However, Biffa has now claimed that its proposal for Caerphilly to treat waste through mechanical biological treatment (MBT) was considered no more expensive than alternatives available from any other provider.
The Biffa offer involved a very significant financial cost to the authority.
Cllr Harry Andrews, Caerphilly
The Welsh authority agreed at a full council meeting this week that its three-year negotiations with its preferred bidder Biffa would be terminated because of “affordability” problems.
The council is now looking to develop regional waste management facilities in a consortium arrangement between councils in South East Wales known as “Project Gwyrdd”.
In a statement issued jointly by council leader Councillor Harry Andrews and chief executive Stuart Rosser today, the council said: “A decision was made at Full Council this week about the council's proposed waste management contract with Biffa. Members agreed not to proceed with the contract due to a series of concerns about its affordability.”
“We are still committed to finding greener ways to deal with waste and the council will now look at other options, including working with other local authorities in a consortium agreement,” the council added.
Rejection
Caerphilly council's rejection of the contract with Biffa came after a report from its cabinet earlier this month, which recommended that the procurement process with Biffa be terminated.
Cllr Andrews explained that the choice had been made following pressures on the council budget. He said: “The Biffa offer involved a very significant financial cost to the authority, which would create huge financial implications on our budgets both now and in the future.
“The authority has been impressed with the professionalism shown by Biffa staff during the process, but ultimately it has been the affordability of the project that has resulted in the Cabinet recommendation to the council,” he added.
Biffa
Waste firm Biffa expressed its disappointment today concerning the council's decision, but stressed that its MBT services were no more expensive than those of its competitors.
A spokesman said: “Biffa is naturally disappointed with this decision but recognises that affordability is a key factor in the decision-making process of any long-term waste treatment and disposal solution.”
He added: “We believe this technology is absolutely right for local authorities, with the solution Biffa had proposed for Caerphilly being tailored to the authority's specific requirements. We are reassured by the council's commitment that 'it is unlikely that any other MBT option available on the market place would represent greater value for money'.”
MBT
Under the original proposed deal with Biffa, Caerphilly was planning to build an MBT plant to treat residual waste on the Duffryn Industrial Estate in St Ives.
The site, which was acquired for £5.2 million, would have processed 55,000 tonnes of mixed “black bag” waste a year, contributing to Caerphilly's Welsh Assembly-set recycling targets (see letsrecycle.com story).
Caerphilly will now consider whether it will join a consortium of other councils in South West Wales, to build regional waste facilities which it deems a potentially cheaper option.
Councillor Andrews said: “We have recommended that the authority implement a new procurement strategy for waste in collaboration with other councils to achieve a long term solution which is more affordable.”
Caerphilly is currently one of the top councils in Wales for recycling, with a 28% municipal waste recycling rate in 2005/06.
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