.
Follow your municipality’s specific approval process to obtain Council approval for the selected option to continue to procurement process.
The budget for a project must be incorporated into the municipal IDP and approved before the project can be implemented.
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.
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.
Suggested Business Case template/outline from KP4:
Jump to section:
The municipality must ensure that it has in place and implements its supply chain management policy in terms of section 111 of the MFMA.
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:
[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:
Furthermore, in terms of the Preferential Procurement Policy Framework Act, 5 of 2000 [Link], a preference points system must be used as follows:
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.
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.
Possible key stakeholders include:
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:
External options include:
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:
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].
Jump to Section:
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.
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].
[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
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.
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.
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.
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.‘
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
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
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.
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).
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.
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.
Review and update the baseline data if the IWMP information is incomplete or out of date.
Financial modelling/ analysis, including gate fees, tariffs, and an outline of the optimal return on investment including pay-back period. [Refer to KP4]
[Refer to KP4][Link to avoided cost and risk analysis paragraphs] [Link to comparative service delivery table]
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:
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:
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.
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:
There are three financial management practices that are equally important to any model’s successful implementation:
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.
[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.
In assessing each option, the following questions should be asked:
Most provinces have laws relating to biodiversity and conservation. Municipalities should consider these laws in the context of the options being assessed.
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.
If any of the options trigger a NEMA listed activity, an environmental authorisation must be obtained prior to any construction of the facilities.
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:
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:
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:
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:
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]
The Gas Act, 2001 (Act No. 48 of 2001) [Link] requires that a licence be obtained for the following activities:
The licensing process and requirements are set out in the Gas Act.
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:
Furthermore, standards exist for:
Air quality norms and standards
NEM: AQA makes provision for the declaration of controlled emitters. These controlled emitters will be subject to prescribed standards:
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:
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:
Protected area or ecosystem
The municipality must check whether the site falls within any protected area. See DEA’s protected area register. [Link]
For nature reserves, also consider the Regulations for the Proper Administration of Nature Reserves (GN.R99 of 8 February 2012) [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]
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].
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]]
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]
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.
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]
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:
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:
Alternative waste treatment technologies usually use one, or a combination, of the following processes:
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.
FULL COST* (ZAR/t/a)
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
Clean material recovery facility
Dirty material recovery facility
R300 – R500
Landfill gas to energy
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)
R700 – R800
R1200 – R1500
No track record of successful application with MSW, high financial implications and skills requirements, and high sensitivities to waste composition.
R500 – R1700
(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]
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
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.
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.
Link to locally-hosted KP 2, 4 and 5
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
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.]
Open Windrow Composting
Landfill Gas Extraction
In Vessel Composting
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:
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
Subdivision of Agricultural Land Approval
Department of Agriculture, Forestry and Fisheries
6 to 12 months
Building Plan Approval
30- to 90 days
Construction Work Permit
Provincial Director of the Department of Labour
Land Use Approval
Notification of Major Hazard Installation
Chief Inspector & Provincial Director of the Department of Labour & Local Authority
Appointment of Health and Safety Representative
Establishment of Health and Safety Committee
Notification of Construction work to Department of Labour
Provincial Director of the Department of Labour
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
Department of Environmental Affairs
1 to 3 years
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
4 to 6 months (valid for 12 months)
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
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
Set up a Project Steering Committee to make it easier to introduce an alternative waste treatment system in the municipality.
PSC members should include:
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.
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.
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
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.
After weighing, remove the wastes from the sorting area in wheelbarrows (or wheeled loader) to the landfill operational area.
Calculate the total tonnes of waste per annum collected for disposal:
This is the value that you will need for the next screening step.
Obtain the go-ahead and requisite authorisation from Council for the required expenditure.
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.
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.
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).
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.
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.
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.