TABLE OF CONTENTS

Section
1

Invitation to Apply for Eligibility

and to Submit Proposal

Section
2

Instructions to Private Sector

Participants

Section
3
Section
4

Eligibility Documents and Forms

Documents
Comprising
Proposal

to

be
the

Submitted
Technical

Section
5

Documents
Comprising
Proposal

to

be
the

Submitted
Financial

Section
6

Minimum
Standards
Specifications

Section
7
Section
8
Section
9

Draft Joint Venture Agreement

and

Draft NRW Services Agreement

Pre-Feasibility Study

TA

Republic of the Philippines

ZAMBOANGA CITY WATER DISTRICT

Pilar Street, Zamboanga City
Telephone Numbers: (062) 991-1556 / (062) 992-7831

INVITATION TO APPLY FOR ELIGIBILITY AND TO SUBMIT A PROPOSAL

FOR THE DEVELOPMENT, IMPLEMENTATION, FINANCING, OPERATION AND MANAGEMENT OF
A NON-REVENUE WATER REDUCTION AND NETWORK RESTRUCTURING PROGRAM UNDER A
JOINT VENTURE AGREEMENT WITH THE ZAMBOANGA CITY WATER DISTRICT
In compliance with Zamboanga City Water District (ZCWD) Board Resolution No. ___ dated
_________ 2014, ZCWD is in search of a private joint venture partner to pursue a NonRevenue Water Reduction and Network Restructuring Project (the Project). For this Project,
the Private Sector Participant (PSP) and ZCWD shall establish an incorporated joint venture
company (JVC). The PSP shall contribute seventy percent (70%) of the equity requirement
of the JVC in the form of cash and ZCWD shall contribute thirty percent (30%) of the equity
requirement of the JVC in the form of cash and materials, subject to the detailed terms and
conditions stated in the Selection/Tender Documents. In turn, the JVC will undertake the
Project and enter into a Non-Revenue Water Reduction Service Agreement with ZCWD. For
the information of prospective PSPs, ZCWD received and accepted an unsolicited proposal
for the Project which is being submitted to a competitive challenge process from other
interested PSPs.

Section 1

_________________________

Invitation to Apply
for Eligibility and
to Submit Proposal

ZCWD now calls for the submission of Letters of Intent (LOI) to apply for eligibility and to
submit a proposal for the Project pursuant to the 2008 Guidelines and Procedures for
Entering Into Joint Venture (JV) Agreements Between Government and Private Entities issued
by the National Economic Development Authority (JV Guidelines). PSPs must strictly
comply with the qualification requirements set forth in the JV Guidelines and the
Selection/Tender Documents.
For this purpose, the following schedule shall be observed, subject to modifications as may
be determined and announced by the JV-SC Chairman:
Activity
Period of Submission of Letter of Intent (LOI) and Signed
Confidentiality Agreement and Issuance of Eligibility
Documents
Pre-Qualification Conference
Period/Deadline for Submission of Eligibility Documents
Opening of Eligibility Documents
Issuance of Selection/Tender Documents to Eligible PSPs
Pre-Selection Conference
Deadline for Submission of Technical and Financial
Proposals
Opening of Technical Proposal
Opening of Financial Proposal

Date and Time

Interested PSPs may obtain further information from the ZCWD Joint Venture Selection
Committee (JV-SC) and inspect the Selection/Tender Documents at the address given
below from 8:00 a.m. to 5:00 p.m., Monday to Friday, from ______________ to __________ 2014.
The Eligibility Documents may be purchased by interested PSPs from _______ to ___________
2014 from the JV-SC Secretariat at the address below and upon payment of a non-refundable
fee of Five Hundred Thousand Pesos (Php500,000.00), either in the form of cash or
managers check. Only PSPs which timely submitted an LOI and signed Confidentiality
Agreement shall be allowed to purchase Eligibility Documents. The Selection/Tender
Documents (which includes technical and financial documents) may be purchased by PSPs
who have been declared as eligible by the JV-SC. Such PSPs may purchase the
Selection/Tender Documents from _______ to ___________ 2014 from the JV-SC Secretariat at
the address below and upon payment of a non-refundable fee of Five Hundred Thousand
Pesos (Php500,000.00), either in the form of cash or managers check.
For this purpose, prospective PSPs which purchased Selection/Tender Documents are

encouraged to attend the Pre-Selection Conference on the date stated in this Invitation to
Apply for Eligibiilty and to Submit a Proposal.
Completed Elegibility Documents, Technical and Financial Proposals shall be addressed to:
Alejo S. Rojas, Jr.
Chairman, Joint Venture Selection Committee
Non-Revenue Water Reduction and Network Restructuring Project
Zamboanga City Water District
Pilar Street, Zamboanga City
ZCWD reserves the right to reject, at any time prior to the signing of the Joint Venture
Agreement, any or all proposals without thereby incurring any liability to the affected PSP,
waive any minor defects therein and accept the offer it deems most advatageous to ZCWD.
All technical/financial proposals must be accompanied by a Proposal Security in the form of
cash or managers check equivalent to two percent (2%) of the Total Project Cost.

ALEJO S. ROJAS, JR.

Chairman
ZCWD Joint Venture Selection Committee

Section 2
_________________________

Instructions to
Private Sector Participants

ZAMBOANGA CITY WATER DISTRICT

NON-REVENUE WATER REDUCTION
AND NETWORK RESTRUCTURING PROJECT

INSTRUCTIONS TO PRIVATE SECTOR PARTICIPANTS

1 - PROJECT INFORMATION
1.1

General Description

Zamboanga City Water District (ZCWD) was established in _____ to provide water
and wastewater services to cover all areas within the geographical boundaries of
Zamboanga
City.
Currently,
the
service
area
of
ZCWD
covers
_________________________. As a fast developing water utility, ZCWD has always
acknowledged the need to reduce its non-revenue water (NRW) and expand its
network in order to improve service levels and increase service coverage.
High levels of NRW of ZCWD, currently estimated at ____, causes massive losses to
ZCWD. To address this pressing and urgent public need, there must be a reduction
of NRW and a restructuring of the ZCWD network for optimum management.
In order to allow for improved efficiency and quality of service, ZCWD must
undertake a Network Restructuring and Non-Revenue Water Reduction Program for
its water distribution system. To avoid the costs and public borrowing, and to
expedite these projects without having to wait until the necessary funds are raised,
ZCWD sees a Joint Venture Agreement (JVA) with a private entity as a viable
option.
In April 2011, Manila Water Company Inc. (MWCI) submitted an unsolicited
proposal to ZCWD for the development, implementation, financing, operation and
management of a NRW reduction and network restructuring program (hereinafter
referred to as the Project) that will cover the service area of ZCWD. The said
unsolicited proposal has been accepted and approved by the Joint Venture Selection
Committee (JV-SC) as well as the Board of Directors of ZCWD. Since ZCWD and
MWCI have successfully undergone and completed detailed negotiations on the
terms and conditions of the JV activity, the Project shall undergo the Competitive
Challenge Process in accordance with the Detailed Guidelines for Competitive
Challenge Procedure for Public-Private Joint Ventures which is attached as Annex C
of the Guidelines and Procedures for Entering Into Joint Venture (JV) Agreements
Between Government and Private Entities (the JV Guidelines) approved by the
National Economic Development Authority (NEDA) in April 2008. Under the JV
Guidelines, other Private Sector Participants (PSP) shall be invited to submit
comparative proposals.
The prospect PSP, through a Joint Venture Company (JVC) to be formed with
ZCWD, shall adopt a NRW reduction and network restructuring program to address
the need for recovering NRW to be converted eventually by ZCWD to additional
revenues as a result of expanded service levels to existing and potential customers
in the city. In particular, the program will include improvement of the network
through the restructuring program which will establish a number of District Metering
Areas (DMAs) for effective area prioritization and monitoring as well as selective
pipe replacement, replacement of water service connections, extensive leak
detection and repair, and investment in NRW equipment and tools, such as a
computerized monitoring system.
Capital investment is proposed to be recovered by the proposed joint venture
through: (1) Performance Fees per cubic meter of volume recovered, and (2) Fixed
Fees, which would be paid by ZCWD to the JVC.

The prospective PSP shall have the expertise in the operation and maintenance of a
network distribution system to assist ZCWD in providing water services in the most
efficient manner. The sustainability of the project benefits shall be ensured through
capacity-building and transfer of technical knowledge on NRW reduction best
practices and methodologies to ZCWD.
1.2

Project Objectives

The goals of the Project are: (1) reduction of NRW in ZCWDs service area, and (2)
improvement of its network through the restructuring program which aims to
establish a number of DMAs to allow better network management. Particularly, it is
aimed at the development, financing, design, engineering, construction, upgrade,
testing, commissioning of needed network infrastructure and the management,
operation and maintenance of such facilities.
The prospective PSP shall have the ultimate objective of achieving an improved
network and operational efficiency for ZCWD which would redound to better service
levels to its existing customers and expansion of water service to unserved
demands.
1.3

Contractual Arrangement of the Project

The Project is envisioned to be implemented through a Joint Venture between ZCWD

and a Private Sector Participant (PSP) using the JV Guidelines issued by the NEDA.
For this Project, a PSP and ZCWD shall establish an incorporated joint venture
company (JVC). The PSP shall contribute seventy percent (70%) of the equity
requirement of the JVC in the form of cash and ZCWD shall contribute thirty percent
(30%) of the equity requirement of the JVC in the form of cash and materials,
subject to the specific terms and conditions stated in the Selection/Tender
Documents and the Joint Venture Agreement. In turn, the JVC will undertake the
Project and enter into a Non-Revenue Water Reduction Service Agreement with
ZCWD. The revenues of the JVC will be allocated between ZCWD and the PSP in
proportion to their capital contributions to the JVC. The details of the JVC and the
NRW Reduction Services contemplated herein are stated in drafts of the Joint
Venture Agreement and the NRW Reduction Service Agreement which shall be
furnished to eligible PSPs during the Issuance of Selection/Tender Documents to
Eligible PSPs.
1.4

The Joint Venture Corporation

The Joint Venture Agreement to be executed by ZCWD and the winning PSP for the
purpose of forming the joint venture company (JVC) shall have the following basic
terms and conditions:
(a) Purpose / Contractual Intent The purpose of the Joint Venture Agreement
is to establish
a
JVC for the implementation of Non-Revenue Water
Reduction and Network Restructuring Programs for ZCWDs water distribution
system, including, but not limited to, the development, financing, design,
engineering, construction, upgrade, testing, commissioning of needed
network infrastructure and the management, operation and maintenance of
such facilities.
(b) Equity Sharing and Form of Contribution of the Parties The equity
sharing of the parties, and the form of their contributions, in the JVC shall be
as follows:
Parties
PSP
ZCWD

