Merseyside and Halton complete procurement for multi-million pound Waste Contract

Tuesday, December 24, 2013

Merseyside Waste Disposal Authority (MWDA) today (24th December 2013) announced that it has completed its procurement for its 30-year Waste Resource and Recovery Contract on behalf of the Merseyside and Halton Waste Partnership. 

The Financial Close of the contract brings more than £100M worth of savings to the Authority and its partner councils over current landfill costs and over the life of the contract. Merseyside Recycling and Waste Authority (MRWA) today signed contracts with a consortium led by SITA UK for the 30-year Resource and Recovery Contract worth more than £1billion.

The winning bid from the SITA UK-led group includes a high efficiency Energy from Waste facility with Combined Heat and Power at the Wilton International site in Teesside 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 in Knowsley on Merseyside, creating around 25 new permanent jobs.
The energy-from-waste facility will also be able to provide heat to local businesses, with the capacity to deliver 190 tonnes of steam an hour to neighbouring industrial businesses via a district heating system.

This solution will enable the Merseyside and Halton Waste Partnership to divert more than 92% of its residual waste from landfill, while also generating the equivalent electricity to power thousands of homes.

Managing the waste material in this way will result in CO2 reduction of approximately 127,335 tonnes a year – compared with landfill disposal and, by using rail haulage, will effectively remove the equivalent of 21,000 HGV journeys per year off the roads.

The announcement is the final stage 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.

MRWA elected Members have played a key role in the procurement exercise and project has the support of all six district councils that form the Merseyside and Halton Waste Partnership. The process has not been without its challenges, and has continued despite the withdrawal of Waste Infrastructure Credits by DEFRA in February 2013 and a legal challenge to the Preferred Bidder choice earlier this year.

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 Authority will now work with SITA UK and the other partners to implement the contract and start the development and construction of facilities in both Knowsley and Teesside. 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, with the rail terminal development in Kirkby starting in 2014.

Cllr Graham Morgan, Chairperson of Merseyside Waste Disposal Authority said: “Signing this contract today puts in place a sustainable waste management solution for the next 30 years. The solution we have selected for Merseyside and Halton 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 Waste Disposal Authority said: “We are looking forward to working in partnership with SITA UK and other partners to develop modern and efficient facilities that apply the highest environmental standards in tackling the region’s waste issues. Appointing the right contractors, with the right level of expertise, has been a critical part of that process.”

Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said: “SITA UK has developed a strong track-record of agreeing contractual terms quickly and I’m very pleased that we have been able to maintain this record with the Merseyside Recycling and Waste Authority. This new contract fits well with SUEZ ENVIRONNEMENT’s policy to develop new waste recovery facilities and divert waste material from 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.



Please note that the statement refers to Merseyside Waste Disposal Authority.  As this matter is contractual / financial, the Authority uses its statutory name in accordance with the Local Government Act, and not its public facing name Merseyside Recycling and Waste Authority.
(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.
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.

(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.