Councillors deliberating over the future of the North London Waste Authoritys two large-scale waste contracts have asked for more time to consider the remaining bids.
The NLWA had been expected to agree to name Spanish owned FCC and Skanska as the preferred bidder for its waste services contract during a meeting last week (June 27), but have now conceded that the procurement will be completed later than expected as councillors requested more time to scrutinise the bids.
The Authority is currently procuring a waste services and fuel use contract, which were both left with a sole remaining bidder after Veolia Environmental Services unexpectedly withdrew from the running for the contracts in December 2012.
Veolias withdrawal left the consortium of FCC/Skanska as the sole bidder for the waste services deal and E.On/Wheelabrator for the fuel use contract estimated to have a combined value of around 4 billion.
In a statement published on Monday (July 1), the Authority, which represents the seven North London boroughs of Barnet, Haringey, Camden, Enfield, Hackney, Islington and Waltham Forest, said that its members had asked for more time to consider the outcomes of Veolias withdrawal from the procurement.
Analysis
It said: On Thursday the North London Waste Authority (NLWA) received reports on its procurement for waste services and fuel use contracts, and on the impact of Veolia’s withdrawal from the procurement. Members have decided that more time is needed for the Authority and its constituent boroughs to analyse progress and outcomes of the procurement process to date.
‘Members have decided that more time is needed for the Authority and its constituent boroughs to analyse progress and outcomes of the procurement process to date.’
North London Waste Authority
The Authority has asked for a report on this analysis to be prepared for its September meeting with a view to agreeing next steps at that time. The additional analysis will lead to a slightly later procurement timetable. The details of this timetable will be considered at the same NLWA meeting in September.
Veolia was not the first bidder to drop out of the running from the procurement process, after SITA UK withdrew its submission for the waste services deal in July 2011 (see letsrecycle.com story) and US incineration specialist Covanta removed its bid for the fuel use contract in February 2012 (see letsrecycle.com story).
The councils are also in the process of drawing up a second North London Waste Plan to identify suitable sites for future waste management facilities in the region, after they were found not to have met Duty to Cooperate with planning authorities outside of the capital in drawing up the first version of the plan (see letsrecycle.com story).
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