Four companies still in line for Manchester waste contract

Shanks, SITA, Viridor and WRG all returned their bids this week for the 25-year contract which is supported by 100 million private finance initiative credits.

” We are in a position in Manchester to go to a (RDF) user and say that we can offer a large amount of fuel for the next 25 years “
– Tim Judson, GMWDA
This came in the week that Defra expressed concerns that there were not enough players in the UK market for the large scale council contracts being offered in the private sector (see letsrecycle.com story).

Manchester has said that the reason for its success in attracting bidders is down to the separation of its contract, with short-term landfill provision and an outlet for refuse derived fuel procured.

One of the biggest worries for waste management companies is ensuring a market for waste treatment residues. But by beginning the tendering process for a plant to take residues from Manchester the authority has potentially cleared that headache for the would be PFI contractor.

Tim Judson, director of procurement at the GMWDA, told letsrecycle.com: “We have issued a prior notice looking for major energy consumers that either the authority or our contractor can sign a long-term contract with in order to guarantee there is somewhere to sell the RDF.

“We are in a position in Manchester, because of the amount of waste produced, to go to a user and say that we can offer a large amount of fuel for the next 25 years. Half a dozen authorities producing 50,000 tonnes each wouldn't be able to do that,” he added.

The council has also split the first five years of its landfill management into a separate contract, Mr Judson explained that it allowed the bidders to concentrate on the technology to deal with waste without worrying about the landfill side.

Shanks, which does not have a major landfill presence in the area, has made the most of the option by choosing not to bid for the contract. The other three bidders, along with Biffa and Onyx have all tendered for the landfill responsibilities.