VI. IMPLEMENTATION CHRONOLOGY OF THE BORTNYCHI SEWAGE TREATMENT PLANT MODERNIZATION PROJECT.
Being the Employer for the Project, PrJSC “Kyivvodokanal” started working over it in 2012. Considering a lack of funds for such a large-scale project, it was the state and international financial institutions who searched for financing sources.
In February 2012 the Executive Body of the Kyiv City State Administration commissioned PJSC “Kyivvodokanal” to be the Employer for the Bortnychi Sewage Treatment Plant Modernization Project.
In May the same year, funds were allocated (Resolution of the Cabinet of Ministers of Ukraine as of 17 May 2012, No. 279-p) for the development of design and cost estimation documents for the Project. It was the remaining funds of the State Environment Protection Fund with the Ministry of Regional Development, Construction and Housing and Utility Services of Ukraine.
In October 2012 amendments were made in regulatory documents of the Cabinet of Ministers of Ukraine for enabling PJSC “Kyivvodokanal” to receive the budgetary funds free of charge. At this point, design works for the Project started.
In December 2012, with the Embassy of Japan to Ukraine as a go-between, a letter was sent to Japanese International Cooperation Agency (JICA) referring to a possibility of allocating funds at JICA’s expense within the framework of Official Development Assistance (ODA).
In spring 2013 PJSC “Kyivvodokanal” and Japanese International Cooperation Agency (JICA) signed the first agreed Minutes of Discussion which defined the main directions of cooperation.
In early May 2013, JICA started conducting surveys and collecting needed data.
In October 2013 a mission of Japanese International Cooperation Agency came to Kyiv in order to discuss issues of possible cooperation within the Project.
This very month a Plan of First Priority Measures against Technology-Related Emergencies in BSTP in Kyiv was approved by the Resolution of the Cabinet of Ministers of Ukraine.
In late 2013 design documents of the stage “Project” were completed. Once the expertise of the design documents was done, the Project was approved by the Resolution of the Cabinet of Ministers of Ukraine of 23 April 2014, No. 450-p.
In February the representatives of Japanese International Cooperation Agency and PJSC “Kyivvodokanal” discussed matters of financing. It was decided that the grant money would be used for developing design documents (Detail Design documents) for Stage 1 of the Project (Components 1, 2, 4 and the concept design of Component 3).
In April 2014, the Prime Minister of Japan officially declared about the provision of loan for the implementation of the Bortnychi Sewage Treatment Plant Modernization Project.
Taking into account the fact that the Government of Ukraine approved the Draft Resolution of the Cabinet of Ministers of Ukraine regarding the adjusted design documents of Stage “Project” of 31 Mach 2015. On 08 April 2015 the Embassy of Japan to Ukraine sent the Official Note to the Ministry of Economic Development and Trade of Ukraine, Ministry of Finance of Ukraine, Ministry of Regional Development, Construction, Housing and Utility Services of Ukraine and Ministry of Foreign Affairs of Ukraine regarding the approval by the Government of Ukraine the final decision as to crediting the Bortnychi Sewage Treatment Plant Modernization Project for the amount of 108,193 million Japanese yens within the framework of Official Development Assistance (ODA) under Special Terms for Economic Partnership (STEP).
On 04 June 2015 the Cabinet of Ministers of Ukraine adopted Resolution No. 386 “On the allocation of funds in 2015 for the implementation of the Project “Reconstruction of wastewater treatment facilities and construction of production line for sludge processing and disposal at Bortnychi Sewage Treatment Plant”. Component 5. Preparation works enabling the fulfillment of assumed obligations within the limits of loan, namely carrying out of preparation works for the Project.
On 06 June 2015, a Loan Agreement (in the form of Exchange of Notes) was signed, which confirmed the understanding recently reached between the representatives of the Government of Japan and of the Government of Ukraine concerning a Japanese loan to be granted with a view to promoting the economic stabilization and development efforts of Ukraine. This being the fact, the Loan in Japanese yen up to the amount of one hundred and eight billion one hundred and ninety-three million yen (108,193,000,000) will be granted, in accordance with the relevant laws and regulations of Japan, to the Government of Ukraine by the Japan International Cooperation Agency (JICA) for the purpose of implementing the “Reconstruction of wastewater treatment facilities and construction of production line for sludge processing and disposal at Bortnychi Sewage Treatment Plant”.
