Terms of Reference

PMD I ENGINEERING I DECDD

CONTRACT NO : OP-14-WP-CS-01

PROJECT TITLE PROPOSED PRE- FEASIBILITY STUDY OF EXTRACTING SURFACE

WATER FROM DAMS IN CAVITE

DATE April 1, 2014

1.0 PROJECT BACKGROUND

1.1 Background Information

Maynilad is the water and wastewater services provider for the 17 cities and municipalitiesthat comprise the West Zone of the Metro Manila in the Philippines to operate, maintain andinvest in the water and sewerage system in Caloocan, Las Pinas, Malabon, Manila,Muntinlupa, Navotas, Pasay, Paranaque, Valenzuela, parts of Quezon City, a part of Makati,Cavite City, and the municipalities of Rosario, Imus, Noveleta, Bacoor, and Kawit in Cavite.

In terms of water supply, the main raw water source is the Angat Dam. As part of the supplyreliability initiatives and resilience to climate change, Maynilad is implementing a series ofalternative raw water sources. The possibility of putting up localized small water treatmentplants in the southern part of the West Concession is being considered to ensure reliablesupply of water especially during calamities. This can also be used for expansion of waterservice connection and dependency on deep wells.

1.2 Project Rationale

Maynilad is currently supplying water to 95% of the West Concession. Six percent ofwhich is in the area of Cavite. Currently, Maynilad supplied an average of 106 MLD of waterin Cavite City and the Municipalities of Rosario, Imus, Noveleta, Bacoor and Kawit. 96.3%percent) of the water supplied to Cavite comes from La Mesa Water Treatment Plantsthrough Pacgor pumping station. The bulk of the water is drawn from deep wells whichconstitutes 95% of the total water supply. Specifically, six out of the 10 operational deepwells stations of Maynilad are located in the South/Cavite Area namely: (1) Malagasang 2-Din Muntinlupa City, (2) Molino Heights in Molino IV, Bacoor, Cavite. (3) Pandawan in Rosario,Cavite, (4) Poblacion, Noveleta, Rosario, Cavite, (5) Rivero in Cavite City, and (6) NewCriscini in Cavite City.

According to the 2012 Maynilad Water Safety Plan, the water quality of the groundwater iscompatible with the PNSDW and thus, do not require any treatment except for preventivedisinfection using calcium hypochlorite. However, in the case of Cavite area, fluoride isrelatively high. Fluoride occurs naturally in groundwater and is very difficult to prevent oreradicate. This is especially present in the coastal areas such as Cavite. Part of the short-term solution is to dilute the groundwater with surface water and the permanent solution is tobring the surface water to these groundwater-supplied areas.

PMD-OP-ENG-08F1 MAYNILADWATER SERVICES, INC. MWSS COMPLEX, KATIPUNANAVE., BALARA1105 QUEZON CITY,PHILIPPINESRevision: o TEL. NO. +632 9813*,<,o

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2.0 OBJECTIVE/S

Maynilad Water Services, Inc. (Maynilad) is in the onset of expanding its service coverage in thesouthern part of the West Concession. The Water Production Department is mandated to continue itsdrive to explore new water sources intended for treatment and distribution particularly in the province ofCavite. Potential locations have been previously identified and a detailed study is needed to gather,test and ascertain the viability, treatability and potability of these prospective water sources.

A Pre-Feasibility Study of Extracting Surface Water from Dams in Cavite aims to conduct site visit tothe identified prospected water sources (General Trias and Plucena Dams) and to prepare, accomplishand submit a pre-feasibility study report on utilizing the prospected locations for potable water treatmentwith reliance to water quality and volume dependability.

3.0 THE PROJECT

Maynilad wishes to engage a consultant to prepare a pre-feasibility study of extracting surface water inthe proposed locations.

The result of the pre-feasibility study shall be the basis of evaluating whether a Detailed FeasibilityStudy will be pursued in the future.

4.0 PROPOSED WATER SOURCE LOCATIONS

Two water sources are being considered for this study. The General Trias and Plucena dams wereinitially shortlisted because of their potential to provide the needed volume of water to be treated,available land area near the dams that can be used as the site for water treatment facility, and strategiclocation. Table 1 shows the Global Positioning System coordinates of the two dams:

Table 1: Location of the Prospected Water Sources in Cavite

Dam Location GPS Coordinates

General Trias DamBgry Manggahan, General Trias,Cavite

14°18'49"N, 120°54'39" E

Plucena DamBrgy Pinagtipunan, General Trias,Cavite

14°21'50"N, 120° 52'28" E

5.0 SCOPE OF WORK

The Consultant shall conduct the tasks identified below by applying sound practices and methodsand shall collect and utilize available and necessary data in carrying out the assignment.

A. Project Identification - Data collection of the history, background, intended use, affectingwatershed, tributaries and river systems, volume capacity, spillways and climate andrainfall historical data of the prospected dams, including coordination with the owners ofthe existing dam facility.

