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Veolia named Southwark's preferred bidder

Southwark Council has chosen Veolia Environmental Services (VES) as preferred bidder for its 25 year Private Finance Initiative (PFI) waste management contract.

The successful bid is based on a fully integrated strategy incorporating the construction of facilities such as a new Mechanical Biological Treatment (MBT) plant, municipal depot, materials recovery facility and a household waste recycling and recovery centre.

VES chief executive for UK and Northern Europe Cyrille du Peloux said: We will ensure this contract will bring the borough and its residents the benefits of integrated waste management which combines collection, pre-treatment and disposal and will maximise efficiencies, economies of scale and value for money.

We have set out an innovative and sustainable service that will take into account the latest advances of technology and includes the MBT pre-treatment of residual waste. We look forward to concluding negotiations with the London Borough of Southwark in due course.

Southwark Council secured PFI funding of £34.5 million in January 2005 for the contract which is due to start in October 2007.

Services will cover minimisation, collection, reception, transfer, recycling, composting, treatment and disposal of the boroughs waste, which amounted to 137,000 tonnes in 2004/05 from its 250,000 residents.

Du Peloux added: This decision strengthens our position as the leading company in the PFI waste management market and reinforces our continued growth since the successful acquisition of Cleanaway.

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