Merseyside announces shortlist for waste PFI

The Authority has announced that nine firms have been short-listed for its Resource Recovery PFI contract, which will involve the development of an energy recovery facility.

This includes US incineration firm Covanta, Greek construction firm Elliniki Technodomiki (Helector SA), Southampton-based defence and services firm VT Group and the the Resource from Waste Alliance Consortium – a bid involving service firm United Utilities, property manager Land Securities and Trillium.

Also in the running are waste management firm Shanks Group plc, SITA UK Ltd, Veolia ES Aurora Ltd, Viridor and a consortium between Australian mechanical biological treatment specialists Global Renewables and construction firm Bovis Lens Lease Holdings Ltd.

Three companies – SITA, Veolia and Waste Recycling Group – have also been short-listed for a contract to manage all of the region's household waste recycling centres, transfer stations and materials recycling facilities and develop new sites.

PFI

The MWDA – which handles waste disposal for Liverpool, Knowsley, Sefton, Wirral, and St Helens councils – has been awarded £90 million in Private Finance Initiative funding by the Department of the Environment, Food and Rural Affairs (DEFRA) to help deliver the new waste facilities and aims to increase recycling performance levels to above 40% by 2020.

The region currently recycles around 30% of its waste – with the rest going to landfill.

Bids for the recycling contract are currently being evaluated and the MWDA hopes to take the results to its member in June 2008.

Firms short-listed for the energy recovery contract will now be asked, after a period of dialogue, to submit Detailed Solutions for considerations by the Authority around October 2008.

Councillor Kevin Cluskey, MWDA chairperson said: “This is a major step in a drive to boost the region's facilities for handling waste and increasing levels of recycling. If Merseyside doesn't decrease what it is sending to landfill then we could face fines from government.”

Procurement Director, Terry Bradley, said: “The Authority is encouraged by the industry's response to the contracts both in terms of quality, and the range of solutions for the future of Merseyside's waste. We are confident that the continued dialogue will produce world class waste services and facilities for the region.”

Interim

In September, the MWDA announced who was originally in the running for its energy recovery and recycling contracts – and also the shortlist for a third, interim waste treatment contract (see letsrecycle.com story).

Director of Merseyside Waste Disposal Authority (MWDA) Carl Beer said: “Doing nothing is not an option. We have got to tackle the region's waste problems head on. That is why we are spending £3 billion to create a top class waste management service that gives Merseyside Council Tax payers value for money and applies the highest environmental standards in tackling the region's waste issues. Appointing the right contractors, with the right level of expertise, is a critical part of this process.”

Resource and Recovery (PFI) Contract shortlist

• Covanta

• Elliniki Technodomiki (Helector SA)

• Global Renewables/ Bovis Lease Holdings Ltd

• Resource From Waste Alliance (United Utilities Contract Solutions, Land Securities, Trillium)

• Shanks Group plc

• SITA UK Ltd

• Veolia ES Aurora Ltd

• Viridor

• VT Group

Waste Management and Recycling Contract shortlist

• SITA UK Ltd

• Veolia

• Waste Recycling Group (WRG)