Equity
Percentage
70%
30%

Form of Contribution
Cash
Cash and Materials; Provided

that contribution in the form of

materials shall be limited to
10%
TOTAL

100%

(c) Board of Directors of the JVC The JVC shall be managed by a Board of
Directors consisting of five (5) directors. The PSP shall nominate three (3)
directors, including the Chairman of the Board, and ZCWD shall nominate two
(2) directors of the JVC. Each of the parties agrees to vote in favor of all the
directors so nominated.
(d) Roles and Responsibilities of the Parties ZCWD shall have the
following basic responsibilities:
1. Contribution of capital and materials; and
2. Assignment of the use of and access to ZCWD Network Infrastructure,
including the provision of a right-of-way and relevant assistance in various
government processes.
(e)Roles and Responsibilities of the PSP The PSP shall have the following
basic responsibilities:
1. Contribution of capital in accordance; and
2. Contribution of management and technical expertise with regard to the
NRW Reduction and Network Restructuring Program.
Other terms and conditions of the Joint Venture Agreement are stated in the JVA
draft which shall be furnished the eligible PSPs during the Issuance of
Selection/Tender Documents to Eligible PSPs.
1.5

Scope of the Project

ZCWD shall receive bids for the works and services identified below. The Project
shall cover the following programs:
(a) Network Restructuring Program: The establishment of thirty three (33)
District Metering Areas (DMAs) to allow better network management.
The abovementioned DMA formations are inclusive of appurtenant
installations (i.e. line meters, gate valves, step tests valves, pressure
regulating valves), data loggers, reinforcing lines, surveying, test pitting, and
cut and plug.
(b) Active NRW Reduction Program:
The following activities shall be
undertaken to recover a total NRW volume of 10.27 mcm by the fifth (5 th)
year and to maintain the 10.27 mcm up to the end of the sixth (6 th) year:
(1) Service Pipe (SP) Replacement
(2) Cut and plugs of Abandoned service pipes (SP) and water main line
(WML)
(3) Meter testing and replacement
(4)Active Leakage Control (Leak Detection and Repair of Mainline and Service
Pipes)
(5)Pressure Management
(6)Provision of geographic information system (GIS), hydraulic modelling
software, and other necessary software for updating and enhancement of
the existing model
(7)Provision of NRW tools and equipment
(8)Provision of Vehicles and other necessary equipment

(c) Technical Assistance: After achieving lowered NRW levels, technical

assistance shall be provided from the seventh (7 th) to the tenth (10th) years,
with priority on capacity-building and transfer of knowledge to ZCWD staff.
Management of the network will also be turned over to ZCWD. The following
activities must be undertaken:
(1)ZCWD staff training and development
(2) Technical assistance on network improvement programs
(3)Institutional improvement, resource enhancement and capacity
building
(4) Development and update of the networks hydraulic model, supply of
tools and equipment

1.6

Requirements

The Project shall conform to procedure and requirements laid down in the JV
Guidelines, other pertinent laws, government regulations, environmental standards
and other requirements that may be stipulated in the JVA or the Non-Revenue Water
Reduction Service Agreement.
2 JV-SC AND THE COMPETITIVE CHALLENGE PROCESS
2.1

Joint Venture Selection Committee (JV-SC)

The conduct of competitive challenge process shall be administered by ZCWD

through its JV-SC in accordance with the rules set forth in the JV Guidelines.
The JV-SC will be responsible for all aspects of the competitive challenge process of
the Project from pre-bidding up to contract award including the following:
publication of the invitation to apply for eligibility and issuance of supplemental
notices, the conduct of the competitive challenge process, evaluation of technical
and financial proposals, and recommendation for contract award to the ZCWD
Board.
2.2

Basis for the Competitive Challenge Process

The Competitive Challenge Process shall be based on the procedure laid down in
Annex C (Detailed Guidelines for Competitive Challenge Procedure for PublicPrivate Joint Ventures) of the JV Guidelines. The selection of the winning PSP shall be
in accordance with the methodology and criteria described in the Parameters and
Criteria for the Evaluation of the Technical and Financial Proposals. The selection
criteria were designed to determine the most advantageous proposal to ZCWD.
2.3

Determination of Eligibility of PSPs

The eligibility of PSPs shall be determined in accordance with the provisions and
requirements of Clause 3 (Eligibility) and Section 3 of the Selection/Tender
Documents.
2.4

Conflict of Interest

a) All PSPs found to have conflicting interests shall be disqualified to participate in

this competitive challenge process, without prejudice to the imposition of
appropriate administrative, civil, and criminal sanctions. A PSP may be
considered to have conflicting interests with another PSP in any of the events
described in paragraphs 1) through 3) and a general conflict of interest in any of
the circumstances set out in paragraphs 4) through 8) below:

1. have common controlling shareholders;

2. receive or have received any direct or indirect subsidy from any PSPs;
3. have the same legal representative for purposes of this Competitive
Challenge Process;
4. have a relationship with each other, directly or through common third
parties, that puts them in a position to have access to information about
or influence on the proposal of another PSP, or influence the decisions of
ZCWD regarding this Competitive Challenge Process; or
5. submit more than one Proposal in this Competitive Challenge Process.
However, this does not limit the participation of Subcontractors in more
than one Proposal; or
6. participate as a consultant of another PSP in the preparation of the design
or technical specifications of the goods and related services that are the
subject of the Competitive Challenge Process; or
7. a firm or an organization who lends or temporarily seconds its personnel
to firms or organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the Project, if
the personnel would be involved in any capacity on the same Project.
8. Other cases analogous to the foregoing whereby a potential conflict of
interest may arise.
b) A PSP (including all members of a consortium) shall not be presently associated,
or shall not have been associated in the past, directly or indirectly, with the
consultant or any other entity that has prepared the design, specifications, and
other documents for the Project; neither to those being proposed as the
representative of ZCWD for the Joint Venture Agreement.
c) Companies and its subsidiaries, affiliates, and employees who have pending
cases filed against ZCWD shall be disqualified from participating in whatsoever
capacity in the Competitive Challenge Process.
d) A PSP shall submit together with its proposal a sworn affidavit that it is not
related to any member of the ZCWD Board of Directors by consanguinity or
affinity up to the third civil degree or any of ZCWDs officers or employees
having direct access to information that may substantially affect the result of the
proposal, such as, but not limited to, the members of the JV-SC, the JV-SC
Secretariat, and the designers of the Project.
This Clause shall apply to the following persons:
1. If the PSP is an individual or a sole proprietorship, to the PSP himself;
2. If the PSP is a partnership, to all its partners, officers and members;
3. If the PSP is a corporation, to all its officers, directors, and controlling
stockholders; and
4. If the PSP is a joint venture, the provisions of items (a), (b), or (c) of this
Clause shall correspondingly apply to each of the members of the said joint
venture, as may be appropriate.
Relationship of the nature described above or failure to comply with this Clause will
result in the automatic disqualification of a PSP.
2.5

Corrupt, Fraudulent, and Coercive Practices

a) A PSP shall not engage in corrupt, fraudulent, or coercive practices. For purposes
of this clause, corrupt, fraudulent, and coercive practices shall be understood to
mean:
1. "corrupt practice" means behavior on the part of officials in the public or
private sectors by which they improperly and unlawfully enrich themselves,
others, or induce others to do so, by misusing the position in which they are
placed, and includes the offering, giving, receiving, or soliciting of anything of
value to influence the action of any such official in the Competitive Challenge

Process or in contract execution; entering, on behalf of ZCWD, into any

contract or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby; and similar
acts as provided in Republic Act No. 3019;
2. "fraudulent practice" means a misrepresentation of facts in order to influence
a procurement and/or the Competitive Challenge Process or the execution of
a contract to the detriment of ZCWD, and includes collusive practices among
PSP (prior to or after submission of proposals) designed to establish proposal
prices at artificial, non-competitive levels and to deprive ZCWD of the
benefits of free and open competition;
3. "collusive practice" means a scheme or arrangement between two or more
PSPs, with or without the knowledge of the ZCWD, designed to establish
proposal prices at artificial, non-competitive levels; and
4. "coercive practice" means harming or threatening to harm, directly or
indirectly, persons, or their property to influence their participation in a
procurement and/or Competitive Challenge Process, or affect the execution of
a contract.
If a PSP is found to have violated this clause, the JV-SC will declare such PSP
ineligible, either indefinitely or for a stated period of time, or cancel the contract
award if at any time it has determined that the PSP has engaged in corrupt or
fraudulent practices in competing or in executing the contract.
Further, ZCWD will seek to impose the maximum penalties for civil and criminal
liability available under the applicable law on individuals and organizations
deemed to be involved in corrupt, fraudulent, collusive and coercive practices.
The commission of corrupt, fraudulent, and coercive practices or failure to
comply with the provisions of this clause will result in the rejection of a PSPs
proposal.
2.6

One Proposal per PSP

Each PSP shall submit only one proposal for the Project, either individually or as a
partner in a consortium. A PSP who submits or participates in more than one
proposal for the Project will cause all the proposals with the PSP's participation to be
disqualified. This shall be without prejudice to any applicable criminal, civil and
administrative penalties that may be imposed upon the persons and entities
concerned.
2.7

Participation in the Competitive Challenge Process

(a)Responsibility of the PSP

The PSP shall be solely responsible for taking all the necessary steps to carefully
examine and be acquainted with the requirements, terms and conditions of the
Selection/Tender Documents with respect to the cost, duration, and execution,
operation and implementation of the Project. The JV-SC or ZCWD shall not assume
any responsibility regarding erroneous interpretations or conclusions by the PSP out
of data and information furnished or indicated in the Selection/Tender Documents.
(b)Cost of Participation
All PSPs shall bear all costs associated with their participation in the competitive
challenge process, in the preparation and submission of their proposals, including
any losses or damages resulting thereto. Moreover, the PSP shall bear the nonrefundable cost of the Eligibility Documents (in the amount of Php500,000.00) and
the Selection/Tender Documents (in the amount of Php500,000.00). The JV-SC shall

in no case be held responsible or liable for such costs regardless of the result of the
competitive challenge process.
(c) Change in Consortium/Joint-Venture Membership
If the membership of the consortium/joint-venture has changed, the new or
replacement member/s shall submit all documents, information and requirements
for consortium/joint venture members; Provided that no changes to the PSP which is
consortium/joint venture shall be entertained by the JV-SC after the deadline for the
submission of the proposals on _______________.