On 15 June 2015, the Loan Agreement was signed between the Japan International Cooperation Agency and the Cabinet of Ministers of Ukraine, represented by Finance Minister of Ukraine. According to the Agreement, JICA confirms the provision of the loan in Japanese yens in the amount of one hundred and eight billion one hundred and ninety-three million yen (108,193,000,000) for the implementation of the Bortnychi Sewage Treatment Plant Modernization Project as part of the “Reconstruction of wastewater treatment facilities and construction of production line for sludge processing and disposal at Bortnychi Sewage Treatment Plant” project implemented by the Government of Ukraine.
On 02 September 2015, Law of Ukraine, No. 664 “On ratification of the Agreement (in the Form of Exchange of Notes) between the Government of Ukraine and the Government of Japan on granting the loan for the implementation of the Bortnychi Wastewater Treatment Plant Modernization Project as part of the “Reconstruction of wastewater treatment facilities and construction of production line for sludge processing and disposal at Bortnychi Sewage Treatment Plant” project
On 30 November 2015, considering the results of the discussion between the JICA delegation, representatives of PJSC “Kyivvodokanal” and JICA Study Team responsible for the development Detail Design documents, the Parties signed the Minutes of Discussion on the Development of Detailed Design documents for the Project, and distributed obligations of the Parties at joint work. Considering the results of this discussion, the official JICA’s application to the Ministry of Economic Development and Trade of Ukraine and provisions of Resolution by the Cabinet of Ministers of Ukraine of 15 February 2002, No. 153 and Agreement between the Government of Ukraine and the Government of Japan on Technical Cooperation and Grant of 10 June 2004, ratified by the Law of Ukraine of 01 July 2004, No. 1969-ІУ, 11 December 2015, the state registration of JICA’s technical assistance was done by PJSC “Kyivvodokanal” for development of detailed design documents for Stage 1 of the Project (Components 1, 2, 4 and development of the conceptual design for Component 3) by means of involvement of Study Team of Japanese design specialists.
From December 2015 Consultant 1 has been working in the territory of Ukraine (Joint Venture between TEC INTERNATIONAL Co., Ltd., NIHON SUIKO SEKKEI Co., Ltd. and NIPPON KOEI Co., Ltd.). Under the Grant conditions, he is obliged to develop the Detailed Design documents, Draft Bidding Documents for procurement of works (selection of Prime Contractor), provide support in the framework of the preparation of the Environmental Management Plan, Environmental Monitoring Plan and transfer of technologies.
On 16 December 2015, the Sub-Loan Agreement for Bortnychi Sewage Treatment Plant Modernization Project was concluded between the Ministry of Finance of Ukraine, PJSC “Kyivvodokanal,” and the bank JSC “Ukreximbank.” Under this Sub-Loan Agreement, all authorities and obligations for this Loan were delegated to the Ukrainian construction employer.
Within the limits of the Loan, in May 2016, the responsible performer of the Bortnychi Sewage Treatment Plant Modernization Project, which is PrJSC “Kyivvodokanal”, started the international bidding procedure for selection of Consultant 2 (Consulting Services under STEP loan).
The purpose of the said Consulting Services is to achieve the efficient and proper preparation and implementation of the Project within the established schedule through the following works of supporting bidding process of the procurement of works (Prime Contract), supervision of construction works, facilitation of implementation of the environmental management plan (EMP) and environmental monitoring plan (EMoP), capacity building plan, personnel training and transfer of technology.
Through 2017 the JICA Study Team (Consultant 1) continued works for the development of Detailed Design documents for the Project and preparation of the Draft Bidding Documents for the procurement of works.
Considering design and technological solutions, proposed by Consultant 1 at the Basic Design Stage, Directorate for Construction of Bortnychi Sewage Treatment Plant, PrJSC “Kyivvodokanal”, initiated the revision of the design documents of Stage P of the Project.
In late March 2018 Consultant 1 completed works of the Detailed Design documents development and preparation of the Draft Bidding Documents for the Project for the purpose of open international bidding process of the procurement of works (selection of Prime Contractor).
On 12 March 2018 PrJSC “Kyivvodokanal” signed a Contract with Joint Venture of (a consortium of Japanese companies) NIPPON KOEI Co., Ltd., TEC INTERNATIONAL Co., Ltd., and NIHON SUIKO SEKKEI Co., Ltd. (Consultant 2) for the period of 88 months.
According to the results of the Technical Bid evaluation, as carried out by the Japanese Consultant and PrJSC "Kyivvodokanal", the Bidder was judged as not meeting the evaluation criteria. On 17 October 2019, the respective report was sent to Japan International Cooperation Agency for its concurrence.
