At a meeting yesterday (April 15) the Merseyside Waste Disposal Authority's (MWDA) members chose Veolia ahead of the only other remaining bidder, SITA UK, to run the contract, the most significant aspect of which is set to be the construction of a new £20 million, 100,000 tonne-a-year capacity materials recycling facility (MRF) at Gillmoss in Liverpool.
As well as taking over the MWDA's 14 HWRCs, Veolia is also set to become responsible for the two sites run by Halton council, which negotiated the deal alongside the MWDA and its five member councils – Liverpool, Knowsley, Sefton, St Helens and Wirral.
While the MWDA has refused to reveal the value of the contract for reasons of commercial sensitivity, with the cost of developing the Gillmoss MRF being mooted at £20 million by the MWDA when it won planning permission to develop the site last week (see letsrecycle.com story), the total contract is likely to be worth significantly more.
Announcing the deal, councillor Kevin Cluskey, chair of the MWDA, said: “We are looking forward to working in partnership with Veolia Environmental Services to deliver improved and quality waste and recycling services to Merseyside and Halton council tax payers. Together with residents and communities we are aiming to significantly boost recycling rates.”
Denis Gasquet, chief executive of Veolia Environmental Services, added: “We are delighted to have been selected as preferred bidder for this long-term contract which will make a major contribution to improving the waste infrastructure across Merseyside and diverting more waste away from landfill.”
“In particular we believe the investment within the Gillmoss Recycling Park will not only significantly increase local recycling capacity but be the focus for a major community education and engagement exercise designed to build real momentum behind recycling. We look forward to working with the MWDA to prepare for contract commencement.”
Procurement
The 'Waste Management and Recycling' contract is the smaller of two deals currently being procured by the MWDA as part of its £3.3 billion procurement programme which aims to reduce the region's reliance on landfill and increase recycling rates over the next 25 years.
The larger contract, known as the ‘Resource and Recovery' deal, received £90 million of PFI funding from Defra and is currently awaiting final tenders, with a preferred bidder set to be selected in January 2010 (see letsrecycle.com story).
That award is being contested by SITA UK; Shanks Group; energy firm Covanta; and the Resource from Waste Alliance – made up of water firm United Utilities, property management company Land Securities and Trillium.
Staff
As part of the new 'Waste Management and Recycling' contract, staff from the Authority's existing contractor Mersey Waste Holdings Ltd (MWHL) will transfer to Veolia Environmental Services in accordance with the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
The preferred bidder will engage with MWHL staff and trade unions at the earliest possible opportunity in the next few days.
Following the appointment of a preferred bidder there will be a period of about four to six weeks transition and financial close, with the new contractor taking over operationally on 1 June 2009.
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