2.8

Supplemental Notices

If a qualified bidder is in doubt as to the meaning of any data, information or

requirements or any part of the Selection/Tender Documents, a written request may
be submitted by the PSP to the JV-SC for an interpretation of the same, allowing
sufficient time to reply before the submission of its bid. Any substantive
interpretation given shall be issued in the form of a Supplemental Notice and
furnished to all prospective PSPs. The JV-SC may also issue Supplemental Notices to
all prospective PSPs any time for purposes of clarifying any provisions of the
Selection Tender Documents provided that the same is issued within a reasonable
period to all prospective PSPs to consider the same in the preparation of their
proposals and bids. Receipt of all Supplemental Notices shall be duly acknowledged
by each prospective PSP prior to the submission of its proposal and bid and shall be
so indicated in the bid.
2.9

Language

All correspondences, documents, annexes, bid forms and technical and financial
data forms submitted for this competitive challenge process shall be in the English
language.
2.10 Treatment of Documents from Bidders
All documents and information submitted by the prospective PSPs and officially
accepted by the JV-SC shall be treated and considered strictly confidential.
3 ELIGIBILITY
3.1

Eligibility Requirements

Interested PSPs shall comply with the eligibility requirements enumerated in Section
3 and shall submit the Eligibility Documents to the JV-SC on the schedule specified
in the Invitation to Apply for Eligibility and to Submit a Proposal (IAESP).
3.2

Pre-Qualification Conference

A Pre-Qualification Conference shall be held in order to clarify matters pertinent to

the submission of Eligibility Requirements pursuant to this clause.
PSPs shall promptly seek clarifications on matters relevant to eligibility, which shall
be responded to by the JV-SC. As the need arises, supplemental bid bulletins and
addenda shall be issued which shall form part of the foregoing instructions.
Only those who have purchased Eligibility Documents upon submission of their
respective Letters of Intent may participate in the Pre-Qualification Conference.
3.3

Procedures in Submitting Eligibility Proposal

The Eligibility Proposals shall be submitted to the JV-SC in accordance with Section 3
of the Tender/Selection Documents, within thirty (30) days after the scheduled PreQualification Conference. The proposals shall be opened at ________ p.m. of the last
date of submission of Eligibility Documents.
Any Eligibility Proposal submitted after the deadline for submission and receipt by
ZCWD shall be declared Late and shall not be accepted by ZCWD.
Modifications and withdrawal of Eligibility Proposals shall not be allowed after the
deadline for the submission of the same. Modifications received after the applicable
deadline shall not be considered and shall be returned to the PSP unopened.
3.4

Opening and Preliminary Examination of Eligibility Documents

At the date and time of the said submission and opening, the Eligibility Documents
shall be opened first in the presence of the prospective PSPs' representatives who
choose to attend at the specified time, date and place. The prospective PSPs
representatives who are present shall sign a register evidencing their attendance.
During the opening of the Eligibility Documents, the following shall be read out and
recorded:
a) the name of the prospective PSP;
b) the presence or absence of each document comprising the Eligibility Documents,
vis--vis a checklist of the required eligibility documents as enumerated in
Section 3 of the Tender Documents.
c) If a prospective PSP submits the specific eligibility document required, such PSP
shall be rated "passed" for that particular requirement. In this regard, failure to
submit a requirement, or an incomplete or patently insufficient submission, shall
be considered "failed" for the particular requirement concerned. If a prospective
PSP is rated "failed" in any of the eligibility requirements, he shall be considered
ineligible to further participate in the Competitive Challenge Process, and the JVSC shall mark the set of Eligibility Documents of the prospective PSP concerned
as "Ineligible."
3.5

Eligible and Ineligible.

ZCWD, through its JV-SC, shall within a period of fifteen (15) calendar days after the
deadline set for the submission of the aforesaid eligibility documents, complete the
evaluation of the eligibility documents of the prospective PSPs, and determine which
among them are eligible and ineligible. Accordingly, the JV-SC shall duly inform
the eligible PSPs within seven (7) calendar days after approval thereof. Ineligible
PSPs shall be similarly given notice of such ineligibility, stating therein the grounds
for ineligibility within the same period.
Those ineligible may appeal their ineligibility to the ZCWD Board of Directors, within
seven (7) calendar days from receipt of the notice of ineligibility. The competitive
challenge process will be suspended for a maximum period of thirty (30) calendar
days while the appeal is being evaluated. The ZCWD Board of Directors shall act on
the appeal within the thirty (30) calendar day period of suspension of the
competitive challenge process. The decision of the ZCWD Board of Directors on the
appeal shall be final and immediately executory. If the appeal is not resolved within
said period, the appeal is deemed denied, and the competitive challenge process
will proceed.
4 FORMULATION OF PROPOSALS
4.1

Site Visit

All PSPs and/or any of their authorized representatives are encouraged to visit and
inspect the project site and obtain such information as may be necessary for the
preparation of their proposals.
4.2

Pre-Selection Conference

Prospective PSPs may attend the Pre-Selection Conference to clarify issues and raise
questions pertinent to the Selection/Tender Documents or the competitive challenge
process. The pre-selection conference is scheduled on ______ at ______ to be held at
the _______. Any change in schedule shall be given not less than five (5) days in
advance by the JV-SC. Any PSP wishing to raise any issue/s or question/s are
required to submit their questions in writing (i.e., through mail, hand-delivery,
facsimile or e-mail) which should be submitted to the JV-SC Secretariat at least three
(3) working days before the scheduled date of the Pre-Selection Conference.
A summary of the proceedings in the Pre-Selection Conference shall also be issued
to all prospective PSPs by the JV-SC. The JV-SC will issue corresponding bid bulletins
for all modification/clarification made on the Selection/Tender Documents and issues
resolved during the Pre-Selection Conference which will be distributed to all PSPs.
4.3

Signing of Proposals

Each page of the original Technical and Financial Proposals, including the
accomplished forms, must be signed by the PSP, through its authorized
representative/s.
The aforesaid proposals shall be without alterations, erasures or insertions, except
as may be necessary to correct errors made by the PSP, in which case, the
authorized representative/s of the PSP shall initial such corrections.
4.4

Submission of Proposals

ZCWD will only accept Technical and Financial Proposals from PSPs who have passed
the eligibility screening and have purchased the Selection/Tender Documents from
the office indicated in the Invitation to Apply for Eligibility and to Submit a Proposal
(IAESP).
Only the authorized representative of the PSP is allowed to submit the Technical and
Financial Proposals and other documents of the PSP to the JV-SC Secretariat. A duly
notarized authority of the said representative executed by the board of directors or
duly authorized officer of the PSP must accompany the bid documents and attached
to its cover letter.
4.5

Withdrawal and/or Modification of Bids

Withdrawal and/or modification of proposals may be allowed upon written notice by

the PSP concerned to the JV-SC prior to the time and date set for the opening of the
First Envelope (Technical Proposal) as specified in Clause 10.
No proposals shall be modified or withdrawn after such time. Proposal modifications
received after said period shall be considered late and will be returned unopened.
Withdrawal of proposals after the proposal opening date shall cause the forfeiture of
the PSPs Proposal Security.
4.6

Proposal Security/ Bid Bond

(a)Purpose
The Proposal Security or Bid Bond guarantees that the proposed contract awardee
shall, within seven (7) calendar days from receipt of Notice of Award (NOA), enter

into a contract with ZCWD and provide the required performance security within the
said prescribed period.
(b)Form and Validity
The Proposal Security which shall be included as part of the technical proposal shall
be in the form of cash, certified check, managers check, letter of credit, or a bank
draft/guarantee issued by a reputable bank, or a surety bond callable on demand
issued by the Government Service Insurance System (GSIS) or an entity duly
registered and recognized by the Office of the Insurance Commissioner and
acceptable to ZCWD or any combination thereof.
In case the Proposal Security is issued by a foreign bank, the said security has to be
confirmed and validated by its local branch in the Philippines or by a bank that is
duly registered and authorized by the Bangko Sentral ng Pilipinas (BSP).
The Proposal Security shall be valid for a period of one hundred eighty (180)
calendar days following the date of the opening of the proposals on _____________.

(c) Amount
All PSPs must furnish, as part of its technical proposal, a Proposal Security
amounting to ________________ Pesos (Php________________) equivalent to two percent
(2.0%) of the cost of the JV activity.
(d)Return of the Proposal Security
An unsuccessful PSPs Proposal Security shall be returned and released as soon as
the JVA and the NRW Reduction Service Agreement of the successful/winning PSP
has been executed by ZCWD and the winning PSP. The winning PSPs Proposal
Security shall be returned after the aforesaid agreements have been signed and the
winning PSP has furnished the required Performance Security.
(e)When to File
The Proposal Security shall be contained in a separate sealed envelope with
marking PROPOSAL SECURITY OF (NAME OF PSP). The envelope for Proposal
Security must be contained in the envelope for the Technical Proposal and must be
submitted on or before the deadline for the submission of technical proposals on
_________. Failure to post the Proposal Security is a ground for automatic rejection of
the proposal or bid.
(f) Forfeiture or Confiscation of the Proposal Security
The Proposal Security may be forfeited for any of the following reasons:
(1) If a PSP withdraws its Proposal/Bid after the date of the opening of the
proposals;
(2) If any member of the joint venture or consortium withdraws prior to the
actual award and/or implementation of the Project and such withdrawal
could be a ground for the cancellation of the contract and forfeiture of the
PSPs Proposal Security, unless it is shown to the satisfaction of ZCWD that
the PSP is still capable of successfully carrying out the Project or has
provided a suitable and acceptable substitute member with equal or
better qualifications; and
(3) If the successful PSP fails to sign the JVA and NRW Reduction Service
Agreement within seven (7) days upon notification by ZCWD or if the

winning PSP fails to comply with the conditions precedent for the
execution of the aforesaid agreements within fifteen (15) calendar days
from receipt of the NOA, or as specified or extended by the ZCWD Board.
5 - RECEIPT AND OPENING OF BID
5.1

Submission

PSPs are required to submit their proposals at the following address:

