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Settlement agreed over Merseyside waste contract

Settlement agreed over Merseyside waste contract
An artist's impression of the former Ince Park - now Protos - Peel's flagship facility

A legal dispute over the signing of a 1.2 billion long-term waste treatment contract for Merseyside concluded today (October 18) after Covanta Energy Ltd decided not to pursue its claim.

Merseyside Waste Disposal Authority (MWDA) said it has reached an amicable settlement with the incineration specialist following a procurement update earlier this afternoon.

End of the line: Covanta will no longer pursue its proposed Merseyside facility
End of the line: Covanta will no longer pursue its proposed Merseyside facility

Covanta had previously brought a legal challenge against MWDA over its decision to select a consortium of SITA UK, SEMBcorp Utilities UK and Ituchu Corporation as preferred bidder for its residual waste contract in April 2013 (see letsrecycle.com story).

The terms of the settlement remain confidential, with neither party wishing to comment further.

Commenting on todays announcement, chief executive officer of SITA UK, David Palmer-Jones, said: This is the best possible outcome for the people of Merseyside and Halton and means we can soon get on with the important job of managing household waste in a sustainable and cost effective way.

SITA UK has a strong track record of delivering contracts that get results and that’s exactly what is needed by Merseyside Waste Disposal Authority. We look forward to working together to save council tax payers millions of pounds and reducing carbon emissions by thousands of tonnes each year with our new resource recovery contract.”

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