SITA UK has announced its decision to withdraw from the procurement tender for the North Wales Residual Waste Treatment Project (NWRWTP).

The residual waste facility (set to be operational by 2017) forms part of a Welsh Government-sponsored project to divert approximately 150,000 tonnes of non-recyclable residual waste from landfill in the five North Wales Residual Waste Treatment Partnership local authorities: Flintshire County Council, Conwy County Borough Council, Denbighshire County Council, Gwynedd Council and the Isle of Anglesey County Council. The government’s planned investment over the 25-year timeline of the project is £600-800 million.

Waste management company SITA UK and Wheelabrator Technologies Incorporated (Wheelabrator) had been selected as the final two bidders to operate and manage the £800-million waste facility contract last August, after Veolia ES Aurora Ltd was ruled out as a bidder.

According to the Joint Committee, Wheelabrator and SITA UK were chosen for their ‘proven track record’ of operating such facilities in the UK, Europe and the United States.

However, SITA UK has now pulled out of the procurement process claiming that because of the current economic climate, the project ‘ranks lower…than other opportunities’.

Commenting on the decision, David Palmer-Jones, Chief Executive Officer of SITA UK, said: "After careful consideration we have decided to withdraw from the North Wales procurement tender. The key reason is that upon review, in the current economic climate, this project ranks lower for us than our other opportunities. We would, however, like to wish the partnership every success for the future.”

Negotiations for the contract will now continue with the sole remaining bidder, Wheelabrator, and a decision on whether to appoint it as the preferred bidder will be made ‘over the summer’.

Wheelabrator’s plans include building an incinerator on the Deeside Industrial Estate in Flintshire and using a combination of road and rail to transport the waste.

A spokesperson for the NWRWTP said: "[We] can confirm that one of the remaining two bidders in the procurement process, SITA UK, has informed us that they are withdrawing from the process.

“The three year procurement process is reaching the stage of closure of 'competitive dialogue'. A final selection decision between SITA UK and Wheelabrator Technologies Incorporated – the two bidders selected for the final stage of competitive procurement from the original seven – had been planned to be made over the summer.

“Both bidders had submitted highly competitive bids with competitive pricing offers and proven technological solutions. Negotiations will now continue with Wheelabrator alone before a final decision is made on whether to appoint them as the preferred bidder."

The spokesperson added that they ‘fully anticipate’ to appoint a preferred bidder.

Overcapacity

This long-term incineration plan has caused concern with local councillors and residents who believe that emissions from the incinerator could cause health problems.

Deputy Council Leader Bernie Attridge for Connah’s Quay, said: “I have significant concerns for the health and wellbeing of the residents of Deeside. I will continue to press for absolute assurances over the impact of emissions.”

Further fears centre around the growing overcapacity of incinerators in relation to falling residual waste figures. Concerns of the UK and Europe’s preference for long-term incineration contracts have mounted recently as both Eunomia and the Global Alliance for Incinerator Alternatives have released reports on overcapacity, the latter stating that the numbers of incinerators in the UK and EU have the capacity to burn ‘more than the non-recyclable waste generated’ and could ‘threaten’ recycling rates as recyclable material would be needed to ‘feed’ the plants.

The NWRWTP was established with the purpose of enabling Welsh authorities to deliver the government's 'Towards Zero Waste' strategy (which aims to make Wales a ‘high recycling nation’ by 2025 and a zero waste nation by 2050), and finding a more sustainable and cost-effective solution for dealing with residual waste.

Read more about the North Wales Residual Waste Treatment Project.