Joint-Venture Selection Committee
Zamboanga City Water District
Pilar Street, Zamboanga City, Zamboanga del Sur
5.2

Time and Date of Submission

All proposals of PSPs shall be submitted to the JV-SC on or before 5 P.M. (Philippine
Standard Time) of ____________. The JV-SC Secretariat or any of its designated
representatives shall indicate the date and time of receipt of the aforesaid proposals
in an acknowledgment form. Opening of the envelopes for Technical Proposal shall
follow thereafter.
5.3

Submission of Late Proposals

Proposals submitted after the deadline for submission stated above shall be
considered late and shall be returned unopened to the concerned PSP, who shall be
deemed disqualified from further participation in the competitive challenge process.
Proposals with an incomplete number of duplicate sets required shall likewise be
returned unopened to the concerned PSP. The time and date recorded by the JV-SC
in the acknowledgment form shall be utilized in determining the actual and official
time of submission of the proposals.
5.4

Attendance of PSP Representatives

Each PSP shall be allowed a maximum of two (2) representatives who may attend
the opening of the technical and financial proposals and who shall sign a register
signifying their attendance in the said proceedings.
5.5

Opening of the Envelopes Containing the Technical Proposals

At the date and time of the opening of the envelopes containing the technical
proposals, the JV-SC shall open only the technical proposal and ascertain: (a)
whether the same is complete in terms of the data and information required under
the Selection/Tender Documents; and (b) whether the same is accompanied by the
Proposal Security in the prescribed form, amount, and period of validity.
5.6

Automatic Rejection of Proposals

Technical Proposals determined at the proposal opening date to have incomplete

documents, information or data vis--vis the technical requirements or those not
accompanied by the required Proposal Security in the form, amount and period of
validity prescribed shall be automatically rejected and their financial proposals
returned unopened.
Those who failed the evaluation of the technical proposal shall not be considered
further in the competitive challenge process and the JV-SC shall return their financial
proposals unopened together with the reasons for their disqualification from the
said competitive challenge process.
5.7

Opening of the Envelopes Containing the Financial Proposals

All the Financial Proposals of PSPs whose Technical Proposal has been determined to
be compliant shall be opened at the same time, date and place to be communicated
by the JV-SC to the aforesaid compliant PSPs and the original proponent. The
Financial Proposals of compliant PSPs shall be evaluated when they have submitted
the required documents and information stated in the Selection/Tender Documents
and in accordance with the prescribed form.
5.8

Confidentiality of Proceedings

Information relating to the examination, clarification, evaluation, and comparison of

proposals/bids, and recommendations for the award of a contract, shall not be
disclosed to the PSPs or any other persons not officially concerned with such
process until the award to the successful/winning PSP has been announced. Any
effort by a PSP to influence the processing or evaluation of the proposals or the
decision to award the Project shall result in the rejection of the PSPs proposal and
its disqualification.

6 PROPOSAL VALIDITY
6.1

Validity of Proposals

Proposals and Proposal Securities shall be valid for a period of one hundred eighty
(180) calendar days from the date of opening of proposals. The award of the Project
to the winning PSP shall be made within the period of the validity of the proposals.
The proposals and documents of the winning PSP shall remain with and be
considered the property of ZCWD. All other proposals and documents, including the
proposal securities, shall be returned to the losing PSP within five (5) calendar days
from the execution of the JVA and NRW Reduction Service Agreement for the Project.
6.2

Extension of Validity of Proposals

When an extension of validity of proposals is considered necessary, those who

submitted proposals shall be requested in writing to extend the validity of their
proposals before the expiration date. However, PSPs shall not be allowed to make
any modifications to or revisions on their proposal. PSPs shall have the right to
refuse to grant such an extension without forfeiting their Proposal Security, but
those who are willing to extend the validity of their proposal shall be required to
provide a corresponding extension of the validity of their proposal security.
7 - EVALUATION OF PROPOSALS
7.1

No Comparative Proposals

If no comparative proposal is received by ZCWD, the JV activity shall be immediately

awarded to the original proponent. In case comparative proposals are been
submitted to ZCWD, the following procedure shall be followed.
7.2

Evaluation of Technical Proposals (First Stage)

(a) The JV-SC shall assess the technical, operational, environmental and financing
viability of the proposal vis--vis the standards and parameters fixed by
ZCWD as stated in the Selection/Tender Documents. The JV-SC shall evaluate
each technical proposal according to the evaluation criteria stated in Section
4 of the Selection/Tender Documents. The compliance of such technical
proposals with each of the said evaluation criteria shall be determined and
the JV-SC shall indicate whether the PSPs technical proposal has passed or
failed in each of the said criteria.

(b) The JV-SC shall complete the evaluation of the Technical Proposals within
fifteen (15) calendar days from the date the said proposals are opened. Those
PSPs who failed the First Stage (Evaluation of Technical Proposals) shall no
longer be considered for the Second Stage (Evaluation of Financial Proposals)
and the JV-SC shall immediately return their proposals (with the Financial
Proposal to remain unopened) together with the reason for their failure in the
First Stage.
7.3

Evaluation of Financial Proposals (Second Stage)

(a) Only the Financial Proposals of those PSPs who passed the evaluation during
the First Stage shall participate in the Second Stage of the proposal
evaluation process.
(b) The financial evaluation shall involve the assessment and comparison of the
financial proposals of the PSPs, based on the parameters and criteria for
evaluation of the financial proposals provided by the JV-SC as stated in
Section 5 of the Selection/Tender Documents.
(c) If ZCWD, upon recommendation by the JV-SC determines that an offer made
by a challenger/comparative PSP is superior to, or more advantageous to
ZCWD than, the financial proposal of the original proponent, the original
proponent shall be given the right to match such superior or more
advantageous offer within thirty (30) calendar days from receipt of
notification from ZCWD of the results of the competitive challenge process.
Should not matching offer be received within the stated period, the Project
shall be awarded to the challenger/comparative PSP submitting the most
advantageous proposal. If a matching offer (i.e. an offer equivalent to, or
more superior than, the most advantageous proposal) is received from the
original proponent within the prescribed period, the Project shall be awarded
to the original proponent.
(d) If, however, the challengers/comparative PSPs fail to make a superior
financial proposal compared to that of the original proponent, the Project
shall be awarded to the original proponent.
(e) In case of a tie between the original proponent and the
challenger(s)/comparative PSPs, the Project shall be awarded to the original
PSP. If the tie, however, occurs between PSPs other than the original
proponent, the tie should be broken through drawing of lots of similar
methods that are non-discretionary and non-discriminatory such that it is
based on luck or chance.
(f) A Filipino PSP who submits an equally advantageous proposal with exactly the
same price and technical specifications that are equally advantageous as that
of a foreign PSP shall be given preference.
(g) The Second Stage (Financial Evaluation) shall be completed by the JV-SC
within fifteen (15) calendar days from the date the First Stage is completed.
7.4

Right to Reject All Bids

The JV-SC reserves the right to reject any or all bids, waive any minor defects
therein and accept the offer it deems most advantageous to ZCWD.
8 - AWARD
8.1

Recommendation to Award

Within seven (7) calendar days from the date the financial evaluation shall have
been completed, the JV-SC shall submit to the ZCWD Board a recommendation of

award. The JV-SC will prepare and submit a detailed evaluation assessment report
on its decision regarding the evaluation of the proposals and explain in clear terms
the basis of its recommendations.
8.2

Decision to Award

Within seven (7) calendar days from the submission by JV-SC of the
recommendation to award, the ZCWD Board shall decide on the award. The
approval shall be manifested by signing and issuing the Notice of Award to the
winning PSP within seven (7) calendar days from approval thereof. All unsuccessful
PSPs shall be informed in writing of the decision of the ZCWD to award the Project to
the winning PSP. Such decision shall be made available to the public when
requested.
8.3

Contents of the Notice of Award

The Notice of Award (NOA), which is issued by the ZCWD Board, shall indicate,
among others, the following:
(a) Performance Security which shall be in the form of cash, certified check,
managers check, letter of credit, or a bank draft/guarantee issued by a
reputable bank, or a surety bond callable on demand issued by the
Government Service Insurance System (GSIS) or an entity duly registered and
recognized by the Office of the Insurance Commissioner and acceptable to
ZCWD or any combination thereof, in accordance with the following
schedules:
(1) Cash, managers check, irrevocable letter of credit, or a bank draft
minimum of two percent (2%) of the PSPs contribution to the JV activity /
Project.
(2) Bank guarantee - minimum of five percent (5%) of the PSPs contribution
to the JV activity / Project.
(3) Surety Bond minimum of ten percent (10%) of the PSPs contribution to
the JV activity / Project.
The Performance Security shall be valid within the period of one (1) year after
the end of the Project. Upon certification by the ZCWD Board that no claims
were filed against the PSP, the Performance Security shall be released. Also,
as may be agreed upon in the JV Agreement or the NRW Reduction Service
Agreement, portions of the Performance Security may be released upon
compliance with corresponding milestones.
(b) Proof of commitment of the required equity contribution to the JVC, as
specified by the ZCWD Board:
(1) In case the PSP is a corporation - e.g., treasurers affidavit attesting to
actual
paid-up
capital,
subscription
agreement(s)
between
a
shareholder(s) of the PSP and the PSP itself covering said equity
contribution, or shareholders agreement between and amongst two (2) or
more shareholders of the PSP undertaking to contribute/subscribe to the
required equity contribution; or
(2) In the case of a joint venture/consortium - an undertaking of the members
thereof to infuse the required equity contribution to the joint
venture/consortium.
(c) Proof of firm commitments from reputable financial institution to provide
sufficient credit lines to cover the total estimated cost of the Project.
(d) In the case of a joint venture/consortium, the agreement indicating that the
members are jointly and severally liable for the obligations of the PSP under
the JVA and/or the NRW Reduction Service Agreement.

(e) Such other conditions imposed by the ZCWD Board.

