Energy company E.ON and waste management firm Veolia ES were today (July 29) named as the two remaining contenders for Hertfordshire county council's £800 million PFI-funded waste treatment contract, with both bidders proposing to build a single large energy-from-waste incinerator.
The 25-year deal is set to involve the successful bidder building a 270,000 tonne-a-year capacity facility to deal with the county's residual household waste, with Veolia Environmental Services proposing to build the plant on a council-owned site at New Barnfield, South Hatfield, and E.ON planning to use a site near St Albans that is owned by Lafarge Aggregates.
The decision to cut the shortlist to two was made by Hertfordshire county council's cabinet at a meeting this month (July 19), following the submission of detailed solutions by the previous list of four contenders in April 2010.
The council said these bids had been assessed against “comprehensive” legal, technical, financial, commercial, environmental and social criteria before it arrived at its decision on the final two bidder shortlist.
Commenting on the procurement process, the council's executive member for waste, Derrick Ashley, said that the contract would deliver the twin goals of diverting waste from landfill and recovering energy from the material.
“We want the best possible solution for Hertfordshire and I'm pleased that what residents have said is important to them – namely diverting the maximum amount of waste from landfill, recycling as much as is possible, and making the most of the waste left by recovering energy from it in the form of electricity – is what we are getting,” he said.
Cllr Ashley also acknowledged that there the decision over whether to site the facility would be “not a popular one”, but stressed “it is a decision that has to be taken”.
“I appreciate that there will be local concern and residents will be able to convey these during the consultation on a planning application which the contractor will submit once appointed,” he added.
Next steps
Hertfordshire county council has said that the next steps for the procurement will involve the two remaining contenders continuing to develop and refine their bids, including work to demonstrate the suitability of their proposed sites.
They will then be expected to prepare final tenders by January 2011, ahead of the appointment of a preferred bidder in June 2011, followed by the submission of a planning application for their chosen site.
The council aims to sign the contract in August 2011, and to have the facility being built under the deal fully up-and-running by April 2015.
The project received £115.3 million in PFI funding from Defra in March 2009 (see letsrecycle.com story).
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