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Tag: Visionscape

  • Lagos retains Fitch’s B+ rating despite Visionscape payments default

    GLOBAL credit rating agency Fitch Ratings has affirmed the positive economic ratings of Lagos State despite the missed contracted services payment by Visionscape Sanitation Solutions.

    The waste management agreement between the state and the waste managers did not work.

    In a statement,  the global credit rating agency  said the state’s B+/(AA+(ngn)/ ratings remained stable and unaffected by the default of the SPV Municipality Waste Management Contractors Limited (MWMCL) led by Visionscape, occasioned by the halt of the said contract and the subsequent resolution of the House of Assembly.

    SPV is a private consortium led by Visionscape Sanitation Solutions (Visionscape), a company mandated to manage Lagos’ waste collection and disposal.

    Early last month, the SPV was reported to have missed the semi-annual principal and coupon payments for about N800 million on the N4.85 billion tranche under MWMCL’s N50 billion medium term note programme.

    The bond was issued by MWMCL reportedly to raise funds to purchase recycling trucks and equipment, linking debt service to the proceeds coming from Lagos for the implementation of the waste recycling contract.

    Some market participants had deemed MWMCL’s default to imply also the default of Lagos, given the state’s irrevocable standing payment order (ISPO) whereby a stream of its own internally generated revenue was remitted to the SPV account for debt servicing.

    But the agency, in its opinion, said the ISPO, and similar arrangements in other countries, is a mechanism enhancing the predictability of payment flows from an administration, potentially enabling it to address liquidity stress by prioritizing the payment of certain liabilities.

    However, such a mechanism normally falls short of the senior, unconditional, and irrevocable features qualifying it as a solvency guarantee, that is, a guarantee of timely repayment of long-term financial liabilities, such as bonds and loans, over extended periods.

    “In short, the ISPO is seen as a commitment to set aside resources for debt service, making it a risk-mitigating factor in case of liquidity stress by an administration rather than a credit enhancement.

    “Fitch does not rate the defaulted bond and believes that it would not have been able to rate the state’s commitment towards Visionscape – underpinning the bond debt servicing – under its Public-Sector Counter-party Obligations in PPP Transactions Criteria. Fitch does not rate commercial liabilities, i. e. those arising from service provision, such as waste fees/utility bills.”

    Giving further details, Fitch said when the payments of commercial nature are recurrent amid the need to procure the service of an asset otherwise purchasable/funded via borrowing (that is hospital, energy, motorway, public transport infrastructure), Fitch tests the rate-ability of the commitment and cautions that the IGR of the grantor, Lagos State in this case, does not address the default risk on commercial, or quasi-debt arrangements.

    The agency added that since the commitment underlying the MWMCL bond may meet the rate-ability tests under its PPP counter-party obligation criteria as Lagos lacks the control of the asset, and that it is the grantee (Visionscape) that appears to have the option to put to the state the waste recycling trucks in case of contract termination, rather than the state having the control that will enable it to operate them at the end of the PPP arrangement if it so chooses, then the State Government could not be held liable.

    “Lagos reportedly committed itself to pay for a service but those payments were discontinued in 2018 once the waste collection halted and the State’s House of Assembly issued a subsequent resolution.

    “Under Fitch’s criteria, Lagos’ ratings are not impacted because the defaulted debt is not Lagos’ direct debt, as well as because its multi-annual commitment towards Visionscape is unlikely to qualify as a PPP counter-party obligation. This would make the credit quality of the bond and its issuer detached from that of Lagos,” Fitch said in the statement.

  • Analysts plead time for Visionscape

    Analysts have urged the Lagos State Government to allow Visionscape Sanitation Solutions more time to prove capacity in its municipality waste management contract.

    They said this is to implement the new integrated waste management policy encapsulated in the Cleaner Lagos Initiative (CLI).

    The scheme was designed to manage and dispose over 13,000 tons of waste generated daily in the state and provide a proactive response to containing the growing rate of waste generated by per persons, which is expected to increase from 1.2kg to 1.42kg in the next 15 years.

    On ‘TVC This Morning’, a television phone-in programme focused on social analysis, which was aired yesterday, Comrade Nelson Ekujumi, a public affairs analyst, and consultant economist, Joseph Egbeyindo, discussed the cleanliness of Lagos State in the context of the ‘Cleaner Lagos Initiative’.

    They said the mounting heaps of dirt across the state are attributable to the clog in the relationship among operators in the waste management ecosystem, not lack of capacity on the part of Visionscape Sanitation Solution.

    According to Egbeyindo, “there is fear among PSP operators that Visionscape has come to take away their means of livelihood, just as the Lagos State Waste Management Authority (LAWMA) holds the view that the newly appointed sanitation contractor has come to bite into its pie.”

