Defence firm VT is favourite for 700m Wakefield PFI contract

Following yesterday's announcement, the metropolitan district council will begin final negotiations with VT, with the aim of starting the new contract which will include an autoclave facility, in summer 2008.

Wakefield has already secured government Private Finance Initiative (PFI) funding of £33 million for the project, which is valued at £700 million over the next 25 years

Southampton-based VT will build an autoclave, in-vessel composter, anaerobic digester and a materials recycling facility, to treat up to 200,000 tonnes of Wakefield's waste each year.

Construction of the new facilities will begin in 2009, if the contract is signed and sealed as planned, and land on part of the former South Kirkby colliery site is earmarked for the development.

VT will also provide new household waste recycling centres in South Kirkby and the Glasshoughton area, together with refurbishment of the existing centres. The company will take over the existing recycling centres and landfill operated by the council until the new facilities are operational.

The Yorkshire council's decision to proceed with VT comes three months after it whittled its shortlist of bidders for the contract down to two – VT and the Waste Recycling Group (see letsrecycle.com story).

Cllr Graham Isherwood, cabinet member for environment, said: “This latest decision to appoint VT Group as the preferred bidder concludes what has been a significant procurement exercise for the Council.

“I am delighted that the VT Group has been chosen to manage the treatment and disposal of the district's waste for the next 25 years and look forward to a true partnership working arrangement with the council's collection service.”

It is expected the new contract will help raise recycling rates to at least 55% by 2015, more than double the 24.2% achieved by Wakefield in 2006/07. Presently, the council collects cans, glass and plastic bottles in a green box, while paper and cardboard are collected in a brown bin. There is also a separate garden waste collection.

Wakefield's PFI contract announcement comes just a few weeks after it rolled-out a trial for fortnightly bin collections to 24,000 households.

VT Group

The VT Group has built its reputation on civil and defence support services but in recent years has diversified into communications, education and skills.

The Wakefield project is its first foray into waste management although the company has said it will draw on its expertise and experience in PFI, project management, and long-term service delivery, gained through its other business sectors.

VT Group chief executive Paul Lester said: “The waste management sector will grow considerably over the next few years as EU directives restrict the amount of waste that can be put into landfill.

“We believe there is major potential for VT in this market, using our engineering skills, and Wakefield marks a significant first step in this new business. It also offers us the opportunity to continue extending our range of engineering-based support services in line with our strategy to focus more on this part of our business.”