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.