  • ‘Visionscape contracted by govt to provide waste collection services’

    Visionscape Sanitation Solutions is contracted by the Lagos State government to provide residential solid waste management collection services, the Chief Executive Officer (CEO), John Irvine, has said.

    Irvine, responding to the House of Assembly directive to the Private Sector Partnership (PSP) operators to go back to refuse packing, said: “We are aware of statements being attributed to the House of Assembly concerning cancellation of our service contract with the Lagos State government.

    “We would like to believe that there is some misinterpretation of the statements being circulated, despite our continued efforts in meeting the performance matrices of our valid and subsisting contract.

    “We will nonetheless continue to fulfil the terms of our service contract in the face of a sustained negative sponsored media campaign, as well as persistent and systematic sabotage of our efforts and our assets.

    “We remain open to dialogue, levelling the competitive playing field and participating in a more inclusive process with stakeholders in the environment.”

     

  • Visionscape denies unlawful sack

    Visionscape has denied allegations of unlawful termination of employees’ job.

    Visionscape, in a counter claim and statement of defence filed in reaction to a suit by some ex-employees, accused the plaintiffs of making various defamatory statements to disparage it.

    “These defamatory statements made by the defendants to counterclaim are to their knowledge untrue, derogatory and totally unnecessary.

    “The said ex-employees were hired for a fixed term of one year only, to supervise the street sweepers within their areas of designation.

    “However, sometime in March 2018, the scope of Visionscape’s business activities was reviewed. As such, street sweeping operations were removed from scope of work of Visionscape and same was transferred to the Lagos State Government.

    “Consequently, the positions of the ex-employees became redundant. Their contracts were terminated in accordance with their contracts of employment. They were fully remunerated as contained in their respective contracts of employment and were given all their entitlements. No outstanding emoluments are due to them.

    “At no time were they assaulted in any manner whatsoever by any Visionscape staff, nor were their human rights violated,” the company said.

    Azuka Offiah, Visionscape legal representative said: “We take defamation very seriously and we have filed an order directing these individuals to pay damages for the vexatious and malicious statements aired on national and international television stations.

    “Furthermore, our order instructs these individuals to cease and desist from making further slanderous and false allegations through the media and in any other manner howsoever against Visionscape.”

     

  • What we’re doing is long- term –CEO Visionscape

    Chief Executive Officer, Visionscape Sanitation Solution, John Irvine, in this interview with Yetunde Oladeinde, speaks on the organisation’s mandate vis-à-vis the Lagos waste challenge, the experience in the last 18 months, achievements and the plan to develop a sustainable waste management system in the state.

    TELL us the vision of Visionscape; what are your core roles?

    Firstly, Visionscape Sanitation Services is an environmental utility company. So, it is not just about sanitation services. We have businesses in the key continents across UK, Europe, Asia, the Middle East and we provide services that range from water management, power generation from solid waste and plastic recycling. So, we are almost a facility company.

    Can you clarify on the players in the Cleaner Lagos Initiative?

    Certainly. Obviously, there are numerous stakeholders and we are just a small cup in a larger platform. Our mandate within the Cleaner Lagos Initiative (CLI) is to manage the door to door residential waste collection and subsequently the disposal and diversification of the waste. What I mean by disposal and diversification is to put a sustainable plan in place for the future. Not just to collect the waste, because anybody can collect the waste. You and I can collect the waste. It is what we do to the waste that matters. So, our mandate is to collect that waste and develop a strategy in place. We have the PSP’s and the WCO’s, who help us in collecting the waste. At the back of that you have the MOE (Ministry of Environment), they are in charge of the CSW’s (Community Sanitation Workers); then you have the state environmental sanitation corps, who are supposed to be the enforcement agency, along with Lagos State Government and of course, the state environmental agencies, itself. So, our client is the state and the state is our client; we are all working together, ultimately to ensure the project works for CLI.

    Is it true that VSS has taken over from the other stakeholders in the sector? What is the situation?

    Let me clarify that; there have been some misconceptions in the last 18 months. As a company, we responded to the international tender alongside so many other international companies. We were very fortunate to be shortlisted and awarded the project by the state government. At no point was it ever intended to displace or replace those participants from the previous PSPs. However, because of the novelty of this project and the high volume of Lagosians, we were asked to change the pattern slightly and concentrate on infrastructure. That then gave us the opportunity to reach out and embrace the former PSP’s to come and assist us and work as CWO’s. There is enough room in the chain for everybody to deliver this.

    The population is huge; how can Lagos, like other emerging markets, have a sustainable waste management strategy?

    There is really no difference. Just this morning, the same question popped up. In every government department and strategies, you find that waste, no matter what markets, would always be the bottom half. That is because there is health, there is education; I am not saying it is not important but priorities have to take place. And the only difference between Lagos and other emerging markets is the huge influx of population. We didn’t realise how much of a population was here. Yes, we have the figures; people say the figures are between 24 or 25 million and that really makes no difference because that population is increasing daily. But you can’t invest in infrastructure daily, it is not possible. There must be some giving points. That is why the state decided to bring the CLI to address the environmental issues.

