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Two bidders left in running for 1bn Cheshire PFI

Cheshire county council has narrowed the shortlist of bidders for its £1 billion, 25-year PFI-funded residual household waste treatment contract to two contenders.

The project, which received £40 million in PFI credits from Defra in June 2006 (see letsrecycle.com story), involves the development and management of infrastructure to treat up to 200,000 tonnes of waste a year.

New technologies are needed to provide an option to landfill, which is being made increasingly expensive for taxpayers by the imposition of a steeply increasing government tax programme

 
Councillor David Brickhill, Cheshire county council 

The bidders left in the running are Viridor Waste Management and a consortium between utilities company United Utilities and services and maintenance firm Interserve. They have been selected from an original list of 13 (see letsrecycle.com story).

Following the announcement, councillor David Brickhill, executive member for the environment, said: “New technologies are needed to provide an option to landfill, which is being made increasingly expensive for taxpayers by the imposition of a steeply increasing government tax programme.

“During the summer we shall be closely examining all the implications of the proposals from Viridor and United Utilities – the benefits, costs and risks – before making a decision on this vitally important issue,” he added.

Viridor

Viridor's bid is focused on the development of a “centrally located” MBT facility, producing a solid recovered fuel which would then be burnt at Ineos Chlor's combined heat and power plant in Runcorn, Cheshire, which received planning permission in September 2008 and is also expected to burn waste-derived fuel from Greater Manchester (see letsrecycle.com story).

The company's technical and development director, Barrie Hurley, commented: “Our solution brings environmental, social and economic benefits both locally and regionally.”

United Utilities

United Utilities and Interserve meanwhile propose to build a gasification facility to treat Cheshire's residual household waste which would produce electricity and heat for both the plant and local distribution.

The two companies are already working together in Derby, where they were last month confirmed as preferred bidder to deliver a 140,000 tonne-a-year capacity gasification plant in the city (see letsrecycle.com story).

Charlie Cornish, managing director of business development at United Utilities, said: “We aim to improve existing recycling and waste management across Cheshire, using environmentally sustainable, advanced technologies that support the generation of renewable energy.”

Unitary

Cheshire's procurement process is continuing as planned despite the fact that, from April 1, the county council will cease to exist when it is split into two new unitary authorities, Cheshire West and Chester, and Cheshire East (see letsrecycle.com story).

The next steps for the project will see a full public consultation being held in the summer when both bidders are expected to submit planning applications including full details of their processes and proposed sites.

The bids are now being scrutinised by the soon-to-be-created councils' Joint Waste Management Board which is aiming to recommend a preferred bidder in November 2009, with the aim of having any new facilities up-and-running in April 2013.

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