Two consortiums vie for 2bn Essex waste deal

The Essex Waste Partnership today (June 13) moved a step closer to awarding its 2 billion, 25-year residual waste treatment contract with the announcement of a two-bidder shortlist for the deal.

The Partnership which is made up of Essex county council and Southend-on-Sea borough council has shortlisted the Resources from Waste consortium and a joint bid by Spanish-owned Urbaser and equity investor Balfour Beatty Capital.

Resources from Waste is made up of waste management firm Shanks, civil engineering specialist Costain and equity investor John Laing Investments. Shanks replaces United Utilities in the consortium, having purchased its waste PFI business in October 2010 (see letsrecycle.com story).

The announcement means that the SkanskaCory consortium, made up of waste management firm Cory Environmental and Swedish construction firm Skanska, is no longer in the running after being named on a three-bidder shortlist in July 2010 (see letsrecycle.com story).

Essex and Southend are jointly procuring the 25-year contract, which has 100.9 million in PFI credits from the government and is believed to be worth around 2 billion over the course of the contract.

Councillor Kevin Bentley, cabinet member for waste and recycling at Essex county council, said: The Essex Waste Partnership is working hard to ensure that we deliver an improved, sustainable and cost-effective waste management solution for our residents. With the high quality proposals that are now being offered to the Partnership we are confident that the next stage of the process will be achieved.

Contract

A preferred bidder for the deal is expected to be named in early 2012, ahead of a spring 2012 contract award. The successful bidder will be charged with treating 377,000 tonnes-a-year of residual waste arising in the area over the course of the contract.

The Essex Waste Partnership used mechanical biological treatment (MBT) as a reference technology in its application for PFI-funding. The likely destination for an MBT developed under the contract is Courtauld Road in Basildon.

Shortlisted organisations will be able to present any alternative sites and any proposal put forward by the preferred bidder will be subject to scrutiny under the existing planning process.