Burao, Somaliland — September 2026
Burao Municipality, together with the Ministry of Local Governments and Urban Development, has officially issued a Request for Proposals (RFP) inviting qualified private-sector investors, recycling companies, waste-management operators, consortia, social enterprises, and other suitably experienced organisations to participate in the development, operation, management, and commercialisation of a new Solid Waste Recycling Facility in Burao Municipality.
The project will be implemented through a Public-Private Partnership (PPP) arrangement and is supported by the Sinaan Programme, funded by the UK Foreign, Commonwealth & Development Office (FCDO). 🤝♻️
Under the arrangement, Burao Municipality will make municipal land and specified recycling equipment available to the successful Tenderer.
The selected private investor will finance, construct, install, operate, maintain, and commercially manage the recycling facility while paying an annual lease fee to Burao Municipality.
The successful Tenderer will enter into a ten-year Lease, Develop and Operate Agreement with Burao Municipality.
📅 Important Tender Dates
Interested bidders should carefully note the following procurement schedule:
- 📢 Advertisement of RFP: 5 September 2026
- 📍 Site Visits: 12 September – 23 September 2026
- ❓ Deadline to Receive Queries: 21 September 2026
- 🤝 Pre-Bid Meeting and Responses to Clarifications: 23 September 2026
- 📥 Proposal Submission Deadline: 5 October 2026
- 📝 Technical Evaluation: 6 – 17 October 2026
- 💰 Financial Evaluation: 18 – 21 October 2026
- 🤝 Contract Negotiation: 31 October 2026
- 🏆 Contract Award: 5 November 2026
⏰ Final Submission Time
The final proposal submission deadline is:
5 October 2026 at 5:00 PM East Africa Time
Late submissions will not be accepted.
🏙️ Background: Why Burao Needs a Recycling Facility
Rapid urbanisation and population growth in Burao have resulted in significant increases in municipal solid-waste generation.
Current waste-management practices rely heavily on waste collection and disposal, with limited recycling and resource-recovery activities.
To address these challenges, Burao Municipality intends to establish a dedicated Solid Waste Recycling Facility.
The project aims to help improve environmental sustainability while supporting a stronger local circular economy. 🌱♻️
The Municipality intends for the facility to contribute to:
- Better environmental management
- Increased recycling
- Recovery of valuable materials
- Reduced dependence on disposal sites
- Green job creation
- New private-sector business opportunities
- Improved waste-management systems
💰 Public Assets Worth Approximately USD 265,000
Burao Municipality has committed substantial public assets to support the project.
These include:
🏞️ Municipal Land
Estimated value:
USD 15,000
⚙️ Recycling and Processing Equipment
Estimated replacement value:
USD 250,000
💵 Total Estimated Public Asset Value
USD 265,000
The selected Tenderer will be responsible for developing the project site, operating the recycling facility, maintaining the equipment, and commercialising recovered materials.
Ownership of all municipal land and equipment will remain vested in Burao Municipality throughout the lease period.
🎯 Main Objectives of the Project
The procurement has six key objectives.
These are to:
- 🏭 Establish a fully functional Solid Waste Recycling Facility.
- ♻️ Promote recycling and circular-economy practices.
- 🗑️ Reduce the volume of waste sent to disposal sites.
- 📈 Increase the recovery of recyclable materials.
- 👷 Create green jobs and business opportunities.
- 🌱 Improve environmental conditions within Burao Municipality.
⏳ 10-Year PPP Agreement
The PPP Agreement will operate for a period of:
10 Years
The agreement will be subject to review every:
5 Years
The first twelve months following the contract award will be treated as a:
🏗️ 12-Month Set-Up Period
This period will be used for mobilisation, site development, installation, commissioning, and preparation for commercial operations.
During the Set-Up Period:
- The operator will undertake site-development activities.
- The operator will undertake facility commissioning.
- No lease payment will be payable.
💰 Lease payments will begin from Month 13 of the Agreement.
🏛️ What Burao Municipality Will Provide
Burao Municipality will make several important contributions to the project.
🏞️ 1. Municipal Land
The Municipality will provide land designated for the Solid Waste Recycling Facility.
Estimated value:
USD 15,000
⚙️ 2. Recycling Equipment
The Municipality will provide recycling equipment with an estimated replacement value of:
USD 250,000
Details of the equipment are contained in Annex B of the RFP.
🤝 3. Institutional Support
Burao Municipality will:
- Facilitate access to the project site.
- Facilitate municipal approvals where required.
- Support stakeholder engagement.
- Facilitate coordination with waste-collection service providers.
