The county and city councils issued a Prior Information Notice (PIN) on the £900 million waste management contract last week, in preparation for the potential early end of the contract. The notice is intended to sound out interest from the private sector in taking over the 27-year deal, which runs until 2042.
The PIN follows the revelation six weeks ago, in a statement within Renewi’s 2018/19 annual results, that it had provided for the “complete termination” of the contract with the councils due to the ongoing delays to the facility (see letsrecycle.com story).
The current contract is with Resource Recovery Solutions (Derbyshire) Ltd (RRS) – a partnership between infrastructure firm Interserve and waste management company Renewi.
The contract with RRS was signed in 2009 but didn’t reach financial close until 2014. It includes managing Derby’s recycling centres, providing five transfer stations and building and running a 190,000 tonne incinerator in Sinfin, Derby.
Derby city council initially refused planning permission for the plant in 2009, but it was given the go ahead by the planning inspectorate in 2012 (see letsrecycle.com story).
However the plant – which was due to open in 2017 – has faced continued challenges in development and the council in April 2019 called on its financial backers to intervene to ‘secure the future’ of the delayed facility (see letsrecycle.com story).
‘Work closely’
Now, the councils say that as RRS has been unable to resolve ongoing issues with the plant, it will explore the potential for a new contractor to take over the deal.
Derby council’s leader Chris Poulter, said: “The PIN notice issued to the waste industry is all part of our planning to find a contractor with the necessary experience, technical competence and financial backing to deliver this waste management contract if the current contract with RRS is brought to an end.”
“The PIN notice issued to the waste industry is all part of our planning to find a contractor with the necessary experience, technical competence and financial backing to deliver this waste management contract if the current contract with RRS is brought to an end.”
“By issuing the PIN notice, we’re inviting interest from companies who could potentially be interested in delivering our waste management contract into the long term.
“If the contract with RRS does come to an end, contingency plans have been drawn-up to make sure existing services can continue.”
‘Certainty’
Commenting, Councillor Simon Spencer, deputy leader of Derbyshire county council, said: “This contract was established to give us certainty about how we would deal with Derby and Derbyshire’s waste in the future and how much it would cost.
“The waste treatment facility is central to our plans and we remain committed to getting it up and running as soon as possible.”
A spokesperson from Renewi said the company has declined to comment.
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