    How do you intend to scale up infrastructure to meet with these demands? How long would this take?

    Our original mandate was to collect the waste generation from door to door. When we started that project, it became apparently clear, very quickly, that even though our mandate entitled us to take over the concession on some infrastructure, our internal plan with the government to start developing infrastructure wasn’t going to be quick enough. That was when we reached out to the WCO’s to assist us, so we could develop that infrastructure. Mind you, this is not just for the next 5 or 6 years, what we are doing now is for the next 25 years  and I think that the people need to understand that this is not something we can do overnight. There has to be a process. What we don’t want to put in place is something that would fail in 15 years time. It is for the next generation and that is the process that we are dealing with at the moment.

    What does your monitoring and intervention team do?

    We reached out to the former PSPs, who have been reassessed by the government and renamed WCO’s, and they work for us directly. So, we pay these WCO’s and we cover the whole state; from Badagry to Epe, every LCDA and ward is being covered. If you look at the focus of our work, what happens is that when the WCO’s get to a place, let’s say Apapa and his vehicle breaks down and a client phones up the MOE (Ministry of Environment) that his waste has not been cleared today, that is where they come in; our M and I team would come to Apapa to evacuate the waste, until that vehicle is put in place. Not just that, we do what is called illegal dumpsites. Between August last year and now, we have done an excess of 20,000 of such sites and the problem we have is with enforcement. This is where the state government comes in for enforcement through the MOE and of course, the sanitation corps.

    What is the ECO Park Project in Epe all about?

    Previously, what happened was that these dumpsites were all over the state. It is not that they have been mismanaged, but because of the high volume of residence in Lagos, the waste generated is faster than the existing system. So what we decided to do is bring a segregated programme. What happens is that no waste is treated unless it gets to Epe. We collect from Lagos and it is taken to the TLS (Transfer Loading System), moved by the larger trucks. When the waste gets to Epe, it is segregated into paper, plastics, glass and metal. The real trash has no environmental value and it is then buried in a different way. We construct an engineered hole in the ground that allows us to control the bad water and also control the methane gas which can be used for irrigation. We can change that to green water and use it for irrigation; we can even clean it further and make it into potable drinking water; same for the gas. We can harness the gas and turn it to fuel. If we are just dumping the waste, it can’t last more than six years; so we are putting a strategy in place that will last for generations. That, ultimately, is the zeal and that is what we hope to do.

    What is the future of sustainable waste management in Lagos State?

    Ultimately, the future plan is to have a cohesive transparent system. What I mean by that is that you and I as residents need to confirm that when we dispose our garbage, it is being treated to show that nothing harmful would come from it. So, the future system would come from that knowledge that we use today. We have invested in our trucks, it’s big and we don’t need to have ten trucks all over the place. Where the economy comes in is that we are employing thousands and that means that they would have more disposable income. That improves the GDP for Lagos state and that is where economic development comes in. They in turn contribute to the taxes of the state government.

    How do you contribute to local content, empowerment and capacity building?

    As a CEO my job is not just to run a contract here. I have other duties round the globe. I have a moral obligation to make an impact. You may come back in six months and find a Lagosian in my seat. We need to empower the people to understand the commitment that the state government has done. We want to deliver these aspirations and it is important to embrace the Lagosian and let them understand what we are doing. So, our management style is clear communication. That is why I am willing to talk to people myself; I go out to places; marketplace, schools, to make people know that we are here to deliver something special and we are in the process of doing that.

    The plastic waste is a serious problem, how do you intend to tackle that?

    Not just here. It is a global problem. Look around to sister African countries.

  • Visionscape explains sack of 18 area managers

    Visionscape Sanitation Solutions (VSS) Ltd. on Saturday attributed the termination of appointment of 18 area managers of the organisation on April 13, 2018, to business restructuring.

    The Chief Executive Officer of VSS, Mr John Irvine, gave the clarification in a statement in Lagos, explaining that there was a cohesive change in the scope of the company’s contract, and in turn, its modus operandi.

    Irvine said that the organisation had keen emphasis on performance and sustainability of the business, in the current operating environment.

    He said that the waste management company evaluated every employee in all functions of the business, using individual performance assessments as a basis of decision-making.

    Read Also: Visionscape  upgrades waste stations

    According to him, this methodology highlights the core individuals that needs to be retained, considering the resizing and right-sizing of the business.

    “Unfortunately, in tandem, some employees were affected by the process. We reiterate that the decision to terminate the area managers’ employment was purely a business decision.

    “This is as management reviewed the manpower requirements against the backdrop of the delivery of our current scope,” the chief executive officer said.

