banner small

SITA lodges appeal over GMWDA legal challenge

SITA lodges appeal over GMWDA legal challenge

SITA UK has revealed that it formally lodged an appeal this week (April 19) over last month's High Court decision to halt its bid for damages relating to the Greater Manchester Waste Disposal Authority's (GMWDA) procurement of its £3.8 billion waste PFI contract.

The company had been reserve bidder for the contract, behind the Viridor Laing consortium which eventually achieved financial close on the deal with the GMWDA in April 2009 (see letsrecycle.com story).

The appeal at been lodged with the Court of Appeal after a judgement made by London's High Court
The appeal at been lodged with the Court of Appeal after a judgement made by London’s High Court
However, in August 2009, SITA launched a legal challenge over the procurement of the contract, claiming it should have been able allowed to resubmit a bid for the deal when Viridor Laing's bid changed after it being named preferred bidder (see letsrecycle.com story).

SITA's legal bid was then challenged by the GMWDA in a High Court hearing in February 2010, with a judge ruling in March 2010 that the company's bid for damages had been brought too late to proceed to full trial and that he would not exercise discretion to allow it to move forward (see letsrecycle.com story).

And, the company has now confirmed that, as planned, an appeal has now been lodged with the Court of Appeal to revive its bid for what is believed to be around £92 million in damages.

“We lodged the appeal yesterday (April 19), but have no further comment to make”, a SITA spokeswoman told letsrecycle.com.

Progress

While a date for the hearing is yet to be set, the ongoing legal issue could threaten to overshadow the progress being made by the GMWDA and Viridor Laing in delivering the contract, which saw it secure planning approval for all 36 facilities being developed under the contract within four months of it being signed (see letsrecycle.com story).

The impact of the contract, and the issues it has faced during and after procurement, on the waste sector as a whole were made clear last week when the North London Waste Authority, which is procuring its own waste PFI worth up to £4 billion, said it had drawn a “number of lessons” from Greater Manchester (see letsrecycle.com story).

Register for free to comment

Subscribe to receive our newsletters and to leave comments.

The Blog Box

Back to top

Subscribe to our newsletter

Get the latest waste and recycling news straight to your inbox.

Subscribe