The final bidding shortlist for lot one of North Lincolnshire Council’s waste PPP has been confirmed, although the council said it has postponed bidding on lot two because of a “funding situation”.
The Design Build Finance Operate (DBFO) waste PPP was valued at £250m for both lots, and is intended to provide a 25-year waste solution for North Lincolnshire, processing up to 1.5 million tonnes of residual waste during the life of the contract.
The final two bidders confirmed for lot one, valued at £210m, are North Lincolnshire Green Energy (NLGE) and Waste Recycling Group (WRG) together with cement manufacturer Cemex. NLGE is a partnership between local lime manufacturer Singleton Birch and waste company Biffa. They plan to build a facility on the Singleton Birch site at Melton Ross to produce green energy from waste. WRG and Cemex propose to produce a solid recovered fuel to fire Cemex’s kilns in South Ferriby.
A preferred bidder announcement for lot one is due in December. But the procurement process for lot two, valued at around £40m, has been postponed.
A statement issued by the council said: “Lot two has been postponed due to the public funding situation and a new procurement will be undertaken.”
Lot two involved the disposal of 20,000 tonnes a year of organic waste. There are no further details on a new procurement process for this lot or when it is likely to happen.