We are considering two strong bids that we believe can help us achieve EU and UK government targets, increase recycling and reduce the amount of waste we send to landfill
Cllr Graham Isherwood, Wakefield
Southampton-based VT Group will go head-to-head with the other remaining bidder – waste management company Waste Recycling Group (WRG) – for the Wakefield Metropolitan District Council contract.
Council waste chiefs cut the contenders to two this week, when following “detailed evaluation”, it dropped Veolia Environmental Services from the shortlist. The preferred bidder is expected to be announced in October with the contract due to begin in May 2008.
Councillor Graham Isherwood, Wakefield's cabinet member for environment, said: “This is a very exciting time as we are nearing the end of the process to decide the future of waste management across the district.
“We are considering two strong bids that we believe can help us achieve EU and UK government targets, increase recycling and reduce the amount of waste we send to landfill,” he added.
Finance
The 25-year agreement will cost around £850 million and Wakefield has already secured £33 million Private Finance Initiative (PFI) credits from Defra. For this cash to be approved, the council had to submit an outline business case which proposed a mechanical biological treatment (MBT) plant and an anaerobic digester. The facility will treat 120,000 tonnes of material annually by 2010 and 156,000 by 2030.
WRG
Northampton-based Waste Recycling Group operates household waste recycling centres, composting facilities, and waste treatment plants across the UK. This includes a recent deal with Wrexham council to run a PFI-funded materials recycling facility and composter in Wales (see letsrecycle.com story).
VT Group
The VT Group decided to start bidding for local authority contracts after viewing it as a “potential source of new business”. The company said it became aware that Defra and the Office of Fair Trading (OFT) were “concerned at the lack of competition in the waste market, in particular the provision of new processing facilities” and wanted to encourage new entrants.
The firm believes its mix of skills including “project management skills, PFI experience, systems integration experience and proven ability to work with government” will benefit the waste management industry.
It also believes it can draw expertise from across VT Group's range of services which includes education and specialist vehicle provision.
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