NLWA contracts may be decided this week

The NLWA 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 (see letsrecycle.com story).

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.

As a result of the withdrawal, the Authority, which represents the seven north London boroughs of Barnet, Haringey, Camden, Enfield, Hackney, Islington and Waltham Forest, was forced to follow government guidance on managing a premature ending of a competitive process.

Councillors are set to discuss the procurement, as well as other planning issues around waste management in north London at a meeting of the authoritys executive committee, due to take place on Thursday morning at Camden Town Hall.

According to the minutes released ahead of the meeting, the Authority views both of the remaining offers as deliverable solutions that would over achieve on its environmental aims.

It said: During 2012/13 the procurement of the waste services and fuel use contracts continued to ensure robust technical solutions on competitive terms. Veolia withdrew from both procurements in December 2012 leading to the adoption of government guidance on managing a premature ending of a competitive process.

Solution

The emerging solutions were expected to over-achieve against the Authoritys environmental ambitions at a significantly less than expected cost, and appeared to offer good prospects of deliverable solutions involving significant investment in the local economy and increased training and employment.

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 currently 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).