Issue details
Waste Disposal Extension, Variation and updated Joint Working Agreement
The Waste Management Services PFI Contract
(WMSC) between Herefordshire Council and Worcestershire County
Council and Mercia Waste Management Ltd (Mercia) was signed in
December 1998 for 25 years. It is important to recognise that the
WMSC was for an integrated solution to be delivered by Mercia for
the disposal of all Local Authority Collected Waste (LACW), known
as ‘Contract Waste’ arising within the two
counties.
The original procurement process undertaken prior to the award of
the WMSC envisaged a contract of up to 30 years. The WMSC also
includes contractual mechanisms for the proposed extension. There
is nothing within the current WMSC which would preclude the
proposed variation to the contract to deliver the defied outcomes
from the Integrated Waste Management Strategy.
On 25 November 2021 Cabinet approved both the new waste collection
service model and for the council to progress Mercia’s
proposal for extending the duration of the WMSC for a period of
five years until 11 January 2029 by entering into a variation of
the existing WMSC.
Since November 2021 significant due diligence has been undertaken
with support from specialist legal, finance and technical
consultants on the proposed extension and variations to the
WMSC.
Through the contract extension and variation Mercia have commit to
defer taking sufficient commercial waste to enable a reduction to
just 1% of Herefordshire’s waste going to landfill from
2022.
On 28 November 2022 the Council jointly published a Voluntary
Ex-Ante Transparency (VEAT) Notice in order to provide voluntary
prior transparency.
In order to undertake the extension and variation the Joint Working
Agreement between Worcestershire County Council (WCC) and
Herefordshire Council has been updated to reflect the extended term
of the WMSC and future arrangements between WCC and the
Council.
Decision type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 02/02/2023
Decision due: 12 December 2022 by Director of Resources and Assurance
Contact: Andrew Lovegrove, Director of Resources and Assurance Email: Andrew.Lovegrove@herefordshire.gov.uk.
Decisions