Viridor has been named as preferred bidder for a 459 million long-term contract to treat South Lanarkshire councils residual household waste.
While neither Viridor nor the council would reveal further details of the contract, council papers reveal the company beat Waste Recycling Group to be named as first choice for the 25-year contract. The decision was announced yesterday (September 7), following a meeting of the Scottish councils executive committee.
The minutes state that the two companies were left as final bidders for the contract in October 2010, having been chosen from an August 2010 shortlist which also featured a joint bid from US EfW specialist Covanta and Scottish waste company William Tracey and a tender from waste firm Veolia.
Procurement for the contract began in November 2009, when a council report explains that around 105,683 tonnes-a-year of residual waste will need to be treated if the council is to meet Scottish Government targets from 2013 onwards.
These include reducing the proportion of waste sent to landfill to just 5% by 2025, as well as recycling 50% of waste by 2020, rising to 70% by 2025. The proportion of waste treated using energy from waste is also limited to 25% by 2025.
Currently, South Lanarkshire sends around 106,000 tonnes-a-year of residual household waste for disposal in landfill with two private waste companies. These contracts expire next year, although they have potential two year extensions. Under a deal awarded in 2007, Viridor handles the bulk of the waste around 80,000 tonnes-a-year (see letsrecycle.com story).
Waste targets
At the start of the procurement, the council said: To achieve the waste targets for 2013, the council will require to divert approximately 45,000 tonnes from landfill from the residual waste stream. This figure rises to approximately 68,000 tonnes to achieve 2020 waste targets.
Current recycling operations will not deliver recycling and landfill diversion targets in isolation and a residual waste treatment solution is required to complement and enhance the existing operations.
No technology has been named by either the council or Viridor yet, although council papers mention involve costings for both energy from waste and mechanical biological treatment.
Commenting on the contract award, Colin Paterson, Viridors Scottish Regional Director, said: As Scotlands leading recycling, renewable energy and sustainable waste partner, Viridor welcomes the decision today by South Lanarkshire Council to announce Viridor as preferred bidder.
We look forward to working towards financial close on the project and to further drive sustainability and zero waste objectives for the council and its communities,
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