Precise details of why SITA UK, with its real estate partner Lend Lease, chose to opt out have not been given – the consortium has pointed to issues over the suitability of its proposals for the contract after clarifying some matters with the Authority.
SITA UK/Lend Lease had been tipped as a strong contender due to the waste companys long involvement alongside the North London Waste Authority (NLWA) as joint owner of disposal company LondonWaste. The company sold its 50% stake to the NLWA in November 2009 (see letsrecycle.com story) to clear the way for bidding for the waste management contract.
We respect SITA/Lend Lease’s commercial decision to withdraw from the waste services procurement and thank them for their interest to this point
Cllr Clyde Loakes, chair of the NLWA
In a statement issued today (July 13), SITA and Lend Lease said: The SITA UK and Lend Lease consortium has announced its decision to withdraw from the North London Waste Authority Waste Services Procurement.
The decision to withdraw was taken following clarification of the requirements of the tender and the Consortiums subsequent reassessment of the suitability of its proposed solution. This decision was not taken lightly and the Consortium would like to wish the NLWA every success with the ongoing procurement.
They added: SITA UK has reached financial close on two contracts, Suffolk and South Tyne and Wear (the latter with Lend Lease), in the past year and is actively tendering for three PFI/PPP contracts.
The two remaining bidders a consortium between Spanish waste firm FCC and Swedish engineering company Skanska and a bid from Veolia ES were asked to submit detailed solutions to the NLWA on June 30. Work involves the development of new recycling and organic waste treatment facilities as well as mechanical biological treatment to produce a solid recovered fuel (SRF).
NLWA
Commenting on the SITA UK/Lend Lease decision, the NLWAs chair, councillor Clyde Loakes, said: The Authority is very pleased with the market’s response to the Authority’s innovative procurement. We respect SITA/Lend Lease’s commercial decision to withdraw from the waste services procurement and thank them for their interest to this point and for SITA’s past contribution in making LondonWaste Limited the successful company it is today.
He added: FCC/ Skanska and Veolia have both put forward excellent solutions that over-achieve against our modelled costs and ambitions for a future waste management solution that significantly improves our environmental performance and saves local council taxpayers money. We will move forward promptly with those bidders to identify the most economically advantageous tender and award a contract.”
The NLWA also revealed that, while it had expected to reach financial close on the two deals in March 2013, it would now explore whether a faster timetable could be adopted.
Fuel use
Veolia also figures on the three-bidder shortlist for the separate fuel use aspect of the NLWAs 4 billion waste project, which will involve turning the SRF produced under the waste services contract into energy.
Also tendering are Covanta and a consortium consisting of E.On and Wheelabrator. They were named in April 2011 (see letsrecycle.com story) who the NLWA today confirmed had been invited to submit detailed solutions at the end of last month.
PFI
Todays announcement represents the latest incident to affect the procurement of a long-term waste solution by the NLWA, which currently handles 900,000 tonnes-a-year of waste disposal across its seven member boroughs. In October 2010, the Authority had its PFI support withdrawn as part of the governments spending review (see letsrecycle.com story).
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