Waste management procurement - model documentation and guidance from 4Ps

United Kingdom

In July the Public Private Partnerships Programme published the model documentation and guidance which is intended to assist local authorities and the waste management industry in delivering the new integrated approach to waste management in the UK.

The drivers for change are not new but due to uncertainty surrounding the government's approach to implementation and other legal and regulatory difficulties decisive action in responding to the changes has been slow in coming. This situation has become all too familiar with recent environmental legislation from Europe.

The drivers stem mainly from the Landfill Directive 99/31. The ban on disposal of liquid and other wastes to landfill, the ban on co-disposal and the requirements for pre-treatment which the Directive requires are all significant factors for UK waste management. However, the main development of concern to local authorities are the targets for the progressive reduction in the volumes of biodegrabable municipal waste (BMW) being disposed of in landfills. The "dash for incineration" that many predicted when the Directive was finalised has not materialised. The related issues of public concern and difficulties in obtaining planning permission to build incinerators have been two key factors behind this. Now that the government has imposed a system of tradable permits on local authorities to force reductions in the landfill of BMW the pressure in on the local authorities to find solutions.

It is widely recognised that the UK needs to develop an integrated system of waste management. Minimisation of waste, particularly from households, and developing systems for greater separation of wastes, reuse, recycling and a range of alternative treatment, recovery and recycling facilities are all important parts of this. The government is keen for local authorities to deliver such a system through PFI/PPP projects.

The result is that waste management is going to become an increasingly complex operation. Educating households in waste minimisation, changing and managing systems for collection and delivery of waste and installation and operation of new technology will all be complicating factors. To deliver the sort of projects envisaged by the 4Ps it is likely that waste management companies will have to invest significantly to expand their capabilities and/or develop strong consortia and relationships with subcontractors. This is, in turn, likely to result in a greater and more complex contractual structure behind the projects.

For further information please contact Daniel Chappell on +44 (0)207 367 2810 or at [email protected] or Paul Sheridan on +44 (0)207 367 2186or at [email protected]