Sheffield City Council has published further details of the decision to end prematurely a 35-year waste contract with Veolia, revealing a preference to split up the services.
The authority’s cabinet voted to re-procure the services covered by the current contract, which was due to expire in 2036.
The current contract includes operation of the city’s energy-from-waste (EfW) facility (pictured) and an associated district energy scheme. It also covers collection and disposal of waste, running household waste recycling centres, bulky item collections and the removal and disposal of abandoned vehicles.
At the time, a council spokesperson told MRW it had not yet decided whether to divide its current waste services when they are put out to tender.
But now a document on the council’s website reveals the plan to split the contract.
It says the option to tender for another fully integrated contract was discarded because it was less flexible and would be likely to attract less market interest.
“The preferred option is to make separate arrangements for each service, reflecting their specific nature, the council’s requirements for each service and enabling it to deliver a lower-cost, more flexible service overall,” it says.
It recommends separately tendering for a:
- Seven-year collection contract, to reflect the life-cycle of the vehicles used
- Five-year EfW plant operation contract, including the sale of electricity and supply of heat to the district energy network
- Two-year district energy network contract, which the council plans to “strategically develop”
For waste disposal, the council plans to procure a number of contracts depending on which material streams can be aggregated together.
It plans to take the call centre and communications service currently provided by Veolia in-house, to “regain control of management information”.
New contractors for the authority’s waste services are expected to be in place by April 2018.
Meanwhile, the Greater Manchester Waste Disposal Authority has held another meeting to discuss its 25-year contract with Viridor.
In response to reports that the contract could be cut short, the authority conceded in December its nine partner councils faced “significant financial challenges”.
But a spokesperson told MRW there were “no further developments” regarding the contract following its meeting on 20 January.