The company was today named as preferred bidder for the contract, which is backed by 29.9 million of government money, ahead of the only other remaining bidder Focsa UK. The European Investment Bank will provide up to half of the debt required to finance the contract.
Cornwall's 25-year contract is being negotiated on behalf of its six district and borough councils.
“Per-Anders Hjort, CEO SITA UK, said: ‘We are delighted with the Cornwall success which fits with our strategic development plans in the UK. We have every intention of making this contract a showcase for the industry and a base for securing upcoming tenders.
“Cornwall County Council has been highly proactive in this procurement process and has clearly considered all the issues and details. SITA UK is confident that, working together, this environmentally superior solution will deliver best value for the residents of Cornwall,” he added.
As part of the estimated 500 million contract SITA will be expanding recycling and composting in the county and upgrading the household waste recycling centres. An energy-from-waste facility is also proposed as necessary in order to meet landfill diversion targets.
Cornwall has set no upper level to its recycling rate as part of the contract, but it is aiming for at least 40%.
The procurement period for the contract has suffered several problems, with an action group “Rezolve” claiming last year that the public were not consulted enough.
The council has managed to shrug off the issues though and will now look to get the contract in place as soon as possible. Under Cornwall's original schedule the proffered bidder was to be secured by the end of 2005, with the contract beginning in the summer of 2006. SITA and Cornwall will have to have the contract signed in time for the start later this year.
Subscribe for free