Four bidders have been left in the running for a £1.1 billion residual waste treatment contract in South Wales after a group of five councils today (December 8) halved the shortlist of contenders for the ‘Prosiect Gwyrdd' deal.
The 25-year contract, which is one of Wales' largest ever waste treatment deals, is being procured on a technology neutral basis, although all four bidders are proposing energy-from-waste incineration facilities.
The evaluation of the ‘Outline Solutions' was extensive
Cllr Mark Stephens, chairman of the joint committee
The facility is expected to deal with up to 200,000 tonnes-a-year of residual waste, from Cardiff council, Caerphilly county borough council, Monmouthshire county council, Newport city council and Vale of Glamorgan council.
The four bidders who have been invited to submit detailed solutions under the competitive dialogue procedure being used to procure the deal are:
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Covanta Energy – the US-based EfW incineration specialists are proposing to treat the waste at a 700,000 tonne-a-year capacity merchant EfW plant at Merthyr Tydfil;
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Veolia ES Aurora – the French-owned waste company is proposing an ‘Energy Recovery Facility' at Bowlease Common, in Newport;
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Viridor Waste Management – the Taunton-based waste management company is planning to build a merchant EfW plant with combined heat and power technology at Trident Park in Cardiff;
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Waste Recycling Group – the Northampton-based waste company is proposing an EfW plant on Traston Road, Newport.
This means bids from MVV Umwelt, Shanks, SITA UK and Urbaser which appeared on the original shortlist for the contract published in May 2010 (see letsrecycle.com story). are no longer in contention for the deal.
Councillor Mark Stephens, chairman of the project's joint committee, said: “The evaluation of the ‘Outline Solutions' was extensive, looking specifically at technical assessment, service delivery and the deliverability and integrity of proposed solutions including ensuring that each solution would be able to meet Environment Agency standards”
He said that the councils had ensured that all the remaining bids were “consistent” with the principles of Wales' ‘Towards Zero Waste' strategy. Under the strategy, which was published in June 2010, councils will be legally obligated to reach a 70% municipal waste recycling and composting rate by 2024/25 (see letsrecycle.com story).
The councils involved in the ‘Prosiect Gwyrdd' procurement plan to meet this by reaching a 65% combined recycling rate and then recovering at least 5% more waste through the residual waste treatment process.
Cllr Stephens added: “”The priority for each partner authority is to recycle and compost as much waste as possible.
“Our targets are clear and local authority recycling and composting schemes have been and will continue to be developed to reduce the reliance on landfill and to strive towards the landfill diversions targets that have been set.”
Proposals
Of the proposals shortlisted, Covanta's EfW plans were originally unveiled in January 2009 (see letsrecycle.com story), while Viridor's Trident Park development secured planning permission at the second time of asking in June 2010 (see letsrecycle.com story).
The partnership now plans to continue its dialogue with the shortlisted bidders until summer 2011 before announced a preferred bidder in autumn 2011 and finalising the contract in 2012.
It is being procured with Welsh Assembly Government funding, in the form of a contribution of 25% of the annual gate fee for using the facility, up to £9.124 million a year (see letsrecycle.com story).
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