Shortlists announced for 3 billlion Merseyside contracts

The first contract, to create energy from residual waste, has been whittled down to fifteen bidders including waste management firms Biffa Waste Services, Cory Environmental, Shanks Group, SITA UK, Veolia Environmental Services, Viridor and the Waste Recycling Group.

Others short-listed for the deal – which will provide a long-term solution for Merseyside's waste – include American energy-from-waste technology firm Covanta, Australian mechanical biological treatment specialists Global Renewables and the Resource from Waste Alliance Consortium – a bid involving service firm United Utilities and property manager Land Securities Trillium.

Bids going forth for this contract have also been received by Greek construction firm Elliniki Technodomiki (Helector SA), Scandinavian construction firm Skanska Infrastructure Development Ltd, Spanish oil and services firm CEPSA SA, chemical firm Ineos Chlor and Southampton-based defence and services firm VT Group.

Interim 

The second contract in Merseyside will divert biodegradable waste from landfill until new facilities are built. Cory, Shanks, SITA UK, Veolia, WRG, the Resource from Waste Alliance Consortium and VT Group will all be fighting over it.

In this case, VT Group's bid involves working with the autoclave firm Biossence, which is planning to build an autoclave plant in Merseyside to treat residual waste with steam (see letsrecycle.com story). Lancashire-based in-vessel composting specialist TEG Environmental is also a candidate.

Merseyside's final contract – for the running of its household waste recycling centres – is meanwhile to be contested by firms Shanks, SITA UK, Veolia and WRG.

Carl Beer, director of the Merseyside Waste Disposal Authority (MWDA), said: “We are spending £3 billion to create a top class waste disposal service which gives Merseyside council tax payers value for money and applies the highest environmental standards in tackling the region's waste issues. Appointing the right contractors, with the right level of expertise, is a critical part of the process.”

Landfill

At present, almost 80% of waste in Merseyside is sent to landfill and only 22.5% is recycled.

The MWDA – which handles waste disposal for Liverpool, Knowsley, Sefton, Wirral, and St Helens councils – has been awarded £90 million in Private Finance Initiative funding by Defra to help deliver new waste facilities and contracts to improve this performance (see letsrecycle.com story).

Contract agreement for the household waste recycling centre contract and interim contracts are due to take affect from 2008, and the contract for residual waste recovery is estimated to be agreed in 2009.

Cllr Kevin Cluskey, chairman of the MWDA, said: “This is the first step in a major drive to boost the region's facilities for handling waste and increasing levels of recycling. If Merseyside doesn't increase what it is sending to landfill then we could face fines from government.”

Shortlists

Resource and Recovery Contract:

• Biffa
• Cory Environmental (Central)Ltd
• Covanta
• Global Renewables (Bovis Lend Lease Holdings Ltd)
• Elliniki Technodomiki (Helector SA)
• Ineos Chlor
• CEPSA SA (Amey Infrastructure, Amey Ventures Ltd)
• Resource from Waste Alliance Consortium (Unitied Utilities Contract Solution Ltd, Land Securities Trillium)
• Shanks Group plc
• SITA UK Ltd (Peel Environmental Holdings, RBS)
• Skanska Infrastructure Development Ltd (Earth Tech Engineering Ltd, Tyco Ltd)
• Veolia ES Aurora Ltd
• Viridor
• VT Group Ltd
• Waste Recycling Group Ltd

Interim contract:

• Cory Environmental (Central) Ltd
• Shanks
• SITA UK Ltd
• Veolia ES Aurora Ltd
• VT Group Ltd (Biossence Ltd)
• Waste Recycling Group Ltd
• TEG Environmental
• Resource from Waste Alliance Consortium (Fairpor Engineering Ltd, Unitied Utilities Contract Solutions Ltd, Land Securities Trillium)

Household waste recycling centre/Waste Managament and Recycling contract:

• Shanks
• SITA UK Ltd
• Veolia ES Aurora Ltd
• Waste Recycling Group Ltd