Failure to submit the requirements within the prescribed fifteen (15)-calendar day
period will result in confiscation of the Proposal Security. Within seven (7) calendar
days upon receipt of the foregoing requirements for award, the ZCWD Board shall
determine the sufficiency of the same, and notify the winning PSP of its compliance
with all the conditions stated in the said notice.
8.4

Withdrawal of a Member

The withdrawal of any member of the joint venture or consortium prior to the actual
award and/or implementation of the Project could be a ground for the cancellation of
the contract and forfeiture of the proponents Proposal Security. The ZCWD Board,
upon recommendation of the JV-SC, may, however, proceed with the award of the
contract or the implementation of the Project if, upon its determination, it finds that
the other members of the joint venture or consortium are still capable of
successfully carrying out the Project or that they have provided a suitable and
acceptable substitute member with equal or better qualifications.
8.5

Reimbursement to Original Proponent

Producing the JV/Project Proposal

of

Cost

Incurred

from

In the event the Project is awarded to a challenger / comparative PSP and not the
original proponent, such challenger / comparative PSP shall be solely responsible for
the reimbursement to the original proponent of costs incurred by the original
proponent for producing its JV/Project Proposal, which shall include, but shall not be
limited to, __________________________. Within fifteen (15) days from the issuance of
the NOA, the original proponent shall provide the winning PSP with notice of the
amount to be reimbursed and the winning PSP shall, within thirty (30) days from
such notice, reimburse the said costs to the original proponent in the form of a
managers check.
9 - EXECUTION OF CONTRACT
9.1 Period of Execution; Submission of Copies to Government Agencies
Within thirty (30) calendar days from receipt of the NOA, the winning PSP shall
submit all requirements mentioned in Clause 8.3.
In turn, within seven (7) calendar days from receipt by the winning PSP of the notice
from ZCWD that all conditions stated in the NOA have been complied with, the
authorized signatories of the winning PSP and ZCWD shall execute and sign the JVA
for the Project. Within ________ (_______) days from the execution of the JVA, the
winning PSP and ZCWD shall incorporate the JVC, register the JVC with the Securities
and Exchange Commission and any other relevant government agency or
commission, and cause the JVC to execute a NRW Reduction Service Agreement
with ZCWD.
An original signed copy of the JVA and the NRW Reduction Service Agreement shall
be submitted to:
(a) The Office of the President;
(b) National Economic Development Authority (NEDA);
(c) Office of the Government Corporate Counsel (OGCC);
(d) Government Procurement Policy Board (GPPB);
(e) Local Water Utilities Administration (LWUA); and
(f) Department of Finance (DOF).
9.2

Responsibilities of the Winning PSP

The winning PSP shall design and carry out the Works and Services (including
associated purchases and/or subcontracting) necessary to comply with the
requirements prescribed minimum design and performance standards and
specifications with due care and diligence in accordance with the Contract.
The winning PSP, through the JVC, shall be responsible for obtaining the required
clearances, building permits and other approvals, if any, from the other
governmental agencies as may be required under existing laws, rules and
regulations.
9.3

Failure to Enter into Contract with ZCWD

In the event of refusal, inability or failure of the winning PSP to enter into contract
with ZCWD within the time provided therefore, the JV-SC shall forfeit the Proposal
Security of the said PSP. In such an event, the ZCWD Board, upon recommendation
of the JV-SC, shall consider the PSP with the next ranked complying proposal as the
winning PSP. If the said PSP shall likewise refuse or fail to enter into contract with
the ZCWD, the Proposal Security of the said PSP shall be forfeited and the ZCWD
Board shall consider the PSP with the next ranked complying proposal as the
winning PSP, and so on until a contract shall have been entered into. In the event
that ZCWD is unable to execute the contract with any of the complying and
qualified PSPs due to the refusal of the latter, the Project shall be automatically
awarded to the original PSP.
Each unsuccessful PSP shall also be notified of the award through official
notices/communications. NOA shall be made available to the public when
requested.
10 - BID SCHEDULE
The schedule of events in the competitive challenge process for the Project is
provided in the table below. Prequalified PSPs shall be notified of any change in the
schedule through Supplemental Bulletins.

MILESTONE
Pre-Qualification Conference
Submission of Eligibility Proposal/Documents
Opening and Evaluation of Eligibility
Proposals/Documents
Pre-Selection Conference
Submission of Technical and Financial Bids
and Opening of Technical Bids
Technical Evaluation and Benchmarking
Notification of Technical Evaluation Results
Opening of Financial Envelopes
Financial Evaluation
Review of Evaluation Results by JV-SC
Issuance of Notice of Award
Contract Signing
Notice to Proceed
Implementation

DURATION

11 INQUIRIES
All inquiries concerning these Selection/Tender Documents should be submitted in
writing to the Chairman of the JV-SC and received by ZCWD on or before ______.
Answers will be furnished to all PSPs in the form of supplemental bulletin within ten
(10) working days from receipt of the inquiry. The JV-SC shall not entertain inquiries
that are not in writing and not addressed to the JV-SC.

Section 3
_________________________

Eligibility Requirements and Forms

ELIGIBILITY
1 - Who May Participate
This invitation to bid is open to Private Sector Participants (PSP), eligible to take part
in the bidding for the Project under the provisions of the JV Guidelines, meeting the
following requirements:
(1) Duly licensed Filipino citizens/sole proprietorships;
(2) Partnerships duly organized under the laws of the Philippines and of which at
least sixty percent (60%) of the interest belongs to citizens of the Philippines;
(3) Corporations duly organized under the laws of the Philippines, and of which at
least sixty percent (60%) of the outstanding capital stock belongs to citizens
of the Philippines; and
(4) Joint Venture, i.e., a group of two (2) or more persons/entities that intend to
be jointly and severally responsible and/or liable for the contract: Provided
that Filipino ownership or interest of the Joint Venture shall be at least sixty
percent (60%).
2 - Eligibility Requirements
The eligibility requirements enumerated below shall be complied with and the
eligibility documents shall be submitted to the JV-SC on the schedule specified in
the Invitation to Apply for Eligibility and to Submit a Proposal (IAESP). The PSP
shall comply with the following Eligibility Requirements:
(1)Technical Requirements
General Work Experience
a.

b.
c.
d.
e.

The PSP must have operated and managed a single distribution system
with a total number of water service connections (WSCs) of not less
than the current number of WSCs of ZCWD.
The PSP must have experience in the design and establishment of not
less than the proposed number of DMAs for ZCWD in a single project.
The PSP must have experience in the maintenance and management
of NRW of not less than the proposed number of DMAs for ZCWD.
The PSP must submit a list of accredited and reputable suppliers of
relevant materials to be used in the Project.
The PSP must have experience in implementing projects through joint
ventures with a government entity

Specific Work Experience

a. The PSP must have current or completed NRW reduction projects,
locally or internationally, similar to the Project. The PSP shall submit a
statement of all its ongoing and completed government and private
contracts similar or related to the JV activity subject of the Competitive
Challenge Process, including any contracts awarded but not yet
started.
b. The PSP must have substantially or fully completed an NRW Reduction
Project with a single cost of not less than fifty percent (50%) of the cost
of the Project, adjusted to current prices using the Consumer Price
Index published by the National Statistics Office. The estimated cost of
the Project is Three Hundred Million Pesos (Php300,000,000.00).

c. The PSP must have substantially or fully completed an NRW Reduction

Project in a network system of not less than the current number of
water service connections of ZCWD (i.e. __________ connections) and
minimum reduced volume of 10.27 million cubic meters.
Manpower of the Prospective JV Partner
a. List of permanent employees that will be deployed to the Project.
b. The list shall include number of years of service of each employee with
the PSP.
c. The Project Manager/NRW Manager to be assigned must have a
minimum relevant experience of ten (10) years, and such experience
must be specific to NRW reduction work.
d. Other technical staff stated below shall have a minimum relevant
experience of five (5) years, and such experience must be specific to
NRW reduction work:
1.
2.
3.
4.
5.

Design and Engineer

Construction Manager
NRW Reduction Manager
Hydraulic Modeller
DMA and Pressure Management Specialist

(2)Financial Requirements / Capability

a. The PSP must have a positive annual net income, for the past three (3)
years, with a net income margin of no less than thirty percent (30%).
b. The PSP should have had an Annual Gross Revenue of at least Three
Hundred Million Pesos (Php300,000,000.00) or its equivalent for the
most recent two (2) full financial years, and if the PSP is a Consortium,
the Combined Weighted Annual Gross Revenue of its member Partner
and its Joint Venture should have been at least Five Hundred Million
Philippine Pesos (Php500,000,000) for the most recent two (2) full
financial years
c. The PSP should have had a Net Worth of at least Four Hundred Million
Pesos (Php400,000,000) or equivalent at the end of the most recent
two (2) full financial years, and if the PSP is a Consortium, the
Combined Weighted Networth of its members should have been at
least Five Hundred Million Pesos (Php500,000,000) for the most recent
two (2) full financial years
d. The PSP must submit Net Financial Contracting Capacity (NFCC) of at
least equal to the total project cost. In lieu of NFCC, the PSP may
submit a Credit Line Certificate (CLC) of at least ten percent (10%) of
the Total Project Cost. CLC must be issued by universal commercial
bank or if issued by foreign Universal Commercial bank it shall be
confirmed or authenticated by Universal or Commercial Bank. CLC
must be machine validated
(3)Legal Requirements
a. In case of a consortium, all the prospective partners forming part of the
consortium shall also submit the required described technical, financial

and legal eligibility requirements to determine the overall capability of

the consortium for the JV undertaking.
b. In case of a consortium, all the prospective partners shall also submit
and comply with the following requirements:
1. The proposal, and in case of a successful proposal, the JVA and the
NRW Reduction Service Agreement, shall be signed so as to be
legally binding on all partners;
2. All partners of the Joint Venture shall be jointly and severally liable
for the execution of the JVA and the NRW Reduction Service
Agreement in accordance with the contract terms, and a relevant
statement to this effect shall be included in the authorization
mentioned in item (b) above as well as in the Contract Agreement
(in case of a successful Proposal); and
3. A copy of the notarized Joint Venture Agreement to be entered into
by the Joint Venture partners shall be submitted with the Proposal.
c. The PSP must have documents showing corporate authority to submit
and sign the documents required in the selection/tender documents.
d. The PSP, or in the case of a consortium all members thereof, must not
have a material case that may affect their capability to implement the
Project, or any on-going legal dispute with ZCWD before any court,
prosecutor, tribunal or authority.
3 Eligibility Documents
3.1.

