This follows on from the formal adoption of its Outline Business Case in September 2023.
ELWA is procuring this contract under three lots. The contract will be for an initial period of 10 years, with extension provisions of up to five years.
ELWA is projecting 330,000 tonnes of residual waste will need to be managed, but it isn’t guaranteeing the market minimum tonnages so that it can maximise the value and opportunities being generated through the ongoing implementation of the government’s Resources and Waste Strategy.
Instead, the winning bidder for each of the lots will be said to secure exclusivity to a guaranteed percentage of the authority’s residual waste. The exclusivity percentage will vary depending on the lot size, ranging from 25% to 45% of the authority’s waste.
The authority is offering bidders use of the existing large waste transfer facilities at Frog Island (LB Havering) and Jenkins Lane (LB Newham), but bidders do not have to use them.
ELWA will be using a two-stage Competitive Dialogue procedure for this procurement, providing bidders with the opportunity to propose and discuss innovative solutions.
The award of the contract is anticipated for the summer of 2025.
ELWA will be launching further procurements in due course, as it seeks to replace its existing long-term integrated contract.
This will include treatment capacity contracts for dry recycling, food waste and garden waste, along with a procurement for an operator of its waste transfer sites, provision of haulage services and management of the four Reuse and Recycling Centres in the authority’s area.
‘Exciting milestone’
Andrew Lappage, managing director at ELWA, said: “The launch of the residual waste procurement is an important and exciting milestone for ELWA, as we look to deliver value for money for local people in a changing world, while also reducing the environmental impacts of managing waste.
“We are launching this procurement during a time of great uncertainty within the resources and waste industry. The government’s ongoing collection and packaging reforms, along with the forthcoming extension of the Emissions Trading Scheme, represent a significant shift in how this industry operates, and it is imperative that ELWA is positioned to be able to maximise opportunities and continue to deliver value for money.
“Through pre-market engagement work, we identified that potential bidders would be comfortable with each having a percentage of exclusivity, rather than a guaranteed minimum tonnage. The launch of this procurement will enable us to work with the market to find the best solutions for managing residual waste once our current contract ends.”
Subscribe for free