♻️ Wajaale Municipality Invites Investors to Develop and Operate Solid Waste Recycling Facility
Wajaale, Somaliland — September 2026
Wajaale Municipality, together with the Ministry of Local Governments and Urban Development, has officially issued a Request for Proposals (RFP) seeking qualified private-sector investors, recycling companies, waste-management operators, consortia, social enterprises, and other experienced organisations to develop, lease, operate, manage, and commercialise a new Solid Waste Recycling Facility in Wajaale 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). 🇬🇧🤝
The successful investor will enter into a 10-year Lease, Develop and Operate (LDO) Agreement with Wajaale Municipality.
📅 Key Tender Dates
Interested companies and investors should take note of the following important deadlines:
- 📢 Advertisement Date: 5 September 2026
- 🏗️ Site Visits: 12 September – 23 September 2026
- ❓ Deadline for Clarification Requests: 21 September 2026
- 🤝 Pre-Bid Meeting: 23 September 2026
- 📥 Proposal Submission Deadline: 5 October 2026 at 5:00 PM East Africa Time
- 📝 Technical Evaluation: 6–18 October 2026
- 💰 Financial Evaluation: 18–23 October 2026
- 🤝 Contract Negotiation: 31 October 2026
- 🏆 Contract Award: 5 November 2026
The RFP is issued by Wajaale Municipality and supported through the Sinaan Programme (FCDO, UK).
🏙️ Why Is Wajaale Developing a Recycling Facility?
Wajaale has experienced rapid urbanisation and population growth, resulting in a significant increase in municipal solid-waste generation.
Current waste-management systems depend heavily on collecting and disposing of waste, while recycling and resource-recovery activities remain limited.
To address this challenge, Wajaale Municipality intends to establish a modern Solid Waste Recycling Facility that will help promote:
♻️ Recycling and resource recovery
🌍 Environmental sustainability
🔄 Circular-economy development
👷 Green employment opportunities
💼 New business opportunities
🗑️ Reduced dependence on waste-disposal sites
🏙️ Improved environmental conditions across Wajaale
The Municipality has already committed significant public assets to the project.
💰 Public Assets Worth Approximately USD 195,000
Wajaale Municipality will make municipal land and recycling equipment available to the successful operator.
The public assets are estimated at:
- 🏞️ Municipal land: Approximately USD 15,000
- ⚙️ Recycling and processing equipment: Approximately USD 180,000
💵 Total estimated public asset value: USD 195,000
Ownership of the municipal land and all equipment will remain with Wajaale Municipality throughout the lease period.
The selected investor will be responsible for developing the site, operating the recycling facility, maintaining the equipment, and creating sustainable commercial markets for recovered materials.
🎯 Main Objectives of the Project
The Municipality aims to achieve several important objectives through the PPP.
These include:
- 🏭 Establishing a fully functional Solid Waste Recycling Facility.
- ♻️ Promoting recycling and circular-economy practices.
- 🗑️ Reducing the amount of waste sent to disposal sites.
- 📈 Increasing the recovery of recyclable materials.
- 👷 Creating green jobs and business opportunities.
- 🌱 Improving environmental conditions within Wajaale Municipality.
⏳ 10-Year PPP Agreement
The successful Tenderer will enter into a 10-year PPP Agreement with Wajaale Municipality.
The agreement will be subject to a review every five years.
🏗️ First 12 Months: Set-Up Period
The first 12 months following contract award will serve as a mobilisation and facility-development period known as the Set-Up Period.
During this period, the operator will:
- Develop the project site.
- Install and commission the facility.
- Prepare operational systems.
- Recruit and train staff.
- Establish supply chains and recycling markets.
✅ No lease payment will be required during the first 12 months.
Lease payments will begin from Month 13 of the agreement.
🏛️ What Will Wajaale Municipality Provide?
🏞️ 1. Municipal Land
The Municipality will provide land designated specifically for the Solid Waste Recycling Facility.
Its estimated value is approximately USD 15,000.
⚙️ 2. Recycling Equipment
The Municipality will provide recycling equipment with an estimated replacement value of approximately USD 180,000.
Full equipment specifications are contained in Annex B of the RFP.
🤝 3. Institutional Support
Wajaale Municipality will also:
- Facilitate access to the site.
- Facilitate required municipal approvals.
- Support stakeholder engagement.
- Facilitate coordination with waste-collection service providers.
🏗️ Responsibilities of the Private Investor and Operator
The successful investor will carry significant responsibility for developing and operating the facility.