Confidentiality Statement

The applicant PSP shall accomplish the Confidential Statement for Eligibility by
the PSP (ZCWD-JV-SC-A.1) and support with the following documents;
3.2

Legal Documents
(a.1)

(a.2)
(a.3)
(a.4)

(a.5)

Certified true copy of Department of Trade and Industry (DTI)

business name registration (ZCWD-JV-SC-A.1.1); or Securities and
Exchange Commission (SEC) registration certificate, whichever may
be appropriate under existing laws of the Philippines.
Certified True Copy of a Valid and Current Mayors or Business
Permit / Municipal License (ZCWD-JV-SC-A.2.1);
Certified
True
Copy
of
the
Taxpayers
Identification
Number/Certificate of BIR Registration (ZCWD-JV-SC-A.3.1),and
Latest Tax Clearance (ZCWD-JV-SC-A.3.1a);
Sworn Statement of the prospective PSP that it is not blacklisted
or barred from Tendering by the Government or any of its agencies,
offices, corporations or LGUs, including non-inclusion in the
Consolidated Blacklisting Report issued by the GPPB. (ZCWD-JVSC-A.4.1);
Duly notarized Special Power of Attorney (ZCWD-JV-SC-A.5.1),
Partner's Resolution (ZCWD-JV-SC-A.5.2) and/or Secretary's
Certificate (ZCWD-JV-SC-A.5.3) as the case may be, reflecting the
following as applicable:
(a.5.1) Authorizing another person for the sole proprietorship or
authorizing their respective partnership/corporation to enter
into
or
form
a
Consortium
with
another
sole
proprietorship(s) / partnership(s)/ corporation(s);

(a.6)

(a.7)

3.3

3.4

(a.5.2) Designating the lead member of the Consortium;

(a.5.3) Designating the authorized representative of the Consortium
for the purpose of the competitive challenge process
(a.5.4) If represented by an agent, authorizing the agent to act for
and on behalf of or to represent the Consortium in the
competitive challenge process of the JV partner for the
Project.
Affidavit of disclosure of no pending court cases (ZCWD-JV-SCA.6.1), and supported by a Regional Trial Court Clearance, (ZCWDJV-SC-A.6.1a), and Municipal Trial Court Clearance, (ZCWD-JV-SCA.6.1b) issued by the courts of law where the principal address of
the main / head office of PSP is located.
Certification under oath that the PSP, if a locator or an entity doing
business with the ZCWD is not in arrears or has not defaulted in any
of its commitments (financial, investment, and other contractual
obligations) to ZCWD regarding any past or current project being
undertaken with ZCWD (ZCWD-JV-SC-A.7.1);

Technical Documents
(a.8)

Statement of all ongoing and completed government and private

contracts similar or related to the JV activity subject of the selection
process, including contracts awarded but not yet started, if any for
the last ten (10) years (ZCWD-JV-SC-A.8.1) and for similar projects
(ZCWD-JV-SC-A.8.1.a). Completed projects shall include a single
largest completed contract (SLCC) which has a contract price
equivalent to at least fifty percent (50%) of the total cost of the
proposed project;

(a.9)

Supporting documents proving above listed projects, such as but not

limited to Memorandum of Agreements, Management Contracts,
Concession Agreement or Joint Venture Agreement and other similar
documents. The SLCC shall be supported by a Certificate of
Completion and Final Acceptance of the project issued by the
proponents serviced client, customer, or entity;

(a.10)

Statement of availability indicating numbers of the key personnel,

such as Civil Engineers, Sanitary Engineers (Water supply and
sewerage),
Electro-Mechanical
Engineer,
Chemist,
Accountants/Auditor, Human Resource Development personnel,
among others. (ZCWD-JV-SC-A.9.1);

(a.11)

A notarized certification that all the materials and equipment to be

utilized for the JV activity must be brand new, and supplied by a
reputable manufacturer with corresponding warranties and aftersales services; and

Financial Documents
(a.12)

Certified True Copies of the Audited Financial Statements (Balance

Sheet, Income Statement, and Auditor's Report, with notes to
financial statements) for the last three (3) fiscal/calendar years
(2011, 2012 and 2013) showing, among others, the Proponent's
Total and Current Assets and Liabilities. Said audited financial
statements must be stamped received by the Bureau of Internal
Revenue (BIR) or its duly accredited and authorized institution.

(a.13)

Certified true copy of the latest tax returns, which must be stamped
"received" by the Bureau of Internal Revenue (BIR) or its duly
accredited and authorized institutions, or its equivalent in case of a
foreign Joint Venture partner.

(b) Class B Documents

(b.1)

For Joint Venture PSPs, a valid and duly notarized Joint Venture
Agreement (JVA) (ZCWD-JV-SC B.1), stipulating, among others,
the following:
(b.1.1) The juridical personality, role and extent of participation of
each party in the JVA,
(b.1.2) That all partners of the Joint Venture shall be jointly and
severally liable for the execution of the contract in
accordance with the contract terms; and
(b.1.3) The lead partner shall be authorized to incur liabilities,
receive payments and receive instructions for and on behalf
of all partners of the Joint Venture.

(b.2)

A Secretarys Certificate (ZCWDJV-SC B.2.1) stipulating that the

PSP:
(b.2.1) has accepted the qualification criteria established by the JVSC of ZCWD, and
(b.2.2) waives any right it may have to seek and obtain a writ of
injunction or prohibition or restraining order against the
ZCWD or its JV-SC to prevent or restrain the qualification
proceedings related thereto, the award of the contract to a
successful PSP, and the carrying out of the awarded contract.
Such waiver shall, however be, without prejudice to the right
of a disqualified or losing PSP to question the lawfulness of
its disqualification or the rejection of its proposal by
appropriate administrative or judicial processes not involving
the issuance of a writ of injunction or prohibition or
restraining order,

(b.3)

Notarized Certification that each of the documents submitted in

satisfaction of the requirements is an authentic and original copy, or
a true and faithful reproduction of the original, complete, and that
all statements and information provided therein are true and correct
(ZCWD-JV-SC-B.3.1),

(b.4)

Notarized Authorization for the JV-SC or its duly authorized

representative/s to verify any or all of the documents submitted for
eligibility as well as those in the Technical and Financial Proposals
(ZCWD-JV-SC-B.4.1).

For PSPs, all members of the Joint Venture shall each submit all the legal, technical
and financial documents specified in this section. Foreign members of the Joint
Venture shall each submit the equivalent legal, technical and financial eligibility
documents submitted by local Joint Venture members.
The assessment of a PSPs eligibility will be limited to establishing the completeness
of each PSP's eligibility requirement by determining the presence or absence of the
documents required against a checklist of requirements using non-discretionary
pass/ fail criteria during the bid opening as prescribed in Section __, Instructions to
PSPs. If a PSP submits the specific eligibility document required, it shall be rated as
"passed" for that particular requirement. However, failure to submit a requirement
or an incomplete or patently insufficient submission shall be considered "failed" for
the particular eligibility requirement concerned. This shall be without prejudice to
the right of the ZCWD-JVSC to verify the substance and/or contents of any of the
submitted eligibility documents during the evaluation stage in order to validate the
substance of the same.

Section 4
_________________________

Documents to be Submitted Comprising th

NON-REVENUE WATER REDUCTION AND

NETWORK RESTRUCTURING PROJECT

A TECHNICAL PROPOSAL SUBMITTED BY:

(The name of PSP or, in the case of a consortium or joint
venture,
the name of the members thereof)

TABLE OF CONTENTS
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.

Certification of Bid
General Approach
Project Study
Logistics Plan
DMA Formation Process
Diagnostics on Causes of NRW
NRW Reduction Plan for Physical and Commercial Losses
Pressure Management Strategy
DMA Data Management
Implementation Plan
Technology Transfer Plan
List of Proposed Materials and Equipment (including brand)
Staffing Plan
Proposal Security
Representatives Authority to Sign Proposal

Section 1 - Certification of Bid

CERTIFICATION OF BID
For:
1.0

Non-Revenue Water Reduction and Network Restructuring Project

Zamboanga City Water District
GENERAL

In accordance with the provisions of the Selection/Tender Documents for the nonrevenue water (NRW) reduction and network restructuring project (hereinafter
referred to as the Project) that will cover the service area of Zamboanga City
Water District (ZCWD), and all attachments, exhibits and documents referred to
therein, _____________________ (the BIDDER) hereby offers to finance and undertake
the Project and implement the same in accordance with provisions set forth herein.
The BIDDER understands that ZCWD shall rely on the following representations in
evaluating and ranking the Bids and that the inability of the BIDDER to substantiate
the basis for any representation may result in adjustment of his rating, or in the
event of a misrepresentation, disqualification from the competitive challenge
process for the Project.
The BIDDER understands that this Bid shall be incorporated directly into and made
part of the Agreement. The Bid and other guarantees shall constitute material terms
of the Agreement.
2.0

PROJECT DESCRIPTION

The BIDDER warrants the financing and undertaking of the Project, assuming cost
overruns, delays and specified performance risks, taking into consideration the
design issued with the Selection/Tender Documents, to implement the Project,
through a joint venture company (JVC) to be formed with ZCWD, for a period of
ten (10) years and turn over to ZCWD after the specified cooperation period
pursuant to the provisions, terms and conditions stated in the Selection/Tender
Documents.
Guaranteed Construction Period: _____ (Number) Years/Months.
The Bidder warrants to complete the Project on or before _________________, 20__.
Guaranteed Date of Start of Project Implementation: _____________
3.0

PROPOSAL SECURITY

As required by ZCWD, upon submission of the proposal, the BIDDER shall post with
ZCWD a Proposal Security in the amount specified in the Instructions to Private
Sector Participants in Philippine Pesos. The BIDDER hereby submits the following
Proposal Security in compliance with this requirement:
Proposal Security:
________________________________________________________
(State Amount)
________________________________________________________
(Form of Security)
________________________________________________________
(Bonding Company)
________________________________________________________
(Bonding Number)

________________________________________________________
(Validity Period)
4.0

BIDDERS CAPITALIZATION AND ORGANIZATION

List below as participants and/or other interested parties in the organization and
their equity holdings:
NAME OF PARTICIPANT

PARTICIPATION*

SHARE
OF
EQUITY (%)

TOTAL

Refers to participation as in Principal Sponsor, Consultant, Contractor,

Operator, Financier, Equipment Supplier, etc.

