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Suez awarded £120m contact with South Gloucestershire

South Gloucestershire has signed a new eight-year contract with Suez, which will see the company deliver kerbside household and commercial waste and recycling collections.

Due to commence in August 2025, the contract was signed following an extensive tendering process, and is subject to final ratification in November 2024.

The new contract, worth around £120 million, will replace the current 25-year Private Finance Initiative (PFI) when it expires.

Under the new contract, waste and recycling sorted by residents will continue to be collected from households using recycling containers. There will be upgraded in-cab systems for live reporting, communication with the crews and monitoring of day-to-day operations.

An app will also be launched for residents to use, making it quicker and easier to report issues, check collection days and provide general waste and recycling information.

South Gloucestershire has one of the highest recycling rates for a unitary authority in England with a current rate of 58.6%.

The Sort It recycling centres and waste transfer stations are not part of the new contract. When the current contract expires in July 2025, these will be managed directly by South Gloucestershire council, with staff working at those sites becoming employees of the council.

‘Technological improvements’

South Gloucestershire council cabinet member with responsibility for waste and recycling services, Sean Rhodes, said: “We are committed to delivering value for money services that meet the needs of our residents. Waste and recycling services are something that we all use. They are a very visible aspect of the work the council does, so it’s important we’re always looking to improve and reduce the cost of these services wherever possible.

“Technological improvements will make it easier to monitor the service, and for residents to access more information, quicker, and to report any issues.

“The council has now worked with Suez for a long time and this contract, which replaces an old, out of date PFI arrangement, will allow us to continue that partnership and continually improve the services that residents receive. The other major change will be the bringing back ‘in-house’ of the Sort It centres. Doing so will be more cost effective and, again, it will allow us to improve the service.”

The recommendation to enter a new contract with Suez will be considered for formal approval by Cabinet in November. Once agreed, work will continue to ensure a smooth transition to the new arrangements next summer.

John Scanlon, chief executive officer for Suez, said: “After a long and successful partnership with South Gloucestershire, we’re delighted to have secured the new contract to manage their household and commercial waste and recycling collections.

“With an added focus on social value in line with our triple bottom line approach, we will bring lasting benefits to local communities across South Gloucestershire over the eight-year life of the contract.”

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