And, the island's government is now set to explore the possibility of sending its residual waste to nearby Jersey for treatment instead, after its legislature, the States of Declaration, voted last week (February 24) to withdraw from the contract procurement process and instead begin developing a new waste disposal strategy.
But, a requête, or proposal, made by members of the legislature to abandon the contract noted “mounting public concern and opposition to incineration” and “concern about the capital and running costs associated with the waste treatment facility proposed”.
And, the States of Declaration agreed to proposals which would both withdraw Suez's preferred bidder status and rescind the original decisions it made to begin the procurement process for the contract in the first place.
The agreed proposal explained that: “As a consequence, the Public Services Department will be required formally to notify Suez that the States will no longer proceed to contract closure and to develop and report to the States on a revised strategy for waste disposal as soon as practicable.”
The island's Policy Council was also instructed to find out from the Jersey authorities what the “most beneficial” contractual terms were for exporting waste to the nearby island for disposal.
Costs
The decisions were made despite various departments in the Channel Island's government highlighting concerns over abandoning the procurement process, and in particular the costs of delaying contract award.
In correspondence accompanying one of the proposals, the island's Public Services Department – which acts as its waste disposal authority – warned that, under the agreement it had in place with Suez, it would have to pay the company compensation for design costs of up to 4% of the capital cost – or £3.2 million, if it withdrew from the process “pursuant to a challenge which alters the political or funding commitment”.
The concerns over costs were echoed by the island's Treasury and Resource Department, which highlighted the fact that the island had already aborted a project in 2004 to build a facility under contract with German company Lurgi at a cost of £5.1 million.
If the deal with Suez was abandoned, it said, “it would appear that the Island would have spent at least £8 million on successive procurement processes and be no closer to having an agreed waste disposal solution.”
Both departments also warned of the potential damage to the island's reputation of abandoning a second tendering process, and the costs of beginning a new tender process.
As a result the Treasury said that: “Constantly putting off a final decision in an attempt to find a 'better' and cheaper solution may ultimately result in the States running out of time to put in place a long term and sustainable solution to the issue of residual waste treatment.”
Next steps
Following last week's decision, the States of Guernsey announced on Monday (March 1) that it had tasked Public Services' deputy minister, Scott Ogier, with the lead role in developing the island's new waste disposal strategy.
Public Services' minister, Deputy Bernard Flouquet, said: “There is a lot that we must now do in bringing forward a new strategy, and we are working from a clean sheet. No-one should underestimate the task in hand,' he said.
“We have to be able to bring islanders with us on this issue, because any future strategy will only work with the support of the community. Deputy Ogier is ideally placed to drive that forward, and he has the full support of the Board,” he added.
SITA
When contacted by letsrecycle.com, Bertrand Lepicier, managing director for SITA Guernsey, the company set up to deliver the contract, could only confirm that it had not received confirmation from the States yet, but added “we are discussing with the States at the moment”.
However it is understood that the company is seeking legal advice about its next steps following the States' decision.
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