🏗️ Private Investor and Operator Responsibilities
The selected private investor and operator will be responsible, at its own cost and risk, for financing, constructing, operating, maintaining, and managing the facility.
This means the successful investor will be expected to provide both financial and operational capacity throughout the duration of the PPP Agreement.
🏭 Site Development Requirements
The operator will be required to develop approximately:
🧱 400 sqm of Concrete Area
The concrete area will be designed to accommodate heavy equipment.
🏠 Approximately 300 sqm Open Processing Shed
The site will also include toilet and changing facilities.
The required site-development works include:
- 🚜 Site clearance
- 📐 Land levelling
- 🏗️ Earthworks and grading
- 🧱 Construction of approximately 400 sqm of concrete flooring for heavy equipment
- 🏠 Construction of roofing structures
- 🏭 Construction of an approximately 300 sqm open processing shed
- 🚧 Construction of perimeter fencing and gates
- 🛣️ Internal circulation roads
- 🛡️ Security facilities
- 💡 Lighting systems
- 💧 Water-storage and supply systems
- 🚻 Toilet facilities
- 👕 Changing facilities
🌍 Environmental Infrastructure Requirements
The operator will also be required to develop environmental-protection infrastructure.
This includes:
- 🌧️ Surface drainage systems
- 💦 Stormwater-management systems
- 🛡️ Pollution-containment measures
- 🚰 Wastewater-control systems
- 🔥 Fire-protection systems
- 📊 Environmental-monitoring systems
A critical environmental requirement is that:
⚠️ No polluted discharge should leave the facility site under normal operating conditions or during rainfall events.
⚙️ Operations and Maintenance Responsibilities
The successful operator will manage the day-to-day activities of the facility.
The operator will be required to:
- Operate the recycling facility on a daily basis.
- Maintain all municipal equipment.
- Recruit and supervise staff.
- Implement health and safety procedures.
- Develop recycling markets.
- Maintain operational records.
- Prepare quarterly reports.
- Prepare annual reports.
The operator will also work with a SINAAN Expert, who will supply buyer contacts for recyclable materials and support market development. 🤝
🔧 Facility Equipment Requirements
The Municipality will provide recycling equipment as listed in Annex B.
Tenderers must demonstrate that they have the technical capacity to:
- ⚙️ Operate the equipment.
- 🔧 Maintain the equipment.
- 📦 Procure spare parts.
- 📈 Maximise equipment utilisation.
- 👷 Train operational staff.
📍 Site Visit
Potential Tenderers are strongly encouraged to visit the project site before submitting their proposals.
The site-visit period is:
📅 12 September – 23 September 2026
Tenderers should carefully assess site conditions.
Failure to undertake a site visit will not relieve the successful Tenderer of any obligations arising from actual site conditions.
❓ Requests for Clarification
Requests for clarification must be submitted in writing no later than:
📅 21 September 2026
All clarification requests must be submitted to:
Procurement Committee
Burao Municipality
📧 Email: burmayor@gmail.com
🤝 Pre-Bid Meeting
A pre-bid meeting is proposed for:
📅 23 September 2026
📍 Burao Municipality
Interested Tenderers must submit the names of their representatives at least one day before the meeting.
👥 Participation Limit
Only two participants per organisation will be permitted.
📥 Proposal Submission Requirements
Tenderers must submit two separate proposal volumes:
📘 Volume I — Technical Proposal
📗 Volume II — Financial Proposal
⚠️ Late submissions will not be accepted.
📘 Technical Proposal Requirements
The Technical Proposal must contain the following forms.
📝 Form T1 — Letter of Submission
Tenderers must provide a formal Letter of Submission as part of their Technical Proposal.
🏢 Form T2 — Company Profile
The company profile must include:
- Registration documents
- Ownership structure
- Years of operation
- Contact information
🏗️ Form T3 — Relevant Experience
Tenderers must provide details of relevant experience in one or more of the following areas:
- ♻️ Waste-management or recycling facilities
- 🗑️ Waste-management operations
- 🏭 Industrial-processing facilities
- 🤝 PPP projects
- 🔄 Resource-recovery projects
- 🚢 Import/export experience
👥 Form T4 — Key Personnel
Tenderers must provide CVs and qualifications for key personnel, including:
- Director(s)
- Facility Manager
- Operations and Maintenance Supervisor
🏗️ Form T5 — Site Development Methodology
Tenderers must describe their proposed approach to:
- Facility layout
- Construction approach for the site
- Construction schedule
⚙️ Form T6 — Operations Plan
The proposed Operations Plan must explain:
- Waste-sourcing strategy
- Sorting methodology
- Processing methodology
- Equipment maintenance
🌱 Form T7 — Environmental and Social Management Plan
Tenderers must explain their proposed approach to:
- Environmental safeguards
- Occupational health and safety
- Gender-inclusion measures
- Community engagement
📊 Form T8 — Business Plan
Tenderers are required to submit a detailed Project Financial Model.
