Veolia has pulled out of the final tender process for the North London Waste Authority’s (NLWA) waste disposal or fuel use contracts worth almost £5bn.
Veolia had been shortlisted, but now only FCC/Skanska is in the running for the final tender for its waste service with E.On/Wheelabrator hoping for the fuel use contract.
NWLA said they were now following government procedure in the case of the premature end of the competitive process, such as considering the value for money of the remaining bids.
Cllr Clyde Loakes, chair of NLWA, said: “Although it is disappointing that we will not receive competitive bids, we will now work with remaining bidders and undertake work ourselves to ensure that we are still able to deliver long term, sustainable services that are the best possible in both quality and cost terms, and that value for money is delivered for tax payers.”
The details of the reasons behind Veolia’s withdrawal from the contract are not known. Veolia Environmental Services had no comment to make in addition to the NWLA statement.
MRW has reported that Veolia and NLWA were coming under pressure from Palestinian rights organisations.
The NLWA represents seven boroughs: Barnet, Haringey, Camden, Enfield, Hackney, Islington and Waltham Forest.
No MBT for Pinkham Way
The NWLA also announced that updated waste flow models showed that new mechanical and biological waste treatment facilities were needed at one site instead of two.
The partnership said: “Subject to a successful planning application for new facilities at Edmonton, it is likely that plans for MBT facilities at Pinkham Way will not need to be taken forward, but this will become clearer in due course.”
NWLA said it will withdraw its outstanding outline planning application for a MBT facility at the Pinkham Way site, which will remain as a sorting point for recyclable material until a local consultation about its future is launched.
“I hope today’s announcement on the future use of the Pinkham Way site will provide some further clarity and certainty for local people,” said Loakes.
“They now know that subject to a successful planning application at the existing Edmonton site, there should be no residual waste treatment at Pinkham Way.”