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Lucky 13 in running for Cheshire&#39s 1bn waste contract

Cheshire county council yesterday unveiled a list of 13 companies in the running for its largest ever contract, a PFI-backed waste deal worth 1 billion.

The companies will now engage in competitive dialogue with the waste disposal authority with the expectation of appointing a preferred bidder in autumn 2008.

Cheshire's PFI bidders:
– Amey Ventures Ltd
– Corus UK Ltd
– Covanta Energy Ltd
– Elliniki Technodomiki TEB AE
– Global Renewables UK Ltd
– Ineos Chlor. Ltd
– Scottish and Southern Supply Ltd
– Shanks Group plc
– SITA UK Ltd
– United Utilities Contract
Solutions Ltd

– Veolia ES Aurora Ltd
– Viridor Waste Management Ltd
– Waste Recycling Group Ltd

A shortlist of two or three bidders should be decided by Spring 2008.

The pre-qualified companies for the contract include five traditional waste management companies – Shanks, SITA, Veolia, Viridor and WRG. It also includes Australian MBT specialists Global Renewables and US-owned energy-from-waste specialists Covanta Energy.

Outside the specialist waste field, support services firm Amey Ventures Ltd is joined by electricity/water firms Scottish & Southern Supply Limited and United Utilities Contract Solutions Ltd in the bidders' list, as well as the Greek construction and energy firm Elliniki Technodomiki TEB A.E.

Two materials companies – steel firm Corus UK and plastics firm Ineos Chlor. Ltd are also on the Cheshire pre-qualifiers' list.

Contract
The contract, supported by 40 million in government Private Finance Initiative credits, will involve the building, financing and operation of new waste management facilities to reduce the amount of waste sent to landfill over a 25-year period.

The county, which is in the process of applying for unitary status, includes the city of Chester as well as the boroughs of Congleton, Crewe & Nantwich, Ellesmere Port, Vale Royal and Macclesfield.

Cheshire is aiming to cut the amount of its waste sent to landfill by more than 400,000 tonnes (from 74% to 17%) under the contract, and to raise recycling rates to 54% by 2020. The county recycled 29.5% of its waste during 2005/06.

A public consultation carried out in late 2004 saw over 84% of respondents agreeing with the Cheshire Waste Partnership's “preferred approach” on waste management, which is to use mechanical biological treatment and produce a refuse derived fuel. However, the county council has said it will consider other options as well (see letsrecycle.com story).

Related links:

Waste management in Cheshire

Announcing the bidders for the contract, Cheshire's environment executive member, Cllr Andrew Needham, said: “This is a significant challenge to produce an affordable and deliverable solution in order to deliver a more sustainable waste management system for Cheshire. We cannot go on landfilling our residual waste and thereby risk penalties imposed by central Government that will cost the Cheshire taxpayer.”

The county council said it was pleased with the level of interest for its contract, with finance executive member Cllr Gretta Cousins saying she looked forward to receiving “highly competitive proposals” from the companies.

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