It comes on the back of a public dispute last month which saw the pair clash over a “loss-making” waste contract in the borough which Renewi wanted to leave early.
In March 2018, Renewi announced its intention to leave the contract 10 years early, after making a £3 million loss in the 2017-18 financial year.
Renewi then said last month that there had been no “meaningful discussions” since then and threatened a suspension of operations unless rectified.
The council retaliated at the time by saying it was “extremely surprised” to hear this and was disappointed the waste management company issued the “threat” (see letsrecycle.com story).
‘Positive discussion’
However, the council confirmed in a statement yesterday (August 01) that all waste facilities will continue to operate as normal.
“Following positive discussions between all parties it has been confirmed that all waste facilities throughout Dumfries and Galloway will continue to operate as normal,” the statement said.
It added: “In particular, Household Waste Recycling Centres will be open as usual and household waste collection services throughout Dumfries and Galloway will be running as normal.”
Renewi
Echoing that of the council, Renewi added that all waste management services will continue as long as the “positive” discussions do as well.
Renewi’s statement said: “We are encouraged by the progress being made with Dumfries & Galloway Council and other parties regarding the D&G waste PFI contract. Whilst meaningful discussions continue, recycling and waste management services will continue as normal”.
Contract
The contract between the pair has a somewhat long and complex history. The 25 year PFI-backed waste management deal was signed with the project company, which was a subsidiary of the Shanks Group – which later re-branded as Renewi – in November 2004 (see letsrecycle.com story).
The contract was signed with the subsidiary, Shanks Dumfries & Galloway Ltd, and subsequently, the operating contract was allocated by Shanks Dumfries & Galloway Ltd to Renewi UK Services Ltd.
As part of the £270m contract, Renewi was to process around 95,000 tonnes of municipal solid waste and under the contract, Renewi also had to operate, complete and restore the council’s landfill sites as well as run the council’s civic amenity sites.
This also included building and running the MBT plant in Dumfries.
In 2010, however, John Laing Investments entered the equation when it acquired 80% of the shares and 100% of the loan stock of the subsidiary set up, Shanks Dumfries and Galloway Limited.
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