List below the officials of the organization and their company affiliations. In case of
a consortium, this refers to the Board of Directors of the Principal Sponsor.
MEMBERS OF THE BOARD OF DIRECTORS:
NAME
COMPANY

CORPORATE OFFICIALS:
NAME

5.0

POSITION

NOTICES

Communications with the BIDDER regarding this Proposal should be directed to:
Name : ________________________________________
Title : ________________________________________
Address : : ________________________________________
Telephone No. : ________________________________________
Telefax No. : ________________________________________
6.0

CERTIFICATION

The BIDDER certifies that all of the statements and representations made in this
Proposal, including exhibits, documents and other attachments are true to the best
of the BIDDERs knowledge and belief, and the BIDDER agrees to the bound by
representations, terms, and conditions in the Bidding Documents and the
Agreement.
Submitted by:
_______________________________________________________________
Name of BIDDER
_______________________________________________________________

Name and Signature of Authorized Representative

_______________________________________________________________
Designation
_______________________________________________________________
Date Signed
_______________________________________________________________
WITNESSES:
__________________________
(Name and Signature)
__________________________
(Address of Witness)

____________________________
(Name and Signature)
____________________________
(Address of Witness)

Section 2 - General Approach

Section 3 - Project Study
Section 4 - Logistics Plan
Section 5 - DMA Formation process
Section 6 - Diagnostics on Causes of NRW
Section 7 - NRW Reduction Plan for physical and commercial losses
Section 8 - Pressure Management Strategy
Section 9 - DMA Data Management
Section 10 - Implementation Plan
Section 11 - Technology Transfer Plan
Section 12 - List of Proposed Materials and Equipment (including
brand)
Section 13 - Staffing Plan
Section 14 - Proposal Security
Section 15 - Representatives Authority to Sign Proposal

A. TECHNICAL PROPOSAL FORMAT

Technical Proposal Components and Contents
The PSPs proposals must be submitted in two (2) separate sealed envelopes, the
first envelope being the Technical Proposal and the second envelope being the
Financial Proposal.
The Technical Proposal contained in the First Envelope shall have the following
documents and information:
(1) Title Page
NON-REVENUE WATER REDUCTION AND
NETWORK RESTRUCTURING PROJECT
(The name of PSP and members of the consortium, joint venture or
partnership must also be indicated on this page, with emphasis on the
name of the ZCWD)
(2) Table of Contents a listing of the contents of the Proposal, to include
annexes, tables, illustrations, and other attachments
(3) Certification of Bid a certification of the PSPs submission and
compliance with the requirements in the Selection/Tender Documents
(4) Detailed methodology setting out the manner in which the PSP proposes
to carry out the Project
(5) Detailed demonstration of understanding of local conditions and possible
implementation problems specific to ZCWD
(6) Detailed information about the logistics for contract implementation
(7) Detailed description on how the network restructuring and DMA
establishment shall be carried out from the detailed DMA design to the
commissioning process
(8) Detailed description on how the NRW components are determined and
quantified
(9) Detailed description on how to address the physical and commercial loss
problems in order to reduce the NRW
(10) Detailed description on problem analysis related to pressure
management and the provision of applicable technical solutions
including specifications for pressure reducing valves in compliance with
Technical Specifications stated in the Selection/Tender Documents.
(11) Detailed description of the technology to be used in data logging and
data collection and their applicability in Zamboanga City and software to
be used
(12) Detailed work plan and time schedule for the Project
(13) The mode of transfer of knowledge and expertise to ZCWD and training
arrangements for ZCWDs staff, including number and position of ZCWD
staff to be trained and the means of conducting such training

(14) Supporting documentation and technical specifications of all materials

and equipment specified in the Technical Specifications provided in the
Selection/Tender Documents.
(15) Detailed staffing plan setting out the PSPs proposed positions for Key
Staff and the qualifications, years of experience and areas of expertise
for each of the proposed positions
(16) Proposal Security in the form, amount and period of validity prescribed
in Clause 4.6 of the Instructions to Private Sector Participants.
(17) Notarized special power of attorney or board resolution authorizing and
empowering the representative/s of the PSP to sign, execute and deliver
the proposal and to bind the PSP
Required Marking/Labels of Bid Envelopes
Envelopes must be rightfully marked as ORIGINAL or COPY. The PSPs name and
address must also be written to enable the JV-SC to return the Bid unopened in case
the Bid submission is declared late.
If the envelopes are not properly sealed and marked as instructed, the JV-SC shall
assume no responsibility for the misplacement or premature opening of the
submitted Bid. A Bid which is opened prematurely for this cause will be rejected by
the JV-SC and returned to the PSP.
The Technical Proposal shall have the following markings/labels:
ORIGINAL/DUPLICATE No. __
(NAME AND ADDRESS OF PSP/BIDDER)
NON-REVENUE WATER REDUCTION AND NETWORK RESTRUCTURING PROJECT
First Envelope Technical Proposal
Joint-Venture Selection Committee
Zamboanga City Water District
Pilar Street, , Zamboanga del Sur

Number of Original and Duplicate Bids to be Submitted

The PSP shall submit its technical proposals in the following manner to the JV-SC:
(a) one (1) original set
(b) nine (9) duplicate sets

B. TECHNICAL PROPOSAL EVALUATION CRITERIA

In order for a PSP to successfully pass this technical evaluation and progress to the
Second Stage, the technical proposal of the PSP should pass all of the following
technical evaluation criteria:
(1) Methodology must be clear, provide sound solutions and demonstrate a
comprehensive approach for the entire scope of the Project.
(2) Methodology must provide sufficient level of detail to demonstrate a
good understanding of local conditions and possible implementation
problems specific to ZCWD.

(3) Methodology must include detailed information about the logistics for
contract implementation (material management; location, size and
numbers of offices and stores)
(4) Methodology shall clearly describe how the network restructuring and
DMA establishment shall be carried out from the detailed DMA design to
the commissioning process.
(5) Methodology shall clearly define the methods on how to determine the
causes of NRW problems in the DMA and quantify its components.
(6) Methodology must include detailed information on how to address the
physical and commercial loss problem in order to reduce the NRW.
(7) Methodology must include detailed problem analysis related to pressure
management and provide applicable technical solutions including
specifications for pressure reducing valves in compliance with Technical
Specifications stated in the Selection/Tender Documents.
(8) DMA data management methodology must describe the technology to
be used in data logging and data collection and their applicability in
Zamboanga City and software to be used.
(9) Work plan must be comprehensive and must include a detailed time
schedule for each activity under the Project.
(10) The mode of transfer of knowledge and expertise to ZCWD and training
arrangements for ZCWDs staff must be clearly provided including
number and position of ZCWD staff to be trained and the means of
conducting such training.
(11) The proposed materials and equipment must comply with the
requirements and standards specified in the Technical Specifications
provided in the Selection/Tender Documents.
(12) The staffing plan must provide, at minimum, positions, qualifications,
years of experience, responsibilities, and areas of expertise of all staff.
(13) The Proposal Security must be in the form, amount and period of
validity prescribed in Clause 4.6 of the Instructions to Private Sector
Participants.

Section 5
_________________________

Documents to be Submitted Comprising th

FINANCIAL PROPOSAL SUBMISSION FORM

[Date]

ZAMBOANGA CITY WATER DISTRICT

Joint Venture Selection Committee
Pilar St., Zamboanga City
Gentlemen:
[NAME OF PSP] hereby offers to undertake the Non-Revenue Water
Reduction and Network Restructuring Project of the Zamboanga City Water
District (ZCWD) in accordance with your Selection/Tender Documents
dated _______ and our Bid (Technical and Financial Proposals).
OUR
FINANCIAL PROPOSAL IS FOR AN ANNUAL FIXED FEE OF __________ PESOS
(PHP___________) OR A TOTAL OF __________ PESOS (PHP___________) FOR
THE DURATION OF THE PROJECT AND A PERFORMANCE FEE OF __________
PESOS (PHP________) PER CUBIC METER OF REDUCED NRW VOLUME OR A
TOTAL OF __________ PESOS (PHP________) FOR THE DURATION OF THE
PROJECT. THE DETAILS OF OUR FINANCIAL PROPOSAL ARE PROVIDED
IN ANNEX ___ WHICH IS ATTACHED TO THIS PROPOSAL.
Our Financial Proposal shall be binding upon us up to expiration of the
bid validity period, i.e., ______.
We acknowledge and accept ZCWDs right to inspect and audit all
records relating to our Financial Proposal irrespective of whether we enter
into a contract with ZCWD as a result of this proposal.
We confirm that we have read, understood and accepted the contents
of the Selection/Tender Documents, Instructions to Private Sector
Participants, the Draft Joint Venture Agreement and Non-Revenue Water
Reduction Services Agreement, the provisions relating to the eligibility of
Private Sector Participants and applicable guidelines for entering into a Joint
Venture Agreement with Government Entities, any and all Pre-selection
and supplemental bulletins issued and other attachments and inclusions
included in the Selection/Tender Documents.
We understand you are not bound to accept any proposal you receive.
Yours sincerely,
NAME OF PSP
By:
Name and Title of Authorized Signatory
TECHINICAL PROPOSAL TABLE
PROPOSAL DETAILS
YEAR
FIXED FEE
YEAR

1
2014
A

2
2015
A

3
2016
A

FIXED ANNUAL FEE = _____(A)________

4
5
6
2017
2018
2019
A
A
A

7
2020
A

PERFORMANCE FEE = _______(B)_________

4
5
6

PERFORMANCE FEE (A)

CUMULATIVE VOLUME FOR
RECOVERY (B)
INFLATION (C)
TOTAL (A X B X C)

2014
B

2015
B

2016
B

2017
B

2018
B

2019
B

2020
B

PROPOSAL (X + Y) = ______________________________

A. FINANCIAL PROPOSAL FORMAT

Financial Proposal Components and Contents
The PSPs proposals must be submitted in two (2) separate sealed envelopes, the
first envelope being the Technical Proposal and the second envelope being the
Financial Proposal.
The Financial Proposal contained in the Second Envelope shall have the following
documents and information:
(1) Compliance statements with regard to the financial parameters stated in
the Selection/Tender Documents, which shall include those on liquidated
damages, performance and warranty bonds, insurance cover for the
Project including comprehensive general liability insurance, and warranty
period and procedures after completion of the Project and turnover of the
facilities to ZCWD.
(2) Financial proposal corresponding to the parameters set by ZCWD in
relation to:
(i)
The Fixed Fee; and
(ii)
The Performance Fee per cubic meter of volume recovered.
The second envelope must contain the proposed Fixed Fee and
Performance Fee with the grand total for the entire duration of the
project. (See Financial Proposal Table in this Section.)
FIXED FEE
The fixed fee shall be set at an equal annual fee over the duration of the
project, inclusive of the applicable VAT.
This fee to be paid by ZCWD to the JVC refers to services that are not
directly linked to reducing NRW but are essential for the Project in terms of
identifying which areas to prioritize, ensuring that NRW is maintained at
target reduced levels and covering key fixed operating costs such as
personnel, ZCWD personnel training, and general and administration
expenses, among others.
The fixed fee shall be paid quarterly in equal amounts by ZCWD to the
JVC, throughout the duration of the Project.
PERFORMANCE FEE
This fee refers to services that are directly linked to reducing NRW. It
involves leak detection and repair, pipe replacements, meter
replacements, cut and plugs, including necessary tools, equipment and
software.
The performance fee shall be represented by a fee paid for every
cumulative volume of water (expressed in terms of cubic meters)
recovered annually based on the baseline NRW volume at the start of the
NRW project (cumulative NRW). The performance fee shall be payable
on a quarterly basis. The same fee shall be subject to actual inflation
annually, using the consumer price index (CPI) for the Philippines for that
year published by the National Statistical Office of the Republic of the
Philippines and shall be inclusive of VAT.
Required Marking/Labels of Bid Envelopes

