Aberdeen City Council, Aberdeenshire Council and Moray Council (together hereinafter referred to as the ‘Partner Councils’) are seeking to procure residual waste management services to receive and treat residual municipal waste, managed by or on behalf of the Partner Councils. The Partner Councils intend to fund the capital investment required.
The Partner Councils are seeking to procure residual waste management services to receive and treat residual municipal waste, managed by or on behalf of the Partner Councils.
It is estimated that the Partner Councils will require treatment and disposal services for approximately 150 000 tonnes per annum of residual municipal waste. The Partner Councils are willing to discuss a Guaranteed Minimum Tonnage (GMT) and/or exclusivity over the Partner Councils' Residual Municipal Waste if this represents best value. This will be discussed during dialogue. The Contractor will be required to accept Contract Waste at a facility to be designed, built and operated on a site, owned by the Partner Councils at East Tullos industrial Estate, Aberdeen (the ‘Site’). Planning permission to build an EFW Facility on the Site was granted by Aberdeen City Council on 10 October 2016. Link to the Planning Permission:
The construction costs will be financed by the Partner Councils.
The Contractor will be required to accept and treat all Contract Waste from the commencement of the service period of circa 20 years which will be preceded by a construction period of up to 3 years. Under the project agreement to be entered into by Aberdeen City Council, as Lead Authority and the preferred bidder, Contract Waste may also include residual municipal waste from other Local Authorities established under the Local Government (Scotland) Act 1994 and any successor bodies (‘Associated Council’).
It is currently anticipated that contract commencement will be August 2018.
The Partner Councils reserve the right to require Bidders to submit tenders for a full operational period of longer than 20 years if a longer period is justified on the basis of value for money considerations.
The exact capacity requirements, date for service commencement and contract length will be ascertained during the dialogue.
It is envisaged that the contract will be based on the latest HM Treasury and DEFRA/ WIDP guidance for waste projects, any other relevant guidance issued by the Scottish Government and/or the Scottish Futures Trust, with relevant amendