[*Updated on 26.7.22 at 16:22] Letsrecycle.com previously reported the deals were worth £241 million, as per the figures published in official documents. However, Derbyshire has now confirmed the numbers involved have changed since the publication of a contract award notice, as these were based on “estimates”.
Waste management company Renewi UK Services has worked for Derbyshire under a ‘continuity services’ contract since 2019 following the collapse of the Sinfin project (see letsrecycle.com story).
From 3 October, Leeds-based Associated Waste Management (AWM) will manage and dispose of the waste passing through Derbyshire’s transfer stations.
AWM’s contract will last an initial two years but can be extended by an additional three years. It is worth £172.5 million if it runs for the maximum five-year period, according to the councils. Previously, the contract was estimated in the official documents to be worth £145.5 million.
HWRCs
The councils have also awarded Alfreton-based HW Martin a contract worth £64 million to operate the county’s eight HWRCs, as well as another within the city of Derby. The official documents estimated the deal as being worth £65-70 million.
HW Martin’s contract for the provision of HWRC management services also begins in October and lasts for a period of seven years, with the option to extend it by an additional three-year period, Derbyshire told letsrecycle.com.
The deal also covers the procurement and ongoing maintenance of approximately 200 skips for use at the sites.
HW Martin was the only company to bid for the contract, according to the official documents. Derbyshire disputes this.
Further information relating to the contracts is expected to be released by the contractors concerned soon as they prepare for implementation.
Clover Nook
Under its contract, AWM will receive, bulk and dispose of local authority-delivered waste at the Clover Nook transfer station, near Alfreton.
AWM will also dispose of waste from the Waterswallows transfer station, which is based near Buxton and operated by Suez UK, as well as several transfer stations operated by FCC Waste Services (UK).
AWM have committed to diverting an average of 80% of the waste from landfill during the two years of the contract, Derbyshire told letsrecycle.com. The official documents suggested the councils would not permit AWM to landfill more than 15% of the waste covered by the contract. It is thought AWM will send much of Derbyshire’s residual waste for energy recovery rather than to landfill.
Beauparc-owned AWM, described as an SME, was the only company to bid for the lot, the official documents say.
Transfer stations
As part of AWM’s contract for the provision and operation of waste transfer stations and the disposal of waste, the councils also awarded two lots to FCC.
This will see the Spanish-owned waste management company provide 60,000 tonnes of waste transfer station capacity in the north-east of the county and 110,000 tonnes of capacity in the south-east, including Derby city council.
The deal covers all waste streams, including hazardous waste, from all the Derbyshire councils and Derby.
If both contracts run for their maximum five-year periods, the north-east Derbyshire lot is worth £4 million, according to the county council, while the southern Derbyshire lot is worth £7.5 million. Previously, the former was estimated to be worth £8.5 million and the latter £17 million, the official documents showed.
Derbyshire
Representing an estimated population of nearly 800,000, Derbyshire county council had a household waste recycling rate of 45.1% in the 2020/21 financial year.
Derbyshire has a chequered history when it comes to the management of its residual waste. Resource Recovery Solutions (RRS), a partnership between Renewi and infrastructure firm Interserve, signed a 27-year, £900 million waste treatment contract with Derbyshire county council and Derby city council in 2009 (see letsrecycle.com story).
The deal included providing five transfer stations and building and running a 190,000-tonne capacity energy from waste (EfW) plant in Sinfin, Derby. However, the councils brought the contract to an early end in August 2019 after problems with the plant (see letsrecycle.com story).
The councils then gave Renewi the two-year ‘continuity services’ contract. Initially due to end in February, Renewi’s deal was extended last November.
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