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25 year waste transformation in first shared services contract for Scottish councils

18th May 2016

Post-recycling black bag waste from five Scottish local authorities is set to be transformed in a partnership, the first of its kind in Scotland, with recycling and waste management company Viridor.

Aligned with waste reduction, reuse and recycling the £700 million partnership will divert waste from landfill by capturing recyclable materials from residual waste before recovering renewable energy from what remains.

North Lanarkshire Council, as the lead authority on behalf of East Dunbartonshire, East Renfrewshire, North Ayrshire and Renfrewshire Councils, has signed a contract with Viridor following a competitive tendering process.

The contract will see around 190,000 tonnes of residual waste processed each year, diverting over 90% of the partner councils’ waste from landfill as well as producing a Refuse Derived Fuel which can be used to generate renewable energy.

Councillor Jim Logue, Leader of North Lanarkshire Council, said:

“This is an important contract in terms of the scale of waste processing and environmental benefits, but also as the first partnership between Scottish local authorities arising from Sir John Arbuthnott’s review of shared services.

“By working in partnership, we are delivering improved services for residents, best value for tax payers, creating new jobs and recycling more waste which would otherwise go to landfill.”

The contract begins on 1 December 2019. Waste will be transported a new £22m Viridor treatment facility at Bargeddie, North Lanarkshire where recyclable material will be extracted and the Refuse Derived Fuel taken to the company’s £177m energy recovery facility at Dunbar, East Lothian.

Paul Ringham, Commercial Director for Viridor, said:

“Viridor’s partnership will transform waste across the Clyde Valley. In addition to best value and driving a low-carbon future focussed on landfill diversion, the partnership will deliver real economic and community benefits. From next-generation infrastructure to jobs, supply-chain opportunities and an innovative education partnership, our team is ready for the work ahead.”

Chris Owens, Infrastructure Senior Associate at Pinsent Masons, who provided professional legal advice to the five local authorities during the tendering process, added:

“We are delighted to have played a pivotal role in such a significant multi-authority project, adding to our market leading experience of multi-authority waste projects in Scotland and the wider UK sector. The project will be transformational for the partner councils, providing a reliable long-term waste treatment solution which will help them to play their part in achieving Scotland’s zero waste aspirations.”

Saeefar Rehman, Associate Director, Energy and Environment at Grant Thornton, independent professional financial advisers to the partner councils, said:

“This innovative and exciting new project is set to create a strong, sustainable future for the waste services sector in Scotland and we are thrilled to have been able to support the Clyde Valley Councils throughout the process.

“As the first shared services contract for Scottish councils this project demonstrates the huge benefits that can be generated through collaborative working between councils. The contract is set to hugely increase both the efficiency and productivity of the councils’ waste processing systems, but also greatly support the local community, through the introduction of new jobs and improved services for residents.

“As part of our firm’s vibrant economy campaign we are committed to helping local councils rethink the way they operate and looking at how better collaboration and innovation in the sector can help build stronger public services for the future.”

Derek Rooney, Technical Director, SLR Consulting Ltd, independent professional technical advisers to the partner councils added:

“It is wonderful to see five Scottish Local Authorities working together to deliver the Clyde Valley Residual Waste Project. It has taken 3 years of negotiation to arrive at a solution which helps meet the ambitious environmental targets set by the Scottish Government through the diversion of 190,000 tonnes of residual waste away from landfill for additional recyclate recovery and energy production.”

For further information on how Viridor is helping UK councils transform waste, visit here.


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