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Merseyside and Halton announce Preferred Bidder for multi-million pound Waste Contract (19 April 2013)

Merseyside Recycling and Waste Authority (MRWA) today announced that it has selected a Preferred Bidder for its 30-year Waste Resource and Recovery Contract on behalf of the Merseyside and Halton Waste Partnership. The contract will bring £145M worth of savings to the Authority and its partner councils over current landfill costs.

Merseyside Recycling and Waste Authority (MRWA) today announced that it has appointed Sita as its Preferred Bidder for the 30-year Resource and Recovery Contract worth more than £1billion following a meeting of Authority members on 18th April 2013.

Merseyside Recycling and Waste Authority has completed a competitive procurement exercise, shortlisted bidders and evaluated two final tenders from Covanta and Sita.

The winning bid from Sita includes a high efficiency Energy from Waste facility with Combined Heat and Power at the Wilton International site in Teeside creating around 50 new permanent jobs, and a new rail hub for the transportation of waste at the existing Potter Group Rail Freight Terminal at Kirkby on Merseyside creating around 25 new permanent jobs.

The announcement is part of the final stages of a resource management project which will provide a sustainable and cost effective solution for 430,000 tonnes of municipal waste per year, which the Authority handles and which has not been recycled.

Members resolved at the meeting that the procurement exercise continue despite the withdrawal of Waste Infrastructure Credits by DEFRA in February 2013. The Authority, which currently landfills most of the waste that hasn’t been recycled, is under a duty to procure a more sustainable and affordable alternative to landfill for the Merseyside and Halton Waste Partnership that represents long-term value for money.

The other bidder, Covanta, was unsuccessful and the Authority will now be proceeding without a Reserve Bidder.

The Authority will work with the Preferred Bidder to move towards Financial Close which is likely to be in late 2013/early 2014. The Wilton Energy from Waste plant is expected to take two years to build and the contract is expected to start handling waste in 2016.

Cllr Joe DeAsha, Chairperson of Merseyside Recycling and Waste Authority said: “The appointment of Sita as our Preferred Bidder marks the beginning of an important new chapter in the way Merseyside and Halton deals with its waste resources. I believe that the solution we have chosen is the best for the environment – saving natural resources, generating green electricity and providing value for money for Merseyside and Halton Council Tax payers.”

Carl Beer, Chief Executive of Merseyside Recycling and Waste Authority said: “We are extremely pleased to have progressed to this stage. I’m confident that we can now work towards putting our plans in place and concentrate on providing future generations in Merseyside and Halton with an effective and sustainable waste solution.”

Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said: “We are delighted that the Merseyside Recycling and Waste Authority has selected the SITA Sembcorp UK consortium as preferred bidder for this important contract. SITA UK has a strong record of achieving financial close quickly and delivering the new waste management infrastructure that is needed by local authorities in the UK. This new contract fits well with SUEZ ENVIRONNEMENT’s policy to develop new waste recovery facilities and fits with the UK’s government aspiration to reduce the amount of waste going landfill.”

MRWA, through this contract will divert more than 90% of Merseyside and Halton’s residual waste away from landfill, and will ensure that this significant region complies with its requirements under the European Union Landfill Directive, and will play a key part in combatting climate change by reducing greenhouse gas emissions created by landfill. The project has the support of all six district councils that form the Merseyside and Halton Waste Partnership.

ENDS

MRWA Media contacts:

Colette Gill, Tel: 0151 255 2527 email: colette.gill@merseysidewda.gov.uk or

John Lally, Tel: 0151 255 2568 email: john.lally@merseysidewda.gov.uk

 

NOTES FOR EDITORS

(1)   WICs: DEFRA announced in February 2013 that the provisional allocation of Waste Infrastructure Credits (£90M) had been withdrawn from the Merseyside and Halton project, along with two other waste procurement projects in England, on the grounds that DEFRA did not consider that it needed any more residual waste treatment infrastructure nationally, to meet EU Landfill Directive targets

(2)   MRWA: Merseyside Recycling and Waste Authority (formerly Merseyside Waste Disposal Authority) is responsible for the disposal of municipal waste on Merseyside. Established in 1986 following the abolition of Merseyside County Council, it is a statutory Authority that works with all the local authorities on Merseyside – Knowsley, Liverpool, Sefton, St Helens and Wirral. MRWA takes a lead in advocating recycling, waste minimisation and safe and effective disposal of waste for Merseyside’s residents. www.merseysidewda.gov.uk. MRWA is a key partner in the Merseyside and Halton Waste Partnership which was established in 2005. All members of the MHWP have responsibilities for tackling the effective delivery of sustainable municipal waste management in Merseyside. recycleformerseyside.com

(3)   SITA UK: SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, is a recycling and resource management company, generating environmental value, social value and economic value from our nation’s waste. The company delivers environmentally responsible and increasingly innovative solutions for the public, local government, industry and commerce, enabling our customers to reduce their impact on the environment. SITA UK serves over 12 million people and handles more than eight million tonnes of domestic, commercial and industrial waste through a network of recycling, composting, energy-from-waste and landfill facilities.  SITA UK employs over 6,000 staff and has an annual turnover in excess of £700 million

(4)   SUEZ ENVIRONNEMENT: Natural resources are not infinite. Each day, SUEZ ENVIRONNEMENT (Paris: SEV, Brussels: SEVB) and its subsidiaries deal with the challenge of protecting resources by providing innovative solutions to industry and to millions of people. SUEZ ENVIRONNEMENT supplies drinking water to 96.6 million people, provides wastewater treatment services for 66.3 million people and collects the waste produced by 50 million people. SUEZ ENVIRONNEMENT has 79,550 employees and, with its presence on five continents, is a world leader exclusively dedicated to water and waste management services. In 2012, SUEZ ENVIRONNEMENT, a subsidiary in which GDF SUEZ has a 35.7% interest, generated revenues of EUR 15.1 billion.

(5)   Sembcorp Utilities UK: is a leading industrial energy,water and services provider based at the Wilton International site near Redcar in North east England. The company, part of the Singapore-based Sembcorp Industries Group, became the pioneer of biomass power production in the UK in 2007 when the 35MW Sembcorp Biomass Power Station (also known as Wilton 10) came on line. The plant uses around 300,000 tonnes of sustainably sourced wood a year as its fuel.

(6)   Sembcorp Industries: is a leading energy, water and marine group operating across six continents worldwide. With facilities with over 5,600MWs of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development. The Group has total assets of over S$12 billion and employs over 9,000 employees worldwide. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.