Shanks Group is proposing a joint venture with equity group Babcock & Brown to go for the PFI-supported 4 billion waste management contract with the Greater Manchester Waste Disposal Authority.
” We have always known that delivering the world-class waste solution that Greater Manchester requires would be a hugely challenging demand. “
– Cllr Neil Swannick, GMWDA
And, Viridor Waste Management has signed an agreement to work with a subsidiary of construction firm John Laing on winning the contract, which is expected to be awarded by April 2007.
Other companies in the running for the contract are SITA UK and Waste Recycling Group.
GMWDA
Manchester's waste disposal authority has responsibility for waste collected in Bolton, Bury, Manchester City, Oldham, Rochdale, Salford, Stockport, Tameside and Trafford. The Authority's 25-year waste contract is being supported by 100 million in government Private Finance Initiative credits.
The Authority has confirmed that both of the consortium bids meet pre-qualifying criteria for the tender process.
Cllr Neil Swannick, chair of the Authority, said: “We do not receive tender responses until the end of January and we do not therefore know how bids from these two consortia will compare with others.
“However, we have always known that delivering the world-class waste solution that Greater Manchester requires would be a hugely challenging demand and that some bidders may consider that consortia approaches would provide the best approach,” Cllr Swannick said.
Shanks
Shanks Group, which is already running PFI contracts for the East London Waste Authority and Dumfries & Galloway, is known for its desire to establish major mechanical biological treatment plants in the UK. The company is near to completing its first such plant at Frog Island, East London.
Its consortium will take the form of a 50-50 joint venture global investment and advisory firm Babcock & Brown, which has already been active in developing PFI projects in the UK. The Australian-listed company has developed 15 PFI projects so far in the legal, education and health sectors, and is currently preferred bidder for 300 million worth of contracts.
Commenting on the partnership, Shanks Group chief executive Michael Averill said: “We are delighted to have Babcock & Brown as our joint venture partners, who have extensive experience within the PFI arena. We fully believe that the unique strengths of each party will enhance our bid and will improve our ability to provide GMWDA with the high quality facilities and services that they expect.”
Viridor Laing
Meanwhile, Viridor Waste Management has now formally announced that Laing Roads & Utilities – a division of John Laing plc – has joined its bid for the Manchester contract. The companies may also bid for other PFI contracts under the “Viridor Laing” consortium.
For Manchester, the Viridor Laing consortium has pledged itself to “radically reducing the proportion of waste sent to landfill” through its bid, which would focus on “high levels of materials recycling and recovery”.
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Andy Friend, chief executive of John Laing, said: “To date, there has been insufficient investment in the sector to ensure that waste disposal authorities meet their EU landfill targets in 2010. This now set to change.”
Viridor chief executive Colin Drummond added: “The combined strength of Viridor Laing will enable us to offer practical competitive solutions for the needs of GMWDA. The Viridor Laing combination brings together many years of complementary experience and expertise.”
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