The partnership revealed yesterday (May 26) that it had whittled down the list of companies bidding to secure what is one of Wales' largest ever waste treatment deals from 14 firms who submitted a Pre-Qualification Questionnaire when the contract was formally advertised in November 2009 (see letsrecycle.com story).
While the Welsh Assembly Government (WAG) has proposed a cap on the total amount of Wales' municipal waste that can be treated using incineration (see letsrecycle.com story), and the 'Prosiect Gwyrdd' – or Project Green – partnership has stressed that it is both technology and site neutral, the shortlist features several names with specific energy-from-waste incineration experience.
The shortlist, in full, is:
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Covanta Energy Ltd;
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MVV Umwelt Gmbh;
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Shanks Group Plc;
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SITA UK Ltd;
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Urbaser Ltd;
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Veolia ES Aurora Ltd;
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Viridor Waste Management Ltd;
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Waste Recycling Group Ltd.
Of the firms shortlisted, Waste Recycling Group has already unveiled plans for how it would plan to deliver the contract if it successful, signing an exclusivity agreement with a Newport chemicals company last year which would allow it to build an energy-from-waste (EfW) facility on its headquarters in the city (see letsrecycle.com story).
And, Viridor has said it plans to deal with the waste at a proposed 150,000 tonne-a-year capacity EfW facility at Trident Park in Cardiff – although the company's planning application for the project was rejected by Cardiff council in July 2009 (see letsrecycle.com story).
The 'Prosiect Gwyrdd' partnership has provided an optional site, at Tatton Road in Newport, for bidders to consider using, in an attempt to increase competition for the contract.
Progress
Prosiect Gwyrdd is keen to ensure the process to deliver a solution to residual waste is as competitive as possible
Cllr Mark Stephens, chair, Prosiect Gwyrdd joint committee
Commenting on the progress made in the procurement process, councillor Mark Stephens, chair of the joint committee governing the project, said: “”The partner councils are happy with the interest from the market. Obviously Prosiect Gwyrdd is keen to ensure the process to deliver a solution to residual waste is as competitive as possible.
“The partnership is technology neutral, and has assessed all compliant bids made against agreed criteria.”
The project is being procured alongside the WAG's proposed targets for recycling which would involve all Welsh local authorities having to reach a 70% recycling rate by 2024/25.
And, Cllr Stephens stressed that recycling was still important to the councils: “”Sending the majority of waste to landfill has to stop. Each of the partner authorities is continuing to recycle and compost as much waste as possible.
“Prosiect Gwyrdd will deliver a solution for the remaining waste, maximizing this waste as a resource and diverting as much waste from landfill as possible.”
Funding
The WAG has committed to provide funding for the project by contributing 25% of the future gate fee for the facility, with a limit initially set at up to £7.8 million a year (see letsrecycle.com story), but in May 2009, increased to £9.124 million.
This amount is based on the estimated cost of providing the facility, and the Prosiect Gwyrdd partnership noted that it would vary in line with the actual costs when the final business case is approved.
Process
The next stage of the procurement process itself will involve the eight shortlisted bidders being asked to submit outline solutions for evaluation as the 'Competitive Dialogue' process begins in earnest.
The partnership explained that each bidder can submit two bids each, allowing them to vary the technology or site choice being put forward.
It is expected that the dialogue process will be concluded by summer 2011, with the aim of naming a preferred bidder in autumn 2011 and finalising the contract in 2012.
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