A group of seven Northern Irish councils looks set to abandon the procurement of a waste treatment contract worth up to 560 million, for which a consortium involving waste firm Shanks had been named the preferred bidder.
A meeting of the North West Region Waste Management Groups (NWRWMGs) joint committee was held yesterday (March 19), at which it was decided to recommend the termination of the project for the delivery of residual waste treatment facilities for the region.
This proposal will now be put forward to the seven member councils for consideration, before it can be formally approved.
The group – which is made up of Ballymoney borough council, Coleraine borough council, Derry city council, Limavady borough council, Magherafelt district council, Moyle district council and Strabane district council – covers an area which currently generates around 200,000 tonnes of waste a year.
The project had been described as one of Northern Irelands largest ever procurement exercises.
The SBS Waste Partnership, comprising Shanks, waste and civil engineering firm Brickkiln and construction company Sisk had been named as the preferred bidder for the 25-year deal in May 2013 (see letsrecycle.com story) with plans for the development of a mechanical biological treatment (MBT) and gasification plant in Derry.
‘Uncertainty’
NWRWMG said that a degree of uncertainty surrounding the consortiums ability to deliver the proposals had made it difficult for the continuation of the procurement process.
A spokesman for the group, said: The recommendation was made due to the degree of uncertainty surrounding the project and question marks over the potential for successful delivery of the project in accordance with the appointment business case and the original final tender submission.
It was concluded that continuing with this uncertainty placed councils in a position where it would be difficult to plan adequately to ensure that future waste management obligations were met under the EU Waste Framework Directive. In addition, continuing with the project would involve considerable additional cost to the public purse with no guarantee of a successful outcome.
The spokesman said that the group was very disappointed that it had been forced to make this recommendation, adding: Pending that decision the NWRWMG will continue to work with its constituent Councils to develop solutions to manage the areas residual waste and ensure ongoing compliance with EU, national and regional waste targets.
In a statement, Shanks said: Shanks notes the recommendation of the NWRWMG Joint Committee to the Council and understands this in light of the changed market conditions and circumstances.
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