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Announcement on NLWA procurement

Dec 21, 2012
The North London Waste Authority has received notification from Veolia Environmental Services that they will not be submitting final tenders for either NLWA’s waste services or fuel use contracts.

Veolia had been shortlisted for both contracts and, in withdrawing, Veolia has confirmed that the decision has no bearing on the quality and integrity of the projects. NLWA is now to pursue dialogue on final tenders with only FCC/Skanska for its waste services contract, which is to provide sustainable waste disposal services for north London in the long term, and with only E.On/Wheelabrator for its fuel use contract, it was announced today (21 December).

NLWA is now following published Government guidance on managing a premature ending of a competitive process. This guidance makes clear that NLWA should consider the strength and quality of the remaining bid for each contract, consider the extent to which the competition up to that stage has been effective, and consider whether value for money can be demonstrated with only one bidder for each contract. 

NLWA is now at quite an advanced stage of a procurement process for a new waste services contract. The waste flow model tonnage projections have been updated at key stages of the procurement process using the latest available audited data to account for recent waste trends. While new mechanical and biological waste treatment (MBT) facilities at both its Pinkham Way and Edmonton sites had originally been proposed, it now seems likely that plans for MBT facilities will be taken forward at only one site. Subject to a successful planning application for new facilities at Edmonton, it is likely that plans for MBT facilities at Pinkham Way will not need to be taken forward, but this will become clearer in due course.

NLWA has therefore announced plans to withdraw its outstanding outline planning application for a Mechanical Biological Treatment (MBT) plant at the Pinkham Way site.

The Pinkham Way site remains relevant to NLWA’s service requirements in terms of a delivery, sorting and transfer point for recyclable material and other waste that is collected from local households. Details relating to the future use of the site will depend on the letting of NLWA’s waste services contract and will, at the appropriate time, be subject to local consultation and planning processes.

Councillor Clyde Loakes, Chair of North London Waste Authority, said:

“Although it is disappointing that we will not receive competitive bids, we will now work with remaining bidders and undertake work ourselves to ensure that we are still able to deliver long term, sustainable services that are the best possible in both quality and cost terms, and that value for money is delivered for tax payers.

“I hope today’s announcement on the future use of the Pinkham Way site will provide some further clarity and certainty for local people. They now know that subject to a successful planning application at the existing Edmonton site, there should be no residual waste treatment at Pinkham Way.”

ENDS

For more information, please contact Hannah Paten, Communications Manager, on 020 8489 4360 or hannah.paten@nlwa.gov.uk

Notes for editors

  1. North London Waste Authority is the statutory waste disposal authority for the London Boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest.
  2. NLWA manages the disposal of approximately 846,000 tonnes of municipal waste per year - approximately 3% of the national total. This is expected to grow to more than one million tonnes in the future, partially as a result of housing growth.
  3. The eight north London authorities (NLWA and seven boroughs) have agreed a joint municipal waste management strategy, which includes an ambition for 50% of North London's waste to be recycled and a significant reduction in the amount of waste that goes to landfill.
  4. NLWA is currently undertaking a procurement for future waste disposal services and investment in new infrastructure to avoid the effects of the increasing landfill tax, and to meet national, regional and local demands for a more sustainable waste solution that includes more recycling and recovery.
  5. In February 2012 NLWA announced a shortlist of bidders. Find out more by visiting http://www.nlwa.gov.uk/news/2012/2012/02/13/north-london-waste-and-energy-procurement-advances-to-final-tenders