Envelopes must be rightfully marked as ORIGINAL or COPY. The PSPs name and
address must also be written to enable the JV-SC to return the Bid unopened in case
the Bid submission is declared late.
If the envelopes are not properly sealed and marked as instructed, the JV-SC shall
assume no responsibility for the misplacement or premature opening of the
submitted Bid. A Bid which is opened prematurely for this cause will be rejected by
the JV-SC and returned to the PSP.
The Financial Proposal shall have the following markings/labels:
ORIGINAL/DUPLICATE No. __
(NAME AND ADDRESS OF PSP/BIDDER)
NON-REVENUE WATER REDUCTION AND NETWORK RESTRUCTURING PROJECT
Second Envelope Financial Proposal
Joint-Venture Selection Committee
Zamboanga City Water District
Pilar Street, , Zamboanga del Sur

Number of Original and Duplicate Bids to be Submitted

The PSP shall submit its financial proposal in the following manner to the JV-SC:
(a) one (1) original set
(b) nine (9) duplicate sets
B. FINANCIAL PROPOSAL EVALUATION CRITERIA
The financial evaluation shall involve the assessment and comparison of the
financial proposals of the PSPs, based on the following parameters and criteria for
evaluation of the financial proposals provided by the JV-SC:
(1) The total price for Fixed Fee over the duration of the Project (i.e. 10 years)
offered by the Prospect Private Sector Partner; plus
(2) The total price of the Performance Fee multiplied by projected recovered
volume of water (in cubic meters) over the duration of the Project (i.e. 10
years).
The PSP which submits the lowest sum of (1) and (2) above shall be the winning
PSP.

Section 6
_________________________

Minimum Standards and Specifications

MINIMUM DESIGN AND SPECIFICATION STANDARDS

a)

The competitive proposals should be anchored on the minimum design

standards and specifications set forth below. Non-conformity with any of the
hereunder minimum standards and specifications shall render the proposals as
non-responsive, thus resulting in the disqualification of the private sector
proponent (PSP) from the competitive challenge process.

b) The minimum design standards and specifications set forth below refer both to
the financial viability and the engineering integrity which are required for the
development, implementation, financing, operation and management of a NRW
reduction and network restructuring program (hereinafter referred to as the
Project) that will cover the service area of ZCWD.
b.1

Joint Venture Activity:

The components of the joint venture activity (JV Activity) are listed below and shall
include the supply of labor, materials, equipment and associated software as well as
health, safety and environmental provisions to implement the JV Activity and the
Project.

Preparatory Works

Development of all mains model for the network

Design of the DMA isolation scheme

Establishment of thirty three (33) DMAs within the central distribution

system;

Pipe Condition Assessment

NRW Reduction
o

Baseline NRW Measurement and analyses

Nightflow measurement and analyses

Step Testing

Leakage Detection

Leak Repair of mainline and service pipe

Replacement of service pipe

Decommissioning of abandoned lines

Replacement/ rightsizing of water meters

Pressure Management

NRW Maintenance

Financing

The above activities shall be undertaken within the City of Zamboanga through the
Joint Venture Company (JVC) to be formed by the PSP and ZCWD in accordance
with the terms and conditions stated in the Selection/Tender Documents.
b.2

The competitive proposal to be prepared by the PSPs shall be focused on the

attainment of the following minimum DMA Formation and NRW Reduction
targets, viz:
TARGETS

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 710

Recovered Volume
(cumulative mcm)

0.07

3.11

6.39

8.92

10.2
7

10.27

10.27

b.3 The design and technology to be used to implement the Project should be in
accordance with existing laws, rules and regulations and the health and
environment standards set forth by the Department of Public Works and
Highways (DPWH), City Engineers Office (CEO), Department of Health
(DOH) and Department of Environment and Natural Resources (DENR).
Likewise, it shall be compliant with all applicable national and local laws, rules
and regulations.
The competitive bids, therefore, should explicitly describe in the technical
proposal the strategy to reduce the NRW and its components, physical and
commercial losses, based on target.
b.4 The engineering design and specifications shall observe the following
minimum criteria and standards:
PARAMETERS

MINIMUM CRITERIA AND

STANDARDS

MATERIAL SPECIFICATION

AWWA AND EQUIVALENT ISO OR

BETTER (SEE ANNEX)

TYPE OF DISTRICT METERS TO BE

USED

MECHANICAL METER W/ LOGGER

STRATEGY FOR PHYSICAL LOSS

REDUCTION

INTERNATIONAL STANDARDS AND

BEST PRACTICES (IWA, AWWA, WRC)

STRATEGY FOR COMML LOSS

REDUCTION

INTERNATIONAL STANDARDS AND

BEST PRACTICES (IWA, AWWA, WRC)

PRESSURE MANAGEMENT
STRATEGY

INTERNATIONAL STANDARDS AND

BEST PRACTICES (IWA, AWWA, WRC)

b.5 Further, as a Joint Venture Company, the business model and/or financial
plan shall observe the following fixed criteria and standards, as follows:

c)

Equity Participation
PSP
70% (in the form of cash)
ZCWD 30% (in the form of cash and materials; provided
that contribution in the form of materials shall be limited to
10%)

Debt-to-Equity ratio 60:40

The Financial Proposal shall contain a fee arrangement for the

Project to be paid by ZCWD to the JVC based on the following:
FIXED FEE
This fee refers to services that are not directly linked to reducing NRW but are
essential for the Project in terms of identifying which areas to prioritize,
ensuring that NRW is maintained at the reduced levels and covering key fixed

costs such as personnel, ZCWD personnel training, and general and

administration expenses, among others. These services and the related costs
are captured in the table below. The Fixed Fee shall be paid on a quarterly
basis without the need for fee recalculation or adjustments throughout the
duration of the Project.
The said fee should incorporate the price
adjustments, potential risk expenses, as well as cost inflation over the
duration of the Project, and inclusive of the applicable VAT.
DMA Formation including Overhead and Miscellaneous______:
Network
Restructuring
Program
District Metering Area
(DMA) formation and
management

Remarks/Particulars

Overhead and
Miscellaneous
Overhead and
Miscellaneous

Installation of line meter and pressure regulating

valves (where applicable) with manhole and data
logger
Installation and/or replacement of isolation valve
Looping/interconnection of mainline
Installation of critical pressure monitoring points
Transfer of service pipe affected by isolation, if
necessary
Surveying, test pitting, cut & plug
baseline inflow and pressure measurement based on
billing cycle prior to starting any activities;
pressure management: stabilizing, managing and
reducing average DMA pressure using PRVs and
various techniques as appropriate
Remarks/Particulars

Pre-Operating Expenses
Personnel Costs
Training and Development Expenses
Premises Costs (office furnishings, equipment,
supplies, rental fees, utilities)
General and Administrative Expenses (Janitorial and
security, insurances, etc.)
Management / Professional Fees (Salary & Benefits of
Project Director, Network Planner, Finance &
Administration Manager, Network Specialist, Field
Engineers)
Performance Bond
Vehicle-related expenses (registration, maintenance,
etc)
Others (Travel, communications, permits, taxes, and
licenses)

The Fixed Fee shall be paid equally per quarter. For bid evaluation, the
lowest Fixed Fee per quarter shall be considered most favorable and
advantageous to ZCWD with regard to this item.
PERFORMANCE FEE
In all DMAs established under the NRW Reduction Service Agreement, the
winning PSP shall take all necessary action, provide all required services and
materials and carry out all works required to achieve the objective of the
contract and reduce NRW in the contract area in accordance with the set

minimum target volume. Recognizing that this aspect of the Project involves
several activities, materials and equipment, the fee per cubic meter of
volume recovered to be proposed shall be adjusted to actual annual inflation
during operation. For the purpose of determining the fee for this bid, which
shall be inclusive of applicable VAT, a five percent (5%) inflation rate
compounded annually shall be used on the proposed Performance Fee on
year one (1) by the PSP.
NRW Reduction and
Management
Services
Active NRW Reduction
Activities

NRW-related Costs

Remarks/Particulars
-

Selective Service Pipe Replacement

Water Meter Testing /Replacement
Leak Repair (Mainline and Service Pipe)
Cut and Plug (Mainline and Service Pipe)
NRW-related Maintenance expenses
Continuous monitoring of DMA inflow, pressure
and minimum night flow and execution of leak
detection and repair should the tolerance limits be
exceeded required to carry out all activities that
might become necessary to achieve the objective
of the contract.
- NRW Equipment : leak noise logger, leak pen, ground
microphone, data logger, pipe locator, inside pipe
CCTV, Software (GIS, network modeling)
- Vehicles

The Performance Fee shall be paid by ZCWD to the JVC for every cubic meter
of water saved or recovered from the Project. To illustrate the computation of
recovered volume for Year 1, the recovered volume shall be computed on a
cumulative savings from baseline NRW measurement at Year 0 to the end of
Year 1. This computation shall be the same on a year on year basis where
NRW measurement at the end of every year shall be measured against the
baseline NRW level measured at Year 0.
For bid evaluation, the lowest performance fee per cubic meter of reduced
volume per quarter or per year shall be considered most favorable and
advantageous to ZCWD with regard to this item.
The determination of the winning PSP shall be based on the rules on the
evaluation of technical and financial proposals provided in the
Selection/Tender Documents.

Section 7
_________________________

Draft Joint Venture Agreement

Section 8
_________________________

Draft NRW Reduction Service Agreement

Section 9
_________________________

Pre-Feasibility Study