A dispute between Covanta Energy and Merseyside Recycling and Waste Authority (MRWA) over a massive waste contract has reached an amicable settlement.
Covanta had entered a tender for a 30-year £1.18bn contract to manage 430,000 tonnes of waste per year in Merseyside and Halton.
MRWA operates as a legal entity called the Merseyside Waste Disposal Authority (MWDA). In April 2013, MWDA selected a Sita-led consortium as preferred bidder.
Covanta decided to take legal action against MWDA in June.
Covanta decided to take legal action against MWDA in June over claims it had not been transparent in the tendering process. Covanta said it had been given the impression that MWDA had approved of certain parts of the tender during initial discussions but had later called them “fundamentally unacceptable”.
An interim injunction from the High Court was set to delay the start of the waste contract until the outcome of a court case set for April and May 2014.
On 18 October, MWDA and Covanta announced they had managed to reach an “amicable settlement” of their dispute. As a result, Covanta agreed not to pursue its claims against MWDA.
The entities said they would not disclose the terms of the settlement.
David Palmer-Jones, Sita chief executive, said: “This is the best possible outcome for the people of Merseyside and Halton and means we can soon get on with the important job of managing household waste in a sustainable and cost effective way.
“We look forward to working together to save council tax payers millions of pounds and reducing carbon emissions by thousands of tonnes each year with our new resource recovery contract,” he added.
The project proposed by the Sita-led consortium includes the building of a transfer station where waste will be loaded onto trains at Knowsley to be taken to a new incinerator near Redcar, Teesside.