On 04 December 2019 PrJSC "Kyivvodokanal” received the final concurrence of the Technical Bid Evaluation Report from Japan International Cooperation Agency. In the result, the said Bid was rejected.
In compliance with the Guidelines for Procurement under Japanese ODA Loans, on 05 December 2019, the Bidder was officially (in writing) informed about the evaluation results. On 12 December 2019, following the Bidder’s request, a joint meeting of PrJSC "Kyivvodokanal”, Consultant 2 and authorized representatives of the Bidder was held where the Technical Bid evaluation results were explained in detail. As the Technical Bid was rejected, the Price Bid was returned to the Bidder unopened.
In consideration of provisions of the updated Implementation Schedule for the Bortnychi Sewage Treatment Plant Modernization Project, PrJSC "Kyivvodokanal” is planning to announce a Re-Bid for the procurement of Works for the Project early 2020.
During the first half of January 2020, PrJSC "Kyivvodokanal” and Consultant 2 updated the Bidding Documents for the procurement of works (selection of Prime Contractor) for the Project. The draft Bidding Documents were submitted to JICA for its concurrence on 17 January 2020. The official concurrence of the draft Bidding Documents were received from JICA on 7 April 2020.
On 13 May 2020, PrJSC "Kyivvodokanal” announced an open international bidding for selection of Prime Contractor in accordance with JICA rules.
An online pre-bid meeting was held with the support of Consultant 2 within the territory of PrJSC "Kyivvodokanal”. Among the attendees, there were potential bidders who had expressed desire to participate in bidding and representatives of respective state bodies and organizations of Ukraine.
Photo: Pre-bid meeting
In order to satisfy the conditions of the bidding procurement of works (selection of Prime Contractor) and to take in consideration respective clarification inquiries, PrJSC "Kyivvodokanal” carried out the BSTPMP Site Visiting with the participation of Bidders’ representatives on 23 and 24 July 2020.
Photo: Visiting BSA
Within the framework of international procurement procedure (selection of the general contractor) for the Project, PrJSC "Kyivvodokanal" on February 26, 2021, received the Bid from a group of Japanese companies. After receiving the proposal, its Technical Part was opened in the presence of representatives of PrJSC "Kyivvodokanal", the Japanese Consultant, the Ministry of Finance of Ukraine and authorized representatives of Bidder. Due to the epidemiological situation connected with spread of COVID-19 coronavirus infection and as a result of imposed restrictions on the number of participants in public events, the meeting on the opening of Technical Proposal was also broadcast online.
Photo: The opening of the Technical Part
According to the results of the evaluation of the Technical part of the Bid, which was opened on February 26, 2021, the Bidder was considered as meeting evaluation criteria and requirements of the Bidding Documents. The Financial part of the Bid was opened on March 17, 2021 on the territory of PrJSC "Kyivvodokanal". The opening of the Financial Envelope was carried out in the presence of entities concerned and Bidder’s authorized representatives. Due to the COVID-19 restrictions the meeting was also broadcast online.
Photo: The opening of the Financial Envelope
The Government of Japan finances the fulfilment of works within Components 1-4 (including disinfection facilities of Blocks 2 and 3), the Government of Ukraine is responsible for the fulfilment of preparation works within Component 5 as well as the preparation and adoption of laws of Ukraine as concerns the taxation of the Project implementation parties.
The evaluation procedure of the Technical and Price Bids received from the bidder was completed by PrJSC "Kyivvodokanal" at the end of April 2021. On April 23, 2021, the relevant Reports on the results of the evaluation were sent for JICA’s review and concurrence.
On June 15, 2021 JICA has issued its official concurrence, after consultation with relevant higher authorities in Japan, that notify no objection to the evaluation process done by PrJSC "Kyivvodokanal" and also the proposal for next step, negotiation with the bidder.
On June 15, 2021, PJSC JSC "Kyivvodokanal" and the Japan International Cooperation Agency (JICA) published a Joint Public Statement "On status of Bortnychi Sewage Treatment Plant Modernization Project".
On June 25, 2021, PrJSC "Kyivvodokanal" and the bidder agreed on a schedule of negotiations for the Project implementation.
Project Components financed by the Loan funds provided by the Japanese International Cooperation Agency (JICA)
Technical re-equipment of Blocks 2 and 3 facilities for ensuring regulatory treatment of the total volume of sewage water for the period of construction of new Block 1 with arrangement of the air deodorization system for Blocks' facilities.
Construction of sewage sludge mechanical dewatering section.
Construction of process line of sewage sludge disposal.
Construction of new Block 1.
*- obligations of the Ukrainian side.