Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

Manchester PFI contract in public ownership for £1

2000 trafford household collections 3

Ownership of the Viridor John Laing (VLGM) joint venture for managing waste across Manchester has now been passed formally to the Greater Manchester Waste Disposal Authority (GMWDA).

The change follows negotations over compensation and the terms of the takeover of the former PFI contract for which GMWDA paid £1, the termination of which was announced in May.

A statement from the authority said: “Ownership of VLGM has now passed to GMWDA and it has been renamed Greater Manchester Combined Waste and Recycling.”

The new business is being led initially by head of corporate services and deputy monitoring officer Sarah Mellor and deputy treasurer Mark Stenson, who have been appointed directors. Authority solicitor Colin Brittain has been appointed company secretary.

VLGM’s infrastructure and operation stays in place, but all responsibilities and subcontracts are now owned by the new company while re-procurement takes place.

The OJEU re-procurement notice is scheduled for October with the new contracts scheduled for April 2019:

  • Residual management – all residual processing sites and activities, plus any associated facilities based on those sites; also included is the Bolton EfW plant and the preparation and delivery of fuel by rail to the Runcorn EfW facility
  • Bio-waste management and facilities
  • Other standalone sites including household waste recycling centres

Refinancing arrangements mean the GMWDA has secured reduced rates, giving savings of £20m a year. Changes to existing facilities are expected to generate further savings.

The authority pulled the plug on the contract because its nine constituent local collection authorities said a proposed increase in their levy of 7.6% in 2018-19 was unaffordable. Since 2014, the authority has raised reserves to lessen the impact on councils but said that was no longer possible.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.