SITA UK withdraws bid for South West Devon PFI

SITA had intended to develop an energy-from-waste (EfW) facility in the South Yard of Devonport Naval Base in Plymouth, which would treat 200,000 tonnes of residual waste each year and generate electricity and heat that would be used by the Ministry of Defence.

However, the firm cited “many complex issues” with the site during the planning of the facility that meant it would no longer proceed with the bid.

Paul Gavin, head of PPP development at SITA UK, said: “There have been many complex issues to address in relation to the Devonport site and it has not proved possible to reach a way forward that would enable us to continue with the bidding process and deliver the aspirations of all the parties.”

The South West Devon Waste Partnership – which is comprised of Devon county council, Plymouth city council and Torbay district council – said it was unable to shed any further light on the reasons for SITA's withdrawal due to “commercial sensitivity during the contractual process”.

SWDWP

The withdrawal of SITA leaves German energy-from-waste specialist MVV Umwelt and waste and recycling company Viridor as the two remaining companies shortlisted for the 25-year deal to treat waste generated by the Partnership (see letsrecycle.com story).

Commenting on the withdrawal of SITA, Mark Turner, project director for the South West Devon Waste Partnership (SWDWP), said: “We are naturally disappointed that SITA has had to pull out of the project.

“There are considerable challenges in putting forward proposals of this nature, and unfortunately it has not been possible to achieve a deliverable solution that will meet the needs of the partnership. There have been a number of complex commercial issues which could not be resolved.”

The Partnership said that it intended to cut the shortlist of three bidders to two in March 2010 and that the withdrawal of SITA would not affect the proposed timescale for delivery of the project.

Shortlist

An announcement of the successful bidder for the deal is not anticipated until 2011. However, Viridor outlined plans in September 2009 to develop a facility to treat 275,000 tonnes of residual waste each year at Lee Mill to the west of Plymouth.

The Taunton-based company said the plans would strengthen its potential to bid for the South West Devon contract but added that it would consider constructing the plant even if it was not selected as preferred bidder (see letsrecycle.com story).

When shortlisted, MVV Umwelt also offered a potential site for its facility at the Devonport dockyard but it opted for the North Yard as opposed to the South used by SITA. In addition, the German firm named Ernesetlle to the north-west of Plymouth as another potential location for an energy-from-waste plant.

At the time of announcing the three bidder shortlist a spokesperson for the SWDWP said that it was still open to alternative waste treatment technologies for the deal but that a solution based on energy-from-waste looked “likely”.