Terms of Reference
Enhancing capacity of LGIs to address PPP contracts for FSM services

1. Introduction

SNV Netherlands Development Organisation had started its journey in 1965 from Netherlands as not for profit volunteer organisation. SNV have built a long-term, local presence in countries in Asia, Africa and Latin America working in the sectors of WASH, Agriculture and Renewable Energy through providing advisory services, facilitating knowledge development, networking, and carrying out advocacy at national and international levels. SNV mission is to make a lasting difference in the lives of millions of people living in poverty. For more information, please refer to our website: www.snv.org.

SNV is implementing an Urban Sanitation Programme in 5 Southern cities (Khulna, Jhenaidah, Kushtia, Jashore and Benapole) and Gazipur in Bangladesh over the past 6 years, through a multi-stakeholder’s coordination mechanism under the leadership of Local Government Institutions (City Corporations and Municipalities) to address service delivery challenges in Faecal Sludge Management (FSM). The project aim to facilitate a decisive shift in sector thinking, culture and practice through close alignment with respected sector agencies and working collectively with government and local partners to address underlying systemic sector issues that limit sector development. Under the Urban Sanitation and Hygiene for Health and Development (USHHD) approach, we work in 5 major components: 1) Sanitation demand creation and behavioural change communication; 2) Strengthening sanitation supply chain development; 3) Improving WASH Governance and multi-stakeholder sector development; 4) Sustainable Finance and Investment; and 5) Introducing environmentally safe treatment and re-use technologies.

2. Background and Rationale

Integrated faecal sludge management solutions must address gaps from emptying and collection to transportation, treatment and re-use. Business opportunities need to be created for all service providers at all levels of the sanitation value chain to incentivize entrepreneurs, households, and local authorities to implement and maintain safe and reliable systems. The business practices (and indeed business motivations) for each are quite distinct.  It is also clear that not all the private providers active in sanitation can truly be considered “entrepreneurs” in the sense of taking risks, being particularly innovative or able to invest much capital in their business. Key facets of entrepreneurship, along with risk taking (whether in formal or informal activities) is that entrepreneurs business is privately managed and financed and they seek to earn a financial return on their investment. The financing for FSM service provision comes from different source that include Government funding, grant funding from development agencies, private sector investment and potential financial institutions. Largely the Government provides the long term infrastructural funding. The Local Government Division-LGD deploys funding for providing City Corporations and Paurashava with vacutug and construction of the treatment plants. The conservancy budget of the City Corporation and Paurashava is deployed for subsidizing the revenue and expenditure deficiency. Alongside many development agencies also found to grant funds for both long-term infrastructural development and O&M subsidy. For example, development agencies providing vacutug to the service providers and providing fund for infrastructural development of treatment plant.

Development agencies providing FSM services are also found to subsidize O&M expenditures. The development agency funding is found largely to be one-time grant. Although the development agency funding is crucial to develop FSM infrastructure and this is not sustainable approach for FSM sector.

The effort to identify financing and investment opportunities, should be understood as a part of a multi-stakeholder engagement, which includes public, private and external actors. However, different development agencies now trying to involve private investors/ operators in their programme areas to make the FSM business sustainable by developing small scale Public-Private Partnership (PPP) model. Bangladesh government already has approved PPP framework, which is mainly for large infrastructure facilities for bigger investment projects; but within LGIs, the PPP concept is not yet developed due to lack of understanding on the subject, especially in sanitation services. Therefore, it’s really an utmost important to take steps jointly with LGIs (City Corporations/ Municipalities) to explore this mechanism for the FSM service chain and supporting and training activities for PPPs, at national and local government institutions.

4. Objectives

The main objective of this assignment is to strengthen the capacity and enhance knowledge on developing PPP contracts by City Corporations and Municipalities for addressing sanitation services.

The specific objectives of these activities are:

  • Revise the exiting ToRs/ PPP Contracts/ Service Level Agreements (SLAs) of current or proposed service contracts in the programme areas.
  • Understand the feasibility of development of PPP contract for FSM sector.
  • Train LGIs on developing PPP contract models/ SLAs and implementation for sanitation, especially FSM services.
  • Support LGIs to revise and improve the current contract agreements.

5. Scope of the work

This assignment is divided in four main activities:

Revision of existing PPP/ SLA contracts in programme areas and feasibility of PPP contracts:

  • Revise existing PPP contracts/ SLAs and provide City specific recommendations, in the programme areas, for improvement of the current agreements in:
    • Jashore Paurashava with Khan Agro Private Limited for FSTP operation (signed).
    • Jhenaidah Paurashava with AID Foundation for Emptying Service and FSTP operation.
    • Kushtia Paurashava with ERAS for FSTP operation and Co-compost production.
    • Khulna City Corporation, draft ToR for Emptying Service outsourcing.
    • Dhaka WASA with SWEEP for FSM service agreement (SLAs) for Emptying Services
    • Chittagong WASA with SWEEP for FSM Service (SLAs) for Emptying Services
    • Faridpur Municipality with Emptiers community for Emptying and transportation services and with SDC for FSTO and Co-compost production
    • Any other FSM service agreements with the private operator in other cities in Bangladesh
  • Assessment of the potential cities where a PPP contracts for FSM are viable to be submitted to PPPA. This should enable to understand when a PPP contract is viable taking into account the population, market potential, existing assets, economic situation in the city, other needs related to infrastructure, enabling institutional environment, etc. Meeting with PPPA will be required to understand the requirements, formats and process.