The assumptions used in the Bidder’s Model must be consistent with:
- Technical information
- Cost estimates
- Financial assumptions
- Workings
- Outputs included in the Technical Proposal
The financial model must include detailed:
- 💵 Cash-flow statements
- 📈 Income statements
- 📊 Balance sheets
The model must also clearly show:
📈 Project IRR
💼 Equity IRR
💳 DSCR — Debt Service Coverage Ratio
Tenderers must also provide:
👷 Employment Creation Estimates
💰 Financial Proposal Requirements
The Financial Proposal includes two main forms:
💵 Form F1 — Annual Lease Fee
🏗️ Form F2 — Capital Investment Commitment
💵 Form F1 — Annual Lease Fee
The Municipality is providing public assets with an estimated total value of:
USD 265,000
This comprises:
- 🏞️ Municipal land valued at approximately USD 15,000
- ⚙️ Recycling equipment with an estimated replacement value of USD 250,000
The land will be provided under the ten-year lease arrangement.
🏗️ 12-Month Rent-Free Set-Up Period
The successful operator will benefit from a 12-month rent-free Set-Up Period.
During this period, the operator will be responsible for completing all required development and commissioning activities.
These include:
- Land levelling
- Construction of flooring
- Construction of roofing
- Installation of perimeter fencing
- Provision of security infrastructure
- Connection to electricity services
- Connection to water services
- Construction of drainage systems
- Construction of pollution-control systems
- Installation of municipal recycling equipment
- Commissioning of municipal recycling equipment
- Recruitment of staff
- Training of staff
- Testing of operational systems
- Establishment of supply chains
- Establishment of off-take agreements
- Commencement of commercial operations
✅ No annual lease payments will be payable during the 12-month Set-Up Period.
The obligation to pay the Annual Lease Fee will begin from:
Month 13 following the Effective Date of the PPP Agreement
📈 Annual Lease Fee Increase
To preserve the real value of the lease over the contract period, the Annual Lease Fee will be adjusted annually in accordance with the PPP Agreement.
Unless otherwise agreed under the PPP Agreement:
📈 The Annual Lease Fee will increase by 5% per year, compounded annually.
The increase will commence on the first anniversary of the Lease Commencement Date.
For evaluation purposes, the Base Annual Lease Fee for Year One submitted in Annex E will be used.
💵 Lease Fee Guidance
Burao Municipality has established the following financial guidance:
🔻 Minimum Acceptable Annual Lease Fee
USD 12,000 per annum
🎯 Expected Competitive Lease Range
USD 12,000 – USD 18,000 per annum
⚠️ Any proposal offering an Annual Lease Fee below USD 12,000 may be considered non-responsive and may not be evaluated further.
🏗️ Form F2 — Capital Investment Commitment
Tenderers must provide detailed cost estimates for their proposed capital investment.
The cost estimates should cover:
- Site clearance and levelling
- Earthworks and grading
- Approximately 400 sqm of concrete flooring for heavy equipment
- Approximately 300 sqm open processing shed
- Perimeter fencing and gates
- Internal circulation roads
- Security facilities
- Lighting systems
- Water-storage and supply systems
- Toilet facilities
- Changing facilities
🏆 Evaluation Methodology
The proposal obtaining the highest combined score will be recommended for contract award.
The overall evaluation weighting is:
🧠 Technical Score — 70%
💰 Financial Score — 30%
🧠 Technical Evaluation Criteria
Technical proposals will be assessed out of a total of 100 points.
| Evaluation Criterion | Points |
|---|---|
| Relevant Experience | 10 |
| Site Development Methodology | 10 |
| Operations & Maintenance Plan | 10 |
| Environmental & Social Management | 10 |
| Business Plan & Market Development | 10 |
| Key Personnel & Organisation | 40 |
| Implementation Schedule | 10 |
| Total | 100 |
✅ Minimum Technical Score Required: 70 Points
💰 Financial Evaluation Criteria
The Financial Proposal will also be evaluated out of 100 points.
