German firm MVV in line for first UK contract

_{^{By Chris Sloley}} 

The Partnership – which is made up of Devon county council, Plymouth city council and Torbay council – opted for MVV Umwelt ahead of Taunton-based firm Viridor, with both firms having submitted bids based on residual waste treatment by energy-from-waste incineration.

The preferred bidder status marks the most significant progress in the UK for MVV to date, having previously been named in the final two for Staffordshire county council's PFI contract, only to lose out to Veolia Environmental Services in July 2010.

Under the 25-year deal with the South West Devon Waste Partnership, MVV intends to develop a facility capable of handling the three councils' combined 200,000 tonnes-a-year of residual waste at a site at the North Yard in Devonport Naval Services, Plymouth.

Commenting on the preferred bidder status, Paul Carey, managing director of MVV Environment Devonport – a subsidiary of MVV Umwelt, said: “We are very pleased that, after a rigorous selection process, the Partnership has chosen MVV to help it manage the residual waste from Plymouth, Devon and Torbay and use it as a valuable resource.

Mr Carey added that the firm would now be working on a full planning application, including an environmental impact assessment, which it hoped to submit to Plymouth city council – the local planning authority – in spring 2011. MVV intends to carry out public consultations on the proposal in February.

SWDWP 

The three-council partnership, known as the SWDWP, received £95 million in PFI funding from the government in October 2008 to help towards the capital costs of the project (see letsrecycle.com story). The contract is worth around £796 million.

Commenting on the announcement of MVV as preferred bidder, councillor Dave Butt, chair of the SWDWP, said: “After careful consideration, it was clear that MVV represented the best possible option for the partnership providing with good value for money with significant environmental benefits.

“They are an experienced company with an excellent environmental and safety track record gained operating many other facilities across the continent, so we are confident they will provide a highly efficient sustainable long term solution to meet our ongoing needs.”

Viridor

Reacting to the announcement, Viridor expressed disappointment at being overlooked for the waste management deal. However, it has vowed to assess the possibility of developing an energy-from-waste facility at its New England Quarry site regardless of the Partnership's decision.

A spokeswoman said: “Viridor is naturally disappointed about the decision, as we worked hard putting together what we believed to be a deliverable and cost effective bid.

“We remain confident that there is still an evident market for our New England Quarry development, and that it is a suitable location for such a facility – as clearly identified in the Waste Local Plan. We will now review our options for the site and look forward to the outcome of our planning application in the coming months.”

Viridor and MVV were left as the two remaining bidders for the contract in January 2010 after SITA UK, which had also been shortlisted, opted to withdraw from the procurement process (see letsrecycle.com story).