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Shanks wins multi-million pound East London Waste contract

Shanks waste management company has beaten rival Thames Waste to win East London Waste Authority's disposal contract which is worth around 500 million over the next 25 years.

The announcement this morning concludes a two-year tendering process and the contract, which is expected to start on July 1 2002, is worth around 25 million a year. ELWA met on Monday to discuss the awarding of the contract and Alan Dawson, of the authority, said: “We met to discuss some issues that we needed to clarify before we could formally appoint Shanks as the approved bidder. These issues were resolved on Monday.”

The contract will reflect ELWA's Integrated Waste Management Strategy, which has been developed to deal with east London's waste for the next 25 years and will focus on developing recycling, organic treatments and energy from waste.

ELWA hopes to develop a strong partnership with Shanks and the contract is being financed by the four boroughs of Barking & Dagenham, Havering, Newham and Redbridge which make up the authority. ELWA is also getting assistance through a government Public Finance Initiative (PFI). The PFI funding is expected to be worth over 47million over the time of the contract and the overall partnership is expected to save a total of 190million.

The population in the boroughs is around 850,000 and the waste authority disposes of over 500,000 tonnes of waste each year.

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