The financial weighting is:
| Financial Criterion | Weight |
|---|---|
| Annual Lease Fee Offered | 60% |
| Capital Investment Commitment | 40% |
| Total | 100% |
The purpose of the financial evaluation is to identify the proposal that provides the highest value to Burao Municipality through a combination of lease payments and private-sector investment.
🧮 A. Annual Lease Fee Score — 60%
The Tenderer offering the highest Annual Lease Fee will receive the maximum score of:
100 Points
Other proposals will be scored proportionately.
The formula is:
SL = 100 × (L / H)
Where:
- SL = Lease Fee Score of the proposal being evaluated
- L = Annual Lease Fee offered by the proposal being evaluated
- H = Highest Annual Lease Fee offered among all responsive proposals
🏗️ B. Capital Investment Commitment Score — 40%
The Tenderer committing the highest capital-investment amount for site development and facility establishment will receive:
100 Points
All other proposals will be scored proportionately using:
SI = 100 × (I / Imax)
Where:
- SI = Capital Investment Score
- I = Capital Investment Commitment of the proposal being evaluated
- Imax = Highest Capital Investment Commitment among all responsive proposals
📊 C. Overall Financial Score
The overall Financial Score will be calculated using:
Sf = (SL × 0.60) + (SI × 0.40)
Where:
- Sf = Financial Score
- SL = Lease Fee Score
- SI = Capital Investment Score
The proposal obtaining the highest Financial Score will receive a Financial Score of 100 points.
All other proposals will be normalised proportionately.
🏆 Combined Technical and Financial Score
The final combined score will be calculated as:
Final Score (S) = (St × 0.70) + (Sf × 0.30)
Where:
- S = Final Combined Score
- St = Technical Score obtained by the proposal
- Sf = Financial Score obtained by the proposal
🥇 Final Ranking
The proposal obtaining the highest Final Combined Score will be ranked first and recommended for contract award.
The recommendation will remain subject to:
- Successful negotiations
- Approval by Burao Municipality
⚖️ Tie-Breaking Rule
If two or more proposals receive the same Final Combined Score, preference will be given to the proposal offering the:
💵 Higher Annual Lease Fee
✅ Performance Requirements for the Successful Operator
The successful Operator must comply with several ongoing performance requirements throughout the PPP contract period.
The Operator must:
- 🏭 Maintain continuous operation of the facility.
- ⚙️ Maintain all equipment in operational condition.
- 📄 Submit quarterly operational reports.
- 📊 Submit annual audited financial statements.
- 🌱 Comply with environmental regulations, including but not limited to requirements contained in the PPP Agreement.
- 🏛️ Comply with municipal regulations.
- 🛡️ Maintain required insurance throughout the Contract Period.
- 📋 Maintain an up-to-date asset register covering municipal assets provided under the PPP Agreement.
- 🔧 Repair or replace municipal assets damaged as a result of operator negligence, wilful misconduct, or breach of the Agreement.
- 👀 Allow Burao Municipality or its authorised representatives to inspect the facility and municipal assets upon reasonable notice and during normal business hours.
- 🔄 Comply with asset-management, maintenance, and handback obligations contained in the PPP Agreement.
🛡️ Insurance Requirements
The Operator must maintain all insurance required under the PPP Agreement.
This includes, where applicable:
- Insurance covering municipal assets
- Third-party liability insurance
- Employer’s liability insurance
- Construction-risk insurance
📊 Key Performance Indicators — KPIs
The successful Operator will report quarterly against several operational, financial, environmental, and social indicators.
🗑️ Waste Management Indicators
The operator will report on:
- Quantity of waste received, measured in tons
- Quantity of recyclables recovered, measured in tons
- Quantity of residual waste disposed, measured in tons
💰 Commercial Performance
The operator will report:
- Revenue generated from recycling
👷 Employment and Social Impact
The operator will report:
- Number of jobs created
- Number of informal collectors from whom materials are purchased
⚙️ Equipment Performance
The operator will report:
- Percentage equipment availability
🌍 Market Development
Quarterly reporting will also cover:
- Country of customers purchasing output material
- Type of customers
- Sector of customers
🌱 Environmental Compliance
The operator will report on:
- Environmental compliance performance
🦺 Occupational Health and Safety
The operator will also report:
- Occupational health and safety incidents
📜 PPP Contract Conditions
The successful bidder will enter into a formal PPP Agreement with the Contracting Authority.
The agreement will include, among other things, provisions relating to:
🏗️ Lease and Development
⚙️ Operations and Maintenance
🌱 Environmental and Social Compliance
⚠️ Grounds for Possible Contract Termination
Burao Municipality reserves the right to terminate the PPP Agreement in situations including:
- Persistent non-performance
- Environmental violations
- Failure to make lease payments
- Unauthorised transfer of rights
📚 RFP Annexes and Supporting Documents
The RFP contains or refers to a number of important supporting annexes.