At its own cost and risk, the operator must:
💰 Finance the required development
🏗️ Construct the necessary infrastructure
⚙️ Operate the facility
🔧 Maintain the facility and equipment
📊 Manage commercial operations
🌍 Ensure environmental compliance
These responsibilities apply throughout the contract period.
🏭 Site Development Requirements
The operator will be required to develop approximately:
- 200 square metres of concrete area for heavy equipment.
- An approximately 150–200 square metre open processing shed.
- Toilet and changing facilities.
Site-development works will include:
- 🚜 Site clearance
- 📐 Land levelling
- 🏗️ Earthworks and grading
- 🧱 Approximately 200 sqm of concrete flooring for heavy equipment
- 🏠 Roofing structures
- 🏭 Open processing sheds of approximately 150–200 sqm
- 🚧 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 must provide adequate infrastructure to ensure the facility operates safely and protects the surrounding environment.
This includes:
- 🌧️ Surface drainage systems
- 💦 Stormwater-management systems
- 🛡️ Pollution-containment measures
- 🚰 Wastewater-control systems
- 🔥 Fire-protection systems
- 📊 Environmental-monitoring systems
A particularly important requirement is that:
No polluted discharge should leave the facility site under normal operating conditions or during rainfall events.
⚙️ Operations and Maintenance
The successful operator will be required to manage the facility on a day-to-day basis.
Responsibilities include:
- Operating the recycling facility daily.
- Maintaining all municipal equipment.
- Recruiting and supervising facility staff.
- Implementing occupational health and safety procedures.
- Developing recycling markets.
- Maintaining operational records.
- Preparing quarterly reports.
- Preparing annual reports.
The operator will also work with a SINAAN Expert, who will provide buyer contacts for different recyclable materials and support the development of recycling markets. 🤝♻️
🔧 Technical Capacity for Recycling Equipment
The Municipality will provide the recycling equipment 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 Visits Strongly Encouraged
Potential bidders are strongly encouraged to visit the proposed project site before preparing and submitting their proposals.
Tenderers should carefully examine site conditions because failure to undertake a site visit will not relieve the successful Tenderer from responsibilities arising from actual site conditions.
Site visits are scheduled between:
📅 12 September and 23 September 2026
❓ Clarifications and Pre-Bid Meeting
All clarification requests must be submitted in writing no later than:
📅 21 September 2026
Requests should be sent to:
Procurement Committee
Wajaale Municipality
📧 Email: mmxasan100@gmail.com
A Pre-Bid Meeting is proposed for:
📅 23 September 2026
📍 Hargeisa Municipality
Interested Tenderers must submit the names of their representatives at least one day before the meeting.
⚠️ Only two participants per organisation will be permitted to attend.
📥 How Proposals Must Be Submitted
Tenderers must prepare and submit their proposal in two separate volumes:
📘 Volume I — Technical Proposal
📗 Volume II — Financial Proposal
⛔ Late submissions will not be accepted.
The final submission deadline is:
📅 5 October 2026
🕔 5:00 PM East Africa Time
📘 Technical Proposal Requirements
The Technical Proposal must contain the following forms and supporting information.
📝 Form T1 — Letter of Submission
Tenderers must provide the required formal submission letter.
🏢 Form T2 — Company Profile
The company profile should include:
- Company registration documents
- Ownership structure
- Number of years in operation
- Contact information
🏗️ Form T3 — Relevant Experience
Bidders should provide evidence 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 activities
👥 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 explain their proposed approach to:
- Facility layout
- Site construction
- Construction methodology
- Construction schedule
⚙️ Form T6 — Operations Plan
The Operations Plan should describe:
- Waste-sourcing strategy
- Sorting methodology
- Processing methodology
- Equipment-maintenance approach
🌱 Form T7 — Environmental and Social Management Plan
Tenderers must explain how they will manage:
- Environmental safeguards
- Occupational health and safety
- Gender-inclusion measures
- Community engagement
📊 Form T8 — Business Plan
Tenderers must submit a comprehensive Project Financial Model.
The assumptions used in the model must be consistent with:
- Technical information
- Cost estimates
- Financial assumptions
- Workings
- Outputs presented in the Technical Proposal
The financial model should 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 additionally provide:
👷 Estimated employment creation
💰 Financial Proposal Requirements
The Financial Proposal consists principally of two areas:
💵 Form F1 — Annual Lease Fee
Wajaale Municipality is contributing approximately USD 195,000 in public assets, consisting of:
- Municipal land valued at approximately USD 15,000
- Recycling equipment with an estimated replacement value of approximately USD 180,000
The successful operator will receive a 12-month rent-free Set-Up Period.
