Veolia’s waste deal with Birmingham valued at ‘£425m’

The contract, which also includes the management of household waste and recycling centres (HWRCs) and transfer stations, was announced by the council and Veolia last month.

However, the parties did not disclose the value when asked. The tender notice was initially valued at £490 million when put out, but the winning bid was  £425.9 million.

The tender notice also shows that Veolia saw off two other bidders in order to retain the contract.

The contract started on 17 January and runs until 2034.

Tyseley

When announcing the deal last month, Veolia said it is committed to upgrading the existing HWRCs at King’s Norton and Castle Bromwich.

Veolia added that the deal will also mean the existing Tyseley energy from was plant will have its lifespan increased by another 10 years, giving Birmingham city council, “more time to find long-term solutions to its waste strategy”.

The facility provides energy for the National Grid to power up to 63,000 homes a year, Veolia added.

‘Delighted’

Gavin Graveson, senior executive vice-president at Veolia, said: “We are delighted to continue working with Birmingham City Council and to carry on providing a first-class service to the residents to find solutions to the materials they discard every day, whether that is recycling them into new products or generating secure electricity supplies for the National Grid.

“We look forward to sharing our extensive experience for a sustainable future as we support the city to achieve net zero by 2030. We have some key projects planned for the new contract which will enable Birmingham residents to join Veolia and Birmingham City Council on the journey towards Ecological Transformation.”

‘Determined’

Councillor Majid Mahmood, cabinet member for environment at Birmingham city council, said: “As a council and city we are determined to achieve our net zero goal for the benefit of all residents. Improved recycling and low carbon energy are key parts of our strategy so I am pleased we have agreed a contract that puts this front and centre.

“Increasing recycling rates to 70 per cent at the HRCs is a big target but we need to be ambitious and I’m confident the people of this city will work with us to achieve this when we provide the means and support.”