UK-Port Talbot: refuse and waste related services

The provision of waste management services to Neath Port Talbot County
Borough Council on behalf of itself and Bridgend County Borough Council
and the sale of the share capital of Neath Port Talbot (Recycling)
Limited.
Neath Port Talbot County Borough Council (the Council) discharges certain
waste disposal functions on behalf of itself and Bridgend County Borough
Council (Bridgend). Neath Port Talbot (Recycling) Limited (NPTRL) (a
wholly owned subsidiary of Neath Port Talbot Waste Management Co. Limited
(NPTWML) which is in turn wholly owned by the Council) currently provides
waste disposal services to the Council in respect of those waste disposal
functions at the Materials Recovery and Energy Centre (MREC) at Crymlyn
Burrows. NPTRL also provides the management of the Council’s food waste,
garden waste and recyclables at the MREC.
NPTRL is the current operator and regulatory permit holder of the MREC.
In 2010, the Council undertook a market sounding exercise to investigate
whether there was any market interest in the possible acquisition of,
amongst other things, NPTRL. Following that exercise, in 2011 the Council
committed to join the South West Wales Regional Waste Consortium’s 25 year
residual waste procurement (the Regional Procurement) which will commence
in mid 2012 with a planned service commencement date expected to be during
2018.
The South West Wales Regional Waste Consortium comprises Councils in South
West Wales and is likely to be seeking a contract for the treatment of
residual municipal waste generated by the Consortium.
The Council and NPTWML are therefore now seeking tenders for the
management of residual waste from both the Council and Bridgend (the
contract) together with options as listed below for a short term period of
circa six (6) years to tie in with the planned service commencement date
for the Regional Procurement in 2018 and the acquisition of the entire
issued share capital of NPTRL from NPTWML. The letting of the contract and
the disposal of the shares in NPTRL will take place at the same time and
are not mutually exclusive elements.
The contract.
The contract will cover the following elements:
(1) the treatment and onward disposal of residual waste from both the
Council and Bridgend until the provision of the South West Wales
Procurement Hub residual waste facility (March 2018 or later);
(2) the storage, bulking and onward transfer of, together with the
arrangement of suitable off-site treatment for, food waste collected by or
on behalf of the Council, until the provision of the South West Wales
Procurement Hub anaerobic treatment (AD) facility (provisionally planned
for September 2014);
(3) the storage and bulking of food waste collected by the Council
following the provision of the South West Wales Procurement Hub anaerobic
treatment (AD) facility.
Organisations interested in participating in this tender process
(Interested Organisations) are asked to note that the Council is prepared
to consider letting the Contract to NPTRL or to the successful tenderer or
to a Special Purpose Vehicle set up by the successful tenderer for this
project (SPV) and NPTWML is prepared to consider disposing of its
shareholding in NPTRL to the successful tenderer or to the SPV. The
Council is also prepared to consider the treatment of the residual waste
referred to in (1) above taking place somewhere other than the MREC.
Whether or not the treatment of the residual waste referred to in (1)
above is to be carried out at the MREC or elsewhere, NPTRL/the successful
tenderer/the SPV (as the case may be) will be required to maintain the
MREC as the sole delivery point for the waste streams referred to in (1)
to (3) above. In the case of (3) above, the Hub contractor will be
required to collect the food waste from the MREC.
The contract may also include the management of dry recyclables and garden
waste collected by or on behalf of the Council and delivered to the MREC,
see further Section II.2.1 below. If the contract does not include the
management of dry recyclables and garden waste collected by or on behalf
of the Council and delivered to the MREC, the contract will include an
option for the Council to remove the management of food waste from the
contract.
For more information relating to the services please refer to the
Council’s memorandum of information in respect of this project (the
Memorandum of Information). The details for obtaining a copy of the
Memorandum of Information are set out below.
Interested Organisations should also note that:
The Council reserves the right not to award the contract; and.
The proposed Contract start and end dates in Section II.3 below are
indicative dates only and may be subject to amendment.
The sale of NPTRL.
As outlined above, as an integral part of this project NPTWML is proposing
to sell NPTWML’s shareholding in NPTRL under a share purchase agreement
which will be separate to the contract, but which will be entered into at
the same time as the contract.
The disposal of shares in NPTRL is considered to be an exempt financial
promotion within the meaning of Part VI, Section 62 of The Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005, because
the object of such disposal is the acquisition of day-to-day control of
NPTRL by a third party.
NPTWML reserves the right not to sell all, or any, of the shares of NPTRL.
Lease(s).
At the same time as the Contract is let to NPTRL/the successful
tenderer/SPV (as the case may be) and NPTWML disposes of its shareholding
in NPTRL to the successful tenderer/SPV (as the case may be), the Council
will grant a lease or leases (as the case may be) of the relevant part (or
parts) of the MREC on commercial terms. Whether or not the contract
includes the management of dry recyclables and garden waste collected by
or on behalf of the Council and delivered to the MREC, the Council will
grant a lease to NPTRL/the successful tenderer/SPV (as the case may be) of
the office block and process building at the MREC during the term of the
contract with an option to extend this lease beyond the expiry of the
Contract, on the terms set out in this lease, so that NPTRL/the successful
tenderer/SPV (as the case may be) is able to take advantage of these
premises in any future procurement process (including the Regional
Procurement) that it may wish to seek to participate in.
If the contract includes the management of dry recyclables and garden
waste collected by or on behalf of the Council and delivered to the MREC,
the Council will also grant a lease of the recyclables storage building at
the MREC to NPTRL/the successful tenderer/SPV (as the case may be) for the
term of the contract. This lease will not include any option for NPTRL/the
successful tenderer/SPV (as the case may be) to extend this lease beyond
the term of the contract.
The Council reserves the right not to grant any lease in respect of the
MREC or any part of the MREC.
Further information.
Further information is set out in the Memorandum of Information.
Interested Organisations are required to complete and submit a
pre-qualification questionnaire (“PQQ”) by the date set out in Section
IV.3.4 below.
Copies of the Memorandum of Information and the PQQ are available from the
Council. To obtain a copy of those documents please contact Pamela
Milford, Principal Procurement Officer, at the following email address:
p.milford@npt.gov.uk.
Community benefits do not apply to this contract.
CPV: 90500000, 90510000, 90513000, 90513100, 90513200.