During that period, the operator will be responsible for completing all major development and commissioning activities.
These include:
- Land levelling
- Construction of flooring
- Roofing
- Perimeter fencing
- Security infrastructure
- Electricity connection
- Water-service connection
- Drainage systems
- Pollution-control systems
- Installation of municipal recycling equipment
- Commissioning of equipment
- Staff recruitment
- Staff training
- Testing operational systems
- Establishing supply chains
- Establishing off-take agreements
- Commencing commercial operations
✅ No Annual Lease Fee will be payable during the first 12 months.
Payments will begin from Month 13 following the Effective Date of the PPP Agreement.
📈 Annual Lease Fee Increase
To maintain the real value of the lease throughout the contract period, the Annual Lease Fee will be adjusted annually according to the PPP Agreement.
Unless otherwise agreed:
📈 The Annual Lease Fee will increase by 5% per year, compounded annually.
The adjustment begins 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
Wajaale Municipality has established the following guidance:
🔻 Minimum Acceptable Annual Lease Fee
USD 8,400 per year
🎯 Expected Competitive Lease Range
USD 15,000 – USD 25,000 per year
⚠️ Any proposal offering an annual lease fee below USD 8,400 may be considered non-responsive and may not be evaluated further.
🏗️ Form F2 — Capital Investment Commitment
Tenderers must provide detailed cost estimates for their private capital investment.
The estimates should cover:
- Site clearance and levelling
- Earthworks and grading
- Approximately 200 sqm of concrete flooring for heavy equipment
- Approximately 200 sqm open processing sheds
- Perimeter fencing and gates
- Internal circulation roads
- Security facilities
- Lighting systems
- Water-storage and supply systems
- Toilet facilities
- Changing facilities
🏆 How Proposals Will Be Evaluated
The tender uses a combined technical and financial evaluation.
The overall weighting is:
🧠 Technical Proposal — 70%
💰 Financial Proposal — 30%
The proposal receiving the highest overall combined score will be recommended for contract award.
🧠 Technical Evaluation Criteria
Technical proposals will be evaluated out of 100 points.
| Evaluation Criteria | 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
Tenderers that fail to meet the required minimum technical score may not proceed successfully through the evaluation process.
💰 Financial Evaluation Criteria
The Financial Proposal will also be evaluated out of 100 points.
The weighting will be:
| Financial Criterion | Weight |
| Annual Lease Fee Offered | 60% |
| Capital Investment Commitment | 40% |
| Total | 100% |
The objective is to identify the proposal that provides the highest overall value to Wajaale Municipality, considering both the lease payments and the level of private-sector investment.
🧮 A. Annual Lease Fee Score — 60%
The Tenderer offering the highest Annual Lease Fee will receive a score of 100 points.
All other bidders will be scored proportionately according to:
SL = 100 × (L / H)
Where:
- SL = Lease Fee Score of the proposal being evaluated
- L = Annual Lease Fee offered by the bidder
- H = Highest Annual Lease Fee offered among all responsive proposals
🏗️ B. Capital Investment Commitment Score — 40%
The Tenderer offering the highest capital investment commitment for site development and facility establishment will receive 100 points.
Other proposals will be calculated proportionately using:
SI = 100 × (I / Imax)
Where:
- SI = Capital Investment Score
- I = Capital Investment Commitment offered by the bidder
- Imax = Highest Capital Investment Commitment among all responsive proposals
📊 C. Overall Financial Score
The overall Financial Score will be calculated as follows:
Sf = (SL × 0.60) + (SI × 0.40)
Where:
- Sf = Financial Score
- SL = Lease Fee Score
- SI = Capital Investment Score
The bidder obtaining the highest Financial Score will receive a final Financial Score of 100 points, while all other proposals will be normalised proportionately.
🏆 Final Combined Score
The final ranking will combine the Technical and Financial Scores.
The formula is:
Final Score (S) = (St × 0.70) + (Sf × 0.30)
Where:
- S = Final Combined Score
- St = Technical Score
- Sf = Financial Score
The bidder obtaining the highest Final Combined Score will be ranked first.
🥇 Final Ranking and Contract Award
The proposal with the highest Final Combined Score will be recommended for contract award, subject to:
- Successful contract negotiations
- Approval by Wajaale Municipality
⚖️ What Happens in Case of a Tie?