Tenderers are expected to review these documents carefully.
📍 Annex A
Land Details and Site Information
⚙️ Annex B
Equipment Inventory and Technical Specifications
🏗️ Annex C
Prototype Solid Waste Recycling Facility Design Drawings
📝 Annex D
Technical Proposal Forms
💰 Annex E
Financial Proposal Forms
📋 Annex F
Site Visit Registration Form
🤝 Annex G
List of Material Purchasers and Contact Details
📊 Annex H
Waste Composition/Generation Studies
🌱 Annex I
Environmental and Social Compliance Requirements
All annexes and relevant supporting documents will be provided at the Pre-Bid Meeting and/or Site Visit.
Tenderers should review all relevant documentation before submitting their proposals.
🌱 A Major Opportunity for Burao’s Circular Economy
The planned Burao Solid Waste Recycling Facility represents an important opportunity to improve the city’s waste-management infrastructure while creating economic value from recyclable materials.
By combining public assets with private-sector capital, expertise, and commercial management, the project aims to establish a sustainable recycling facility capable of supporting long-term environmental and economic benefits.
The initiative has the potential to:
- ♻️ Increase recycling and resource recovery
- 🗑️ Reduce the volume of waste reaching disposal sites
- 🌱 Improve environmental conditions
- 👷 Create green employment opportunities
- 💼 Support private-sector businesses
- 🤝 Strengthen markets for recovered materials
- 🏭 Expand local recycling and processing capacity
- 🔄 Encourage circular-economy development
With approximately USD 265,000 in public land and recycling equipment being made available, the project provides a significant investment opportunity for experienced private-sector organisations.
📢 Who Can Apply?
The RFP is open to suitably qualified and experienced organisations, including:
- ♻️ Recycling companies
- 🗑️ Waste-management operators
- 💼 Private-sector investors
- 🤝 Consortia
- 🌱 Social enterprises
- 🏭 Industrial-processing operators
- 🔄 Resource-recovery businesses
- 🚢 Organisations with relevant import/export experience
- Other suitably experienced organisations
📌 Key Opportunity Highlights
Potential Tenderers should note several major features of the project:
- 🏗️ 10-Year Lease, Develop and Operate PPP Agreement
- 🔍 Review every five years
- ⏳ 12-Month Rent-Free Set-Up Period
- 💵 USD 265,000 estimated value of municipal assets
- 🏞️ USD 15,000 estimated municipal land value
- ⚙️ USD 250,000 estimated equipment replacement value
- 🧱 Approximately 400 sqm concrete area
- 🏭 Approximately 300 sqm open processing shed
- 💰 USD 12,000 minimum annual lease fee
- 📈 USD 12,000 – USD 18,000 expected competitive annual lease range
- 📊 5% annual compounded lease-fee increase unless otherwise agreed
- 🧠 70% Technical Evaluation
- 💰 30% Financial Evaluation
- ✅ 70-point minimum technical threshold
📧 Clarifications and Contact Information
Tenderers seeking clarification must submit requests no later than:
📅 21 September 2026
Contact:
Procurement Committee
Burao Municipality
🤝 Attend the Pre-Bid Meeting
Interested Tenderers are strongly encouraged to attend the Pre-Bid Meeting and undertake a site visit.
📅 Pre-Bid Meeting
23 September 2026
📍 Location
Burao Municipality
Tenderers must submit the names of attendees at least one day in advance.
Only two representatives per organisation will be permitted.
⏰ Final Proposal Submission Deadline
Interested bidders must submit both their Technical and Financial Proposals by:
📅 5 October 2026
🕔 5:00 PM East Africa Time
⚠️ Late submissions will not be accepted.
♻️ Building a Cleaner and More Sustainable Burao
The Burao Solid Waste Recycling Facility is designed to transform waste management from a system focused mainly on collection and disposal into one that increasingly supports recycling, resource recovery, environmental protection, and economic opportunity.
Through the proposed Public-Private Partnership, Burao Municipality is seeking a capable private investor and operator that can transform municipal land and recycling equipment into a sustainable, commercially managed recycling facility.
For qualified investors, recycling businesses, waste-management companies, industrial operators, consortia, and social enterprises, this RFP presents an opportunity to participate in an important long-term environmental infrastructure project while helping build a cleaner, greener, and more resilient Burao. 🌱♻️🏗️