County’s ruling over waste plant doesn’t make good news

12 March 2008
 
Norfolk County Council has ruled out its own company from bidding to provide a second new waste-treatment plant, despite having already signed it up to provide the first.

The council will not accept a tender from Sustainable Resource Management (SRM), a subsidiary of the council-owned Norfolk Environmental Waste Services (NEWS), for a new waste-treatment facility needed to reduce the amount of waste the county is sending to landfill.

This is because it ‘recognises’ concerns from the Department for the Environment, Food and Rural Affairs (DEFRA) over the transfer of financial risk and competition interests. Norfolk is in the final stages of signing a contract with SRM to provide one mechanical biological treatment and aerobic digestion plant as part of a public-private partnership.

However, it was warned off from allowing it to tender for a second contract – which is to be a private-finance initiative worth more than £137M – by DEFRA, which said it would mean the council was still bearing the financial risk of the scheme, and that it could deter some private companies, as they might feel the council’s mind was already made up.

Joel Hull, project manager at Norfolk’s waste management team, said: ‘We recognise, but not necessarily share DEFRA’s concerns, and decided not to allow NEWS to bid.

‘Apart from that, we are not ruling anything in or out, and expect a range of bidders to put in tenders who will have to justify their schemes in the normal way.’ A decision on who will deliver the waste-treatment solution is expected in autumn this year.

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