The North London Waste Authority (NLWA) is to pursue negotiations with two bidders on its Waste Services procurement - a consortium of FCC/ Skanska and Veolia.
This follows the withdrawal from the procurement of a consortium of SITA/ Lend Lease from the shortlist of three bidders selected in April 2011.
An Authority invitation on its separate fuel use procurement was also issued on 30 June. In that procurement the Authority is pursuing negotiations with three bidders - Covanta, a consortium of E.On/ Wheelabrator and Veolia.
The two procurements - that are together designed to deliver 50% recycling, a high diversion of material from landfill and efficient energy use for the second largest waste disposal authority in the UK - were due to reach financial close in March 2013, but the Authority will now examine whether a faster timetable can be adopted.
Both waste services bidder outline solutions involved building new recycling and organic treatment facilities to help deliver 50% recycling and mechanical biological treatment plants to treat waste which cannot be recycled, including the production of Solid Recovered Fuel. This fuel will be transported to an appropriate power plant to replace fossil fuel use in a high efficiency plant.
The new waste services facilities are planned to be located at three North London sites - at Edmonton in LB Enfield, Geron Way in LB Barnet and Pinkham Way in LB Haringey. The solutions also involve an enhancement of Household Waste and Recycling Centres across the seven North London Boroughs. The Authority has not yet announced the location of the three potential fuel use solutions, but has indicated that it will do so shortly with details of the sustainable transport solutions that are available for the movement of the fuel.
Speaking today Chair of the NLWA Councillor Clyde Loakes said: "The Authority is very pleased with the market's response to the Authority's innovative procurement. We respect SITA/ Lend Lease's commercial decision to withdraw from the waste services procurement and thank them for their interest to this point and for SITA's past contribution in making LondonWaste Limited the successful company it is today.
"FCC/ Skanska and Veolia have both put forward excellent solutions that over-achieve against our modelled costs and ambitions for a future waste management solution that significantly improves our environmental performance and saves local council taxpayers money. We will move forward promptly with those bidders to identify the most economically advantageous tender and award a contract".
Notes for Editors
The NLWA is the statutory waste disposal authority for the London Boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest.
The Authority manages the disposal of approximately 900,000 tonnes of municipal waste per annum - 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.
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 of waste that goes to landfill.
The NLWA is currently undertaking a competitive 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 including more recycling and recovery.
Read more about our waste services and fuel use contracts.