The physical implementation of the project has just commenced, but the steps that were taken to reach this point has provided major learning experience to the Government, Ministry of Finance MOF, Ministry of municipalities and Agriculture [MMAA], Electricity & Water Authority [ EWA], particularly on details negotiation techniques, Selection of Technologies, pricing, Environmental policies
The strategy adopted was to obtain the best technology, at the lowest price. Hence different plant options were considered, the pricing was difficult as the Engineering Procurement and Construction (EPC) price of the plant was an important input. Hence through negotiation, an open book approach was adopted. This mandates the details of the plant as well as its cost will to be approved.
The strategy was to involve the best available consultants, who are knowledgeable in the field. Thus Mott McDonald environmental team was involved in the technical aspect of the project, including power connection to the national grid.
Mott McDonald provided the detailed technical specification though “Minimum Technical Specifications for the Developer to follow.. The specifications is gave in very great detail the technical features of the plant and its operation as well as the environmental standards to be followed. FreshFelds provided the legal input which needed agreement covering the full 25 years of operations. Financial input was also sought from Mott McDonalds to determine the unit price to be paid. Further consultants will follow, for the escalations clauses in the contract where the price that is escalated in accordance with the cost of living index in the kingdom
The inter ministerial team were deeply involved in the detailed formulation and evaluation, as well as reviewing agreements which anticipated events over a 25 year period. The team obtained a very thorough knowledge of the privatization model based on Public private partnership, and the technical input necessary for projects which are over a long period.
This project has deadlines, and performance standards for both sides, which are time bound and which are protected through of penalties. These are new levels of performance standards for the government, benchmarked against international standards.
It had transformed the entire administration. Tight productivity targets, performance measurements, and environmental standards equaling the western standards.
An environmental impact assessment was conducted, by consultants specialized in environment studies. The project will secure carbon credits, and studies have been conducted on the way it should be presented to international authorities.