Monday 4 March 2013

Viridor recommended for Brent's recyclate sales contract

The Brent Executive will be asked to approve the award of the contract for the processing and sale of recyclable material collected by the Council to Viridor Waste Management Limited. Currently this service is provided by Veolia but market testing by the Council suggested that the service did not provide good value so they put it out to tender.

The Council recognises that there is a high level of risk attached to the contract because of the unpredictability of tonnages collected and the amount paid for recyclates. They note:

In terms of improvement from the current position, this price creates an overall benefit that ranges from £448,625 if there is no increase in tonnage next year to £533,500 if 22,006 tonnes are collected. There is no certainty around waste arisings and the council cannot rely on a guaranteed level of income .

This presents a high level of risk. Next year’s waste budget has been set on the basis that
22,000 tonnes of recyclables will be collected. Any shortfall in that level of recycling which comes about through failure to divert recyclables from the residual waste stream will come at a cost of £107.25 per tonne. A 1,000 tonnes shortfall will cost £107,250, and only achieving 18,500 tonnes would cost £375,375 of the proposed saving. Only achieving present recycling levels will deliver £448,625 - £375,375 = £73,250 saving against planned budgets, whilst diverting 22,000 tonnes in total would deliver the full £533,500.
Currently the procurement process is under way for the new Public Realm contract covering waste management, recycling, street cleanings and parks and BHP grounds maintenance. 

1 comment:

Trevor said...

Judging by the fact that Despite whoever has the current contract for basically collecting the trash of our streets etc and yet wembley continues to look as if there is no street cleaning service at all
I'll be very surprised if this new contract will make much difference to waste management on whole.
I mean look at the amount of money we pay in council tax every year which will likely go up this year and yet if you walk around wembley you will see rubbish that has been ignored despite the fact we pay for a street cleaning service.
even in the new park on chalk hill road is starting to be used as a make shift dust bin...I noticed that as I walked past it yesterday afternoon.
It's really sad.