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B. Geotechnical Assessment

C. Geological assessments including slope stability and risk to landslide

D. Hydrological Assessment - Dependability of water in terms of raw water volumes,

stream gauging, flood assessments, reservoir yield studies, identification of water usersand preparation of a water balance for the site under the present conditions

(undeveloped) and to identify potential changes in water allocation (should be supportedby detailed calculation)

E. Potability of water through water quality assessment

F. Seismic hazard assessment including study of liquefaction and lateral spreadingpotential

G. Initial Environmental Study/Assessment

H. Coordination with the necessary agencies to come up with a comprehensive Pre-Feasibility Study Report

I. Demonstration of Transfer of Knowledge

The Consultant shall be responsible for the professional quality, completeness, and coordination ofnecessary documents that will aid in drawing conclusions/recommendation for the continuance ornon-continuance of the next phase of a Feasibility Study. For the above scope, the Consultant shallcarefully provide quality reviews required by a sound professional consultancy and engineeringpractice, though Pre-Feasibility may entail non-destructive assessments or desktop reviews.

The level of detail required is expected to be commensurate with the risk and uncertainty posed bytaking available/ historical information. The Consultant is obliged to substantiate, to the satisfaction ofMaynilad, the accuracy and correctness of its provided results/ findings.

The Consultant shall not be absolved from its responsibility to independently verify or investigateinformation that a reasonable, prudent professional engineer or consultant should or would inquireabout.

6.0 IMPLEMENTATION SCHEDULE AND DURATION

a. Commencement of the services shall reckon from the signing of the Consultancy ServicesContract Agreement and receipt of the Notice to Proceed.

b. This shall remain in effect until the completion of all the required services and deliverables andissuance of the Certificate Acceptance for the Consultancy Services as per agreed program.

c. Consultant shall exert its best effort to complete the services within 60 calendar days from thecommencement of the services.

d. Consultant shall not be entitled for any additional fee should they exceed the contract duration asspecified.

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e. Maynilad shall be allotted five (5) working days to review all submitted documents and this shallbe considered in the program.

7.0 DELIVERABLES

Stage 1: Pre-Feasibility Study

A. Interim Report (3 hard copies)

B. Draft Pre-Feasibility Study Report (3 hard copies)

C. Final Pre-Feasibility Study Report (3 hard copies)

The Consultant shall also submit electronic file of each report enumerated above (in PDF, Word,

Excel and CAD formats or applicable).

The Consultant shall schedule and present to Maynilad the Pre-Feasibility Study Findings prior tosubmission of the Final Reports. This presentation aims not only to transfer knowledge but also toprepare Maynilad key players for the next phase of works of feasibility study, engineering andconstruction.

8.0 LOGISTICS

Maximum of four Maynilad personnel can join the Consultant team in data collection and site inspectionespecially during the geological, geotechnical and hydrological studies part of the project. All siteinspections and coordination with other government agencies and private institutions must becoordinated with Maynilad. The Consultant shall also provide for service vehicles during this part of thestudy at no additional cost to Maynilad.

9.0 TERMS OF PAYMENT

Payment for the three services shall be milestone-based and billings shall be supported bydeliverables. The Consultant to ensure that all required documents shall be attached to the billingrequest for ease of processing.

MILESTONEPAYMENT

PERCENTAGE

Advance Payment(Upon receipt of NTP and submission of Surety Bond for the Advance Payment)

15%

Upon submission of Draft Pre-Feasibility Report 50%

Upon submission of Final Pre-Feasibility Report 25%

Demonstration of Transfer of Knowledge orconduct of Capacity-Building program

10%

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TermS offence QPMD I ENGINEERING I DECDD

Maynilad

10. PENALTIES

If the service of a team member provided by the Consultant is not acceptable to Maynilad, theConsultant shall immediately replace the team member on request of Maynilad. If the Consultant fails toquickly deploy/replace a team member as instructed, Maynilad may make temporary arrangement. Thetemporary deployment/replacement shall be paid by the Consultant with commensurate reduction in theperson-month scope of this consultancy contract. This will however be a temporary arrangement and ifthe Consultant fails to deploy the requisite personnel or replace any member as instructed, Consultantshall be liable for action for termination of contract and/or black listing.

11. LIQUIDATED DAMAGES

The parties hereby agree that the damages which Maynilad will sustain as a result of Consultant's failureto perform the required processes to fulfil the deliverables specified in the Contract are difficult orimpossible to determine with certainty and, therefore, have in good faith estimated as fair compensation(and not as a penalty) the liquidated damages set forth. As and when applicable, Consultant shall agreeto pay Maynilad liquidated damages for every day of delay until the Services are completely performed,provided, any LD imposed shall not exceed ten percent (10%) of the total cost of Services. LD shall alsobe imposed when the Consultant failed to complete the milestones on every stage of the Contract withinthe time frame agreed by Maynilad and the Consultant.

In addition to the imposition of LD, Maynilad may, at its option, terminate this Agreement, cause anotherparty to perform the unfinished portion of the Services, and charge the cost thereof to Consultant.

The LD for each day of delay shall be computed using the following formula:

LD = 0.75 x PF/CP

Where:

a. PF is the Professional Fee less what has already been paid the Consultant for Services

rendered; and

b. CP is the remaining balance of the Completion Period (Duration called upon by NTP whichhas already been issued to the Consultant), plus any additional time that may have beengranted to Consultant.

Maynilad may, at its option, demand payment of the sum of liquidated damages or deduct the sum ofsuch liquidated damages from any monies due or that may become due to Consultant, and if suchmonies are insufficient, Consultant shall forthwith pay the deficient amount.

12. DISCLAIMER

Maynilad reserves the right to accept or reject any proposal, annul the bidding process and reject allapplications, discontinue the negotiation process or not to award the contract, at any time without therebyincurring any liability to Bidders.

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