Develop Training module and conducting training for selected LGIs personnel

  • The consultant, with the communication of Training unit of PPPA, will develop a training module on PPP for LGIs with the focus on Sanitation and FSM.
  • Organize and facilitate a training/orientation which would be 3 day long (Half day travel to venue on First day and half day travel back on Third day) in Dhaka and for selected participants. PPPA will provide some general presentations about PPP models, PPP examples in Bangladesh. The consultant will lead the entire event and focus on PPP for FSM services.
  • SNV will arrange logistics for the workshop, including venue, accommodation and food, will also provide transportation for participants from municipalities.
  • The consultant will ensure confirmation of participants (SNV can support if required) and resource persons, guests, media coverage, lead and facilitation, reporting, etc.

Support LGIs to revise and improve PPP contracts.

  • After the training workshop on PPP for FSM services, the city officials will have better understanding of the PPP /SLA requirements. This is a good opportunity to share the findings about their specific PPP contracts within their cities and support them to make necessary improvements on current contracts or coming extensions/contracts.
  • Facilitate city specific meetings or workshop of one day with each municipality. Consultants will lead and facilitate this meeting, with support from SNV’s City Coordinators.
  • In specific for KCC, the City Corporation will publish a new contract for FSM services in the City. The consultants will support KCC revising the proposals and developing the new contract agreement as a PPP or SLA bases.

6. Deliverables

  • Inception Report.
  • Report on findings about PPP/SLA contracts on FSM in Bangladesh, including feasibility of PPP contract in FSM sector.
  • Module on Training for LGIs on PPP for Sanitation with focus on FSM services.
  • Facilitate a training event in collaboration with PPPA, in Dhaka or other selected city.
  • City specific report after meeting/workshop for revision recommendation on current PPP contracts.
  • Final report, summarizing all activities and including data, infographic, training module, interviews and meetings with PPPA, recommendations and action plan.

7. Responsibilities

Urban Sanitation Programme

  • Provide support to introduce with LGIs.
  • Support to provide programme documents; data from previous feasibility studies.
  • Pay the consultancy fee and costs related to the study (within the budget to be agreed upon by SNV and consultant/s).
  • Assist to meet with local stakeholders.
  • SNV will arranged logistics for the training event e.g. Venue, Food, stationaries, printing/ photocopies (location to be confirmed) for the participants.
  • Provide other input and assistance as appropriate.


  • Lead all activities under the assignments;
  • Responsible for the involvement of co workers/associates where applicable with the approval from SNV;
  • Consultant/s will bear any expenditure related to the assignment.
  • Consultants will confirm participation of PPPA in the workshop/training event.
  • Arrange for taking quality photograph for all events and photo consent of participants;
  • Submission of Deliverables within timeframe, if required extended time could be add with the agreement of both parties.

8. Timeframe

The total duration of the assignment will be for twelve (12) weeks after signing of the contract. Commencement of the service is expect to start by 22 September 2019.

Activity Time
1 Revision of existing PPP contracts in programme areas and feasibility of PPP contracts 3 Weeks
2 Develop Training module and conducting training for selected LGIs personnel 3 Weeks
3 Support LGIs to revise and improve PPP contracts 3 Weeks

9. Implementation arrangements

The consultant will report to the WASH Sector Leader, Bangladesh (SNV Urban Sanitation Programme) for each of the deliverables considering the timeframe, and will work closely with the Business Sanitation Advisor and Advocacy Advisor for day to day reporting, and with other team members and respective city authority and health authority under working areas.

10. Payment modalities

Payment will be made to the agreed account in 4 steps upon receiving of invoice: 1) 25% after signing the agreement; 2) 25% after submission of Report on finding about current PPP contracts; 3) 25% after conducting the training and finalizing the training module; 3) 25% after submission of final report and the rest of agreed deliverables.

SNV will make payments in compliance with the rules of Bangladesh Government. As per income tax law, Tax will be deducted at source based on confirmed % and should be in built with main budget. As per Govt. rules, VAT may be included or excluded to the main budget and kept at source (15%).

11. Qualifications/experiences

The consultant/s (individuals or agencies) should be a highly experienced professional in the field of PPP exercise/study, must have good knowledge on PPPA and LGIs (City Corporation/ Municipality) Financial Management, preferably with a focus on public health, sanitation and hygiene. The consultant should have international/National level experience in leading and facilitating Consultation workshop and keynote preparation, should have good communication skills to work with high level govt. officials.

12. Application

Interested Party or parties are requested to submit their technical and financial proposals separately with the details CV or organisational profiles, relevant experience, activities and milestones with budget details, time frame and details of focal person.

Electronic copy of the proposal duly signed should be submitted to bangladesh@snv.org  with the subject line: Enhancing capacity of LGIs to address PPP contracts for FSM services, by no later than 25 September 2019.

For any query related to the ToR, please email to Md. Tanvir Ahmed Chwodhury, Sanitation Business Advisor, Email: tchowdhury@snv.org.