Biffa has signed up to an eight-year £20m contract for recycling and waste collection services with Portsmouth City Council, starting in October.
The service, covering around 90,000 properties, comprises weekly collections of residual waste in sacks, alternate week collections of commingled recyclables in wheeled bins, communal refuse and recycling, collections from local recycling banks, and clinical waste and bulky item collections.
Around 80 staff from current contractor Veolia will transfer to Biffa before the start of the contract.
Biffa will also run a new Green Waste Club, for the collection and composting of garden waste under a subscription fee-based scheme. It aims to divert garden waste from landfill at zero cost to Portsmouth council.
Biffa Municipal development director Pete Dickson said the company has a relationship with Portsmouth based on a shared risk model called ‘Pain-Gain’.
He said: “We have an annual budget and an annual maximum service price. The two organisations will share, on a 50/50 basis, the upside of any under-budget performance and the downside of any over-budget spend, up to the agreed maximum price. This principle ensures the council gets value for money from the contract.”
Paul Fielding, council assistant head of service, said: “This contract has the potential to save us more than £1m a year. This is a fantastic achievement when you consider that we will continue to provide a weekly refuse service while CO2 emissions will be dramatically reduced. Biffa will also be working with us to maintain and improve the recycling service.”
Portsmouth’s household re-use, recycling and composting rate for 2009-10 was 24.7%.