    Irvine said that all salaries, entitlements and emoluments due to the 18 workers upon termination of employment had been paid in full.

  • Visionscape: we don’t owe salaries

    •’Enquiries on CWS workers’ salaries should be directed to MoE’

    Visionscape Sanitation Solutions (VSS), an environmental firm, has stated categorically that it is not owing any staff salaries, stating that any enquiry on the issue of salaries raised by protesting Community Sanitation Workers (CWS’s) should be directed to the Lagos State Ministry of the Environment.

    CWS workers had embarked on a protest to the office of the Lagos State Governor, Alausa, Ikeja, on Monday over alleged non-payment of two months’ salaries by the environmental firm. The company denied the claim, calling it totally false and unfounded.

    In a statement issued by the CEO of VSS, John Irvine, the company said, “Whilst we cannot ascertain the information that has been published, we can confirm that no Visionscape staff salaries have ever been compromised in any way.”

    The company reiterated that all enquiries regarding the CSW should be directed to the Ministry of Environment/ Public Utility Monitoring Assurance Unit (PUMAU).

    Irvine said that the company continues to guarantee the complete safety and security of its employees with the highest levels of protection and equipment.

    “We remain committed to working with all stakeholders as we carry out our respective roles and responsibilities and will continue to support the Cleaner Lagos Initiative”, he assured.

  • Our staff not involved in Ikeja’s protest- Visionscape

    A waste management company, Visionscape Sanitation Solutions (VSS), says it workers were not involved in the Monday protest at the Lagos State Government (LASG) Secretariat, Ikeja.

    Mr John Irvine, the Chief Executive Officer of the company, said on Tuesday in Lagos that the company had always met its obligation to the workers.

    The News Agency of Nigeria (NAN) reports that hundreds of workers under the Cleaner Lagos Initiative (CLI) had on Monday protested over alleged discrepancies in their salaries.

    The workers also said that since they started work some months ago they had not been given identity cards and employment letters.

    Majority of the protesters were those in the Community Sanitation Workers (CSW) scheme under VSS.

    Read Also:‘Cleaner Lagos’ workers protest unpaid salaries

    Irvine said: “While we cannot ascertain the information that has been published, we can confirm that no Visionscape staff salaries had been compromised in any way.

    ”Enquiries regarding CSW must be directed to the state Ministry of Environment/Public Utility Monitoring Assurance Unit (PUMAU).”

    The company CEO said that Visionscape would continue to guarantee the complete safety and security of its employees with the highest levels of protection and equipment.

    Irvine said that the company remained committed to working with all stakeholders.

    According to him, Visionscape will carry out its respective roles and responsibilities and it will continue to support the Cleaner Lagos Initiative.

  • Visionscape upgrades waste stations

    Visionscape Sanitation Solutions (VSS) yesterday said it has closed two of its Transfer Loading Stations (TLS) in Lagos for upgrade to accelerate waste management.

    Its Chief Executive Officer, Mr John Irvine, in a statement said the shut stations were located around Murtala Muhammed Airport, Ikeja and in Agege.

    The News Agency of Nigeria (NAN) reports that a TLS is a building or processing site for the temporary storage of waste before taken to an engineered permanent site.

    It is an integral part of the waste management treatment infrastructure chain

    Irvine said the company was aware of the recent complaints about the resurgence of waste across the state, especially in Lagos West axis.

    According to him, the acceleration of waste infrastructure has made it necessary to temporarily close two transfer loading stations in Lagos West axis for upgrade and refurbishment of the facilities.

    “As a result, there is a backlog of waste, as Waste Collection Operators experience a high turn-around time.

    “This underscores the importance of infrastructure to the waste management system and our role remains the provision of efficient facilities,” Irvine said.

  • Visionscape sensitises residents on pollution

    International environmental utility firm, Visionscape Sanitation Solutions has reiterated its commitment to the fight against plastic pollution, following a community sensitisation organised to mark the United Nations 2018 World Environment Day, in partnership with a local cement manufacturer.

    The sensitisation, themed “Beat Plastic Pollution”, was held in Lagos Island West Local Community Development Area (LCDA), Lagos State. Participants consisted of market leaders, representatives of government agencies, key environmental players in the sector.

    The Operations Manager, Shola Taiwo, said: “Curbing plastic pollution is a collective effort. There is something we can all do, and it will be to the benefit of everyone.” Visionscape urged residents to reduce their use of plastic and rubber materials to fight plastic pollution.

    he World Environment Day, celebrated June 5 every year, is dedicated to address the issues facing the environment. This year’s theme, “Beat Plastic Pollution”, focuses on reducing plastic and rubber pollution in the environment.

    The Visionscape Group is a multifaceted environmental utility conglomerate providing innovative solutions across the waste management value chain for diverse industries across the world. Each of its subsidiaries specialises in providing products and services in key sectors.