Delhi needs quick world class sanitation solutions. Will the innovative EOI approach suggested enable Delhi to get great sanitation solutions for its citizens and make money instead of spending a lot of money and yet not providing acceptable sanitation solutions. Will sanitation solution providers view this as big business opportunity , compete and invest. In telecom they did.

1. Innovative Expression of interest (EOI)
Introduction
Delhi needs sanitation solutions fast and traditional ways of appointing expert
committees, tendering etc. have shown themselves to be slow and open to
corruption. The Delhi metro was built with traditional methods while the telecom
industry was built with innovative methods which are close to what I am suggesting.
The key advantages of the innovative EOI approach I am suggesting are outlined
below
• Zero cost to government thus zero to minimal corruption
• No mandatory restrictions on entrepreneurs and innovators
• Clear guidelines for selection
• Quick time to market or severe penalties
• Only serious companies who see providing sanitation solutions to Delhi, then
India and then the world will bid
• Single point accountability
What would the innovative EOI approach look like?
A first cut on the innovative EOI approach
MCD is interested in innovative and integrated sanitation solutions for the city of
Delhi. MCD believes that providing sanitation solutions could be a large business
opportunity for providers and plans to select upto five acceptable solutions to be tried
out in five of the 272 wards in Delhi.
The lead service provider (LSP) may use partner firms to provide the integrated
solution but it must take full ownership of delivering the solution. The LSP must pass
financial due diligence and be able to provide performance guarantees from a bank.
Some LSP’s will be chosen to scale their solutions to the entire city of Delhi. In case
the LSP does not make the cut it must agree to transition to the LSP selected at its
own cost. MCD will not provide any kind of financial support to the LSP or require it
to pay a licensing fee or share revenues with MCD for the pilot ward. However, when
the solution scales across Delhi licensing fees or revenue sharing may apply. In
summary MCD is asking for EOI’s from LSP’s who want an opportunity to
demonstrate their capability to serve the entire city of Delhi. If they can serve Delhi it
is possible they can serve India and many other countries. The cost of demonstrating
the solution should not be very much for the LSP as it will be restricted to one ward

2. and the LSP should be able to view this cost as an acceptable business
development cost.
Here are a few guidelines for LSP as they think about submitting an EOI
• Time is of essence so solutions that have a quicker time to going fully live will
be given preference. Solutions that will go live post September 30,2011 are
unlikely to be considered
• Delhi wishes as far as possible to leapfrog other cities since it has the benefit
of learning from others
• LSP’s are free to suggest solutions that may require residents, shops and
establishments, institutions to pay fees, follow rules or get fined etc. but
solutions that impose the least burdens on users are likely to get preference
• The choice of the ward is upto the LSP’s but since the aim is to cater to the
diversity of Delhi LSP’s are advised to select a wards that has a good mix
• LSP’s should also advise what they need from MCD including getting all
government clearances, land for putting up plants etc. Again solutions that
require lesser coordination and impose the least burden will be given
preference.
• The foreign ownership limit in the LSP will be a maximum of 49% and
management control should not be in foreign hands
• A group of residents headed by xxxxxxx will act as pro bono consultants and
will act as a bridge between MCD and LSP’s to ensure quick decisions and
turnaround
Xxxxx can be contacted on xxxxx for any clarifications/suggestionsNext steps and
timelines
• Deadline for EOI- March 31, 2011 – Rs 5lacs ( 500,000) required as
refundable earnest money
• Deadline for proposal to be accepted – June 30,2011. If proposal is accepted
earnest money will be refunded without interest
• Deadline for proposals for the city of Delhi- Dec 30,2011
• Deadline for Awards for the city of Delhi- March 31,2011
• Preferred deadline for completing migration – March 31, 2012