The 10-year contract will go live from 27 June, and has been trumpeted by the leader of the Labour-run council, Cllr Chris Emmas-Williams, as a deal which “will be based in Amber Valley and not 450 miles away in France”. The reference to France is thought to be because while Veolia has a UK operation, the business ultimately heralds from France.
Joint venture
Under the terms of the new contract, the council will enter into a joint venture with Norse Commercial Services for the delivery of the waste collection and recycling services from from 27 June.
A new company, Amber Valley Norse Ltd, has been created with Dean Wetteland as managing director. Mr Wetteland is also chief executive of Norse Group.
Amber Valley council said when approving the contract in January 2020 that this would “give the council greater control and influence than a traditionally outsourced operation”.
‘Commercial approach’
The council added that the deal would “offer the opportunity to develop a commercial approach to service delivery with 50% profit share for the council”.
Norse will acquire a fleet of around 21 new refuse vehicles to service the contract, which also includes green waste and recyclable collections.
While the exact cost of the contract hasn’t yet been disclosed, it was reported locally that it would cost £3.76 million annually.
Amber Valley is the largest district council in Derbyshire and has a population of more than 126,000 people. It achieve a 32.9% recycling rate in the 2018/19 Defra figures.
‘Track record’
“I am confident we can build on this success and make further gains”
Justin Galliford, chief executive of Norse Commercial Services, said: “We have a proven track record of success in the waste collection arena, where we have shown we can deliver a very efficient and effective service for partnering authorities. I am confident we can build on this success and make further gains in this increasingly important field in the year ahead.”
Norse, which is 100% owned by Norfolk County Council, provides a range of services in England and Wales including facilities management, property services and residential care homes and employs more than 10,000 people.
The previous contract with Veolia was estimated to cost £2,470,000 a year, and was signed for an initial seven years in 2005. This was extended by a further eight years in 2012, before the procurement process began last year.
(Pictures: Alamy and Shutterstock)
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