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Hertfordshire Waste Procurement Programme – Progress Report

Peter Davidson

Programme Director

9 September 2009

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Current waste performance

• 555,000 tonnes municipal waste per annum

• 44% recycled or composted (household waste)

• 50% to landfill, mostly outside Hertfordshire

• 6% to Edmonton EfW

• Costs over £50m per annum to collect and dispose

• 25% of all Hertfordshire’s Waste

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The drivers for change

• Landfill space running out – 1 left in County

• Landfill Tax significantly increasing costs - £8 per tonne per year

• Landfill Allowances + Trading Scheme sets maximum levels

• Set against a background of increasing recycling – 50% by 2012

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The response

• JMWMS 2007 – launched November 2007

• Feasibility study started November 2007

• Expression of Interest March 2008

• Outline Business Case October 2008

• £115 million of PFI credits allocated March 2009

• Solution needed by 2015

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The reference case for PFI Credits

• 270,000 tonnes

• Energy from Waste + Combined Heat and Power

• County Council owned site at New Barnfield, South Hatfield

• 2 transfer stations

• 75,000 tonnes “potentially untreatable” waste

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What is required from the market

• A solution to treat up to 270,000 + 75,000 tonnes of residual waste at 2039/40

• All of residual waste arisings

• Technology neutral - solution will need to be long term, proven, flexible and reliable

• CC owned site not mandatory

• Recovery of energy – heat and/or electricity

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Progress to date

• OJEU Notice published 9 April 2009

• Pre-Qualification Questionnaire

• Bidders Day – 30+ Companies attended

• 13 Applicants – large companies + consortia

• International interest with a range of experience

• 6 Applicants short-listed + Invited to Submit Outline Solution (s)

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Short-listed companies

• Covanta

• E.ON Energy from Waste AG (EEW)

• MVV Umwelt GmbH

• Shanks PFI Investments Ltd / Wheelabrator Technologies Inc

• SITA UK Limited consortium

• Veolia ES Aurora

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Competitive Dialogue timetable

• Prescribed process – Public Contracts Regulations 2006

• Outline Solutions (ISOS) June – October 2009

• Detailed Solutions (ISDS) November 2009 – October 2010

• Final Tenders (CFT) October – December 2010

• Selection of Preferred Bidder April 2011

• Contract and Financial Close August 2011

• Town Planning May 2012

• Operational Plant April 2015

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Supporting work

• Preparing New Barnfield as the reference site

• CHP Feasibility Study

• Securing transfer arrangements

• Working with Hertfordshire Waste Partnership

• Managing communications

• Interim Waste Contract – less landfill, greater use of alternative treatments

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Key messages

• County Council requires a cost-effective solution for the management of residual municipal waste

• Procurement process is very prescribed

• Dealing with commercially sensitive information

• The Reference Case is a benchmark for evaluation

• The market will provide the solution

• The position may not become clear until Preferred Bidder appointed