Derbyshire County Council launches PIN for long-term waste disposal project

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The Derbyshire County Council and Derby City Council have issued a prior information notice for its planned retender of a long-term waste disposal project under the Public-Private Partnership (PPP) model.

The project, with an estimated investment cost of about GBP950 million (US$1.15 billion)  involves the management, operation, and maintenance of nine regional Household Waste Recycling Centres (HWRCs) and the management of the Derby City Council and the third party owned transfer stations, as well as the transportation of residual waste and its treatment and disposal. The latter encompasses the construction, operation, and maintenance of the Sinfin Lane New Waste Treatment Facility (NWTF) which is an Energy from Waste (EfW) gasification plant including a Material Recovery Facility (MRF), Mechanical Biological Treatment (MBT) and education center.

The objective of the retendering procedure, if that route is open to and adopted by the Councils, would be to establish and pay to RRS the Highest Compliant Tender Price (as defined in the contract) and for the Councils to appoint a new contractor to deliver the services under a new contract (as defined in the contract). The contract was entered into between Resource Recovery Solutions (Derbyshire) Ltd (‘RRS’) and the Councils on December 8, 2009. 

The potential retendering follows the issue of a notice, served on the funders of the contract, on April 10, 2019, inviting them to step into the project. If the funders decide against taking action, then the Councils may bring their contract with RRS to an end and will then have an option to retender the contract (provided that there is a liquid market for PFI or PPP or similar contracts for services the same as or similar to those provided under the contract). Should a retendering take place, it would be done in accordance with the terms of the contract which requires that the Unitary Charge is, subject to some adjustments under the contract, made available in order to provide Services. The expiry date for any retendered contract would be March 31, 2042.

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