The extension of the contract is worth £772,000 per annum, a 3.5% increase, for “circa 40,000 tonnes” of material per year. It is due to end in December 2022 with the option to extend for a further two periods of up to 12 months.
FCC saw off a bid from Pattersons for the tender, according to Glasgow council minutes.
FCC was first awarded the contract in 2013, with material taken to its Greengairs landfill site in North Lanarkshire.
GRREC
The contract was due to end this year in order to meet the Scottish government’s initial 2021 landfill ban, which has now been pushed back to 2025.
The council says it will now work with Viridor to assess feasible options to expand the GRREC’s capacity beyond 200,000 tonnes of residual waste per annum.
“However it is anticipated that this will take several years to install and commission the equipment and optimise the process to achieve the additional throughput,” a report which went before the council last week said.
It added: “If implemented, the GRREC will provide a treatment facility for the landfilled material.”
The new contract will result in an annual price increase of 3.5% based on the current contract price, Glasgow says, although it spent £1,060,992 last year due to “higher tonnages”.
Viridor
Glasgow awarded Viridor a £250 million contract in 2012, to treat between 175,000 and 200,000 tonnes of its waste per year.
As part of the deal, Viridor was responsible for financing the regeneration of the GRREC. This was opened in August 2019 (see letsrecyle.com story)
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