The contract, first signed in 2015, was due to expire in May 2025.
However, in the tender notice published last week, the council outlined that it has extended its existing deal due to “ongoing uncertainty around the implementation of the recently announced Government waste reforms”.
This procurement shall extend the existing services to be performed by Urbaser for a further ten months, to 31 March 2026, with an option to extend for an additional 12 months until 1 June 2027 if required.
The deal has been valued at £2.7 million it it runs until 2027.
Bins
Burnley borough council serves around 90,000 residents and recorded a 31.5% recycling rate in 2022/23.
Currently recycling is collected across the Borough as a fortnightly collection of recycling in 55l containers for glass, cans and plastics and white sacks for paper and card and a separate chargeable garden waste service.
These arrangements will continue under the existing contract.
Disposal
Burnley borough council also noted in the tender document that there is “disposal uncertainty” as Lancashire county council, as the disposal authority, has advised collection authorities that the existing
disposal arrangements (running to landfill) will cease on 1 April 2026.
The Borough Council is therefore “required to seek their own disposal arrangements”. As such, the extension, which also includes haulage, is required to align these two significant service changes.
Acquisition
Urbaser’s retention of the contract comes after Urbaser’s affiliate in the UK was acquired by FCC Environmental for an estimated £398 million (see letsrecycle.com story)
The deal, which is expected to be completed in the second quarter of 2024, will see all of Urbaser’s UK contracts and waste facilities transfer to FCC Environment.
This includes facilities of composting, material recovery, waste to energy, final disposal, and household recycling centres. It also provides waste collection, recycling centre management, street cleansing.
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