In a meeting this afternoon (16 December), a report approved by the NLWA gave further details of the procurement and concluded that the bid proved good value for money.
Cllr Rowenna Champion and Cllr Satnam Gill of Islington were among those to back the bid, saying it presented “best worst option”, while Cllr Mete Coban (Hackney) said the alternatives to not going ahead with the plant were more costly to the taxpayer and environment.
Cllr Isidoros Diakides and Cllr Mike Hakata (both of Haringey), both voted against the bid, saying they believe it did not provide value for money.
Tender
The NLWA project team will now notify Acciona of the outcome of the procurement exercise.
Feedback will be issued to the tenderer and a 10-day standstill period will commence. Once this is complete, the project manager will confirm the contract.
The tender was launched in 2020, and it came to light in August 2021 that Acciona was the only remaining bidder, after an unnamed third party pulled out (see letsrecycle.com story).
The NWLA said that in April, when it became clear Acciona was the only bidder, it began dialogue with them alone.
“The dialogue afforded an opportunity to scrutinise the tenderer’s proposal in more detail than would have been the case had there been several tenderers,” the NLWA added.
Dialogue concluded on 5 October 2021, and the invitation to submit a final tender was issued to Acciona for return on 25 October.
Value
The report explained that the bid will provide a facility to treat waste at a lower cost to the boroughs than alternative means to treat residual waste, which is the authority’s statutory duty.
“The procurement process has now been completed and it demonstrates that the contract, if entered into, will meet the authority’s requirements,” the report says.
“The business case restatement evidences an anticipated outturn of £1,217.73m against the baseline cost in March 2019 of £1,220.62m after adjustment for inflation so that the comparison is on a like-for-like basis.”
The report concluded that the procurement of the energy recovery facility (ERF) has been a “well-run and successful process that exemplifies the best practices of modern public procurement”.
Emissions
The application to have the plant accepted included requirements for emissions control “more rigorous than any other operational facility in the UK”.
As a result, the NLWA says the facility will be the first in the UK to use ‘selective catalytic reduction’ to control emissions, and the first to employ a combined wet/dry scrubber system to reduce particulates, acid gases and other emissions.
The ERF will support one of the UK’s largest district heat networks, with capacity to supply low-carbon heating and hot water to up to 50,000 homes and businesses.
This will save carbon compared with homes having individual gas boilers or heat pumps, the NLWA says.
The authority has also agreed to publish a strategy for developing a carbon capture, utilisation and storage (CCUS) solution.
The demolition of the existing facility in 2030 will provide adequate space for a carbon capture and conditioning plant and the ERF will be developed to be carbon-capture ready.
Controversy
The NLWA manages waste on behalf of Barnet, Camden, Enfield, Hackney, Haringey, Islington, and Waltham Forest, serving more than two million people.
The NLWA’s existing EfW plant in Edmonton is decades old. It is to be knocked down and replaced with the larger 700,000 tonnes per year facility.
But the plans have received some kickback.
Last month, Cllr Peray Ahmet, the leader of Haringey council, broke rank from the other six local authorities involved with the project to write to the NLWA to ask them to “pause and review” the redevelopment of the plant (see letsrecycle.com story).
Jeremy Corbyn, the former Labour Party leader and Islington MP, also called for the plans to be halted.
However, this week the GMB Union and Hackney council urged the NLWA to “press on” with the plans (see letsrecycle.com story).
Plea
Prior to the vote, the NLWA heard a number of submissions from people to urge them to pause and review the “expansion” of the plant.
Dr Edward Tranah, a medical doctor, said: “You have an opportunity now to have the biggest impact on the climate you’ll ever have.”
When asked by Cllr Coban of Hackney how he would deal with residual waste, Dr Tranah said: “I’m not an expert in waste management. We have a lot of resource available to use, around £1 billion. This could be invested into recycling and innovative solutions.”
Dr Tranah was among a number of people to raise concerns at the beginning of the meeting, but ultimately councillors decided this was the best way to progress.
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