The South Wales authority, which had been working under a long-term contract with HLC (Neath Port Talbot) since 2000, was rocked by the Portuguese firm going into administration in 2005.
Neath Port Talbot has now solved its legal dispute over the Crymlyn Burrows Materials Recovery and Energy Centre |
Neath Port Talbot is now working with neighbouring Bridgend county borough council to let a new 25-year deal.
Both authorities have short-listed eight bidders, which include London-based autoclaving firm Sterecycle, to treat over 160,000 tonnes of waste a year.
The development follows months of legal uncertainty over Neath Port Talbot's flagship Materials Recovery and Energy Centre at Crymlyn Burrows, which is at the centre of the procurement.
Court case
Originally owned by HLC (Neath Port Talbot) Ltd, the controversial plant became part of a legal tug-of-war between the council and HLC's creditor, the Royal Bank of Scotland, which was seeking to recoup some of its 40 million debt with the plant's assets.
However, the dispute was settled out of court in November last year (see letsrecycle.com story), putting the Crymlyn Burrows facility firmly in the hands of Neath Port Talbot council.
Speaking to letsrecycle.com last week, Neath Port Talbot's director of the environment Will Watson said: “We went through the sale process and succeeded in buying the facility which enabled us to begin the procurement process.”
He added: “It is anticipated that this process will be concluded by April 2008 with the council entering into new arrangements with the successful contractor to take the facility forward. In the meantime the facility will continue to be operated by the council’s owned company.”
Negotiation
Under the new deal, Neath Port Talbot hopes to either sell the Crymlyn Burrows facility to its new contractor or see the value of facility reflected in the gate fee.
Either way, the council hopes to negotiate as to how to bring the plant which currently diverts around 20% of the area's residual waste from landfill through mechanical biological treatment – up to modern standards.
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Mr Watson said: “When we get the new contractors coming back to us there needs to be a discussion on how to modernise and adapt the facility.”
He added: “Despite the fact that we have had lots of problems over the years in trying to get ahead of the game we are still the best performing authorities in Wales for landfill diversion and we expect the new procurement to maintain our pre-eminent position over the next 5-10 years.”
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