If two or more proposals receive the same Final Combined Score, preference will be given to the bidder offering the higher Annual Lease Fee.
✅ Performance Requirements for the Successful Operator
During the contract period, the successful operator will be required to:
- 🏭 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 requirements contained in the PPP Agreement.
- 🏛️ Comply with municipal regulations.
- 🛡️ Maintain all insurance required under the PPP Agreement.
- 📋 Maintain an up-to-date asset register for municipal assets.
- 🔧 Repair or replace municipal assets damaged through operator negligence, wilful misconduct, or breach of the PPP Agreement.
- 👀 Allow Wajaale Municipality or its authorised representatives to inspect the facility and municipal assets with reasonable notice during normal business hours.
- 🔄 Comply with asset-management, maintenance, and handback requirements contained in the PPP Agreement.
🛡️ Required Insurance
The operator must maintain insurance throughout the contract period where applicable, including:
- Insurance covering municipal assets
- Third-party liability insurance
- Employer’s liability insurance
- Construction-risk insurance
📊 Key Performance Indicators — KPIs
The operator will be required to report quarterly against several performance indicators.
These include:
🗑️ Waste Management
- Quantity of waste received in tons
- Quantity of recyclable material recovered in tons
- Quantity of residual waste disposed of in tons
💵 Commercial Performance
- Revenue generated from recycling
👷 Employment and Social Impact
- Number of jobs created
- Number of informal waste collectors from whom materials are purchased
⚙️ Equipment Performance
- Percentage of equipment availability
🌍 Market Development
- Country of customers purchasing output materials
- Type of customers
- Customer sector
🌱 Environmental Performance
- Environmental compliance performance
🦺 Health and Safety
- Occupational health and safety incidents
📜 PPP Contract Conditions
The successful bidder will enter into a formal PPP Agreement with the Contracting Authority.
Among other matters, the agreement will contain provisions relating to:
🏗️ Lease and Development
⚙️ Operations and Maintenance
🌍 Environmental and Social Compliance
⚠️ Possible Grounds for Contract Termination
Wajaale Municipality reserves the right to terminate the PPP Agreement in circumstances including:
- Persistent non-performance
- Environmental violations
- Failure to make required lease payments
- Unauthorised transfer of rights
📚 Annexes and Supporting Documents
The complete RFP includes or refers to several supporting annexes.
These are:
📍 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
Tenderers are strongly encouraged to attend the Pre-Bid Meeting and undertake a Site Visit.
All annexes and relevant supporting documentation will be provided at the Pre-Bid Meeting and/or Site Visit and should be reviewed carefully before bidders submit their proposals.
🌱 A Major Opportunity for Wajaale’s Circular Economy
The proposed Solid Waste Recycling Facility represents an important opportunity to strengthen Wajaale’s waste-management system while creating economic value from materials that would otherwise be discarded.
Through the PPP arrangement, the Municipality is combining significant public assets with private-sector expertise, investment, and commercial management.
The project has the potential to:
♻️ Increase recycling rates
🌍 Improve environmental conditions
👷 Create green employment
💼 Support recycling businesses
🤝 Connect collectors with formal recycling markets
🏭 Expand local waste-processing capacity
🗑️ Reduce pressure on disposal sites
🔄 Strengthen the circular economy in Wajaale
For experienced waste-management companies, recyclers, industrial operators, investors, social enterprises, and suitable consortia, this RFP presents a significant opportunity to participate in the development and long-term operation of an important municipal environmental asset.
📢 Interested in Applying?
Qualified companies and organisations are encouraged to review the full tender requirements, attend the scheduled site visit and pre-bid meeting, and prepare both their Technical Proposal and Financial Proposal carefully.
⏰ Final Proposal Deadline
📅 5 October 2026
🕔 5:00 PM East Africa Time
❓ Clarification Deadline
📅 21 September 2026
📧 Clarification Contact
Procurement Committee
Wajaale Municipality
📩 mmxasan100@gmail.com
🤝 Pre-Bid Meeting
📅 23 September 2026
📍 Hargeisa Municipality
Interested organisations should submit the names of their representatives at least one day in advance, with a maximum of two representatives per organisation.
♻️ Wajaale’s Waste Can Become a Resource
With approximately USD 195,000 in municipal land and recycling equipment already committed, a 10-year PPP opportunity, a 12-month rent-free development period, and a framework designed to attract private-sector investment, the Wajaale Solid Waste Recycling Facility has the potential to become an important step toward cleaner cities, stronger recycling markets, greener jobs, and a more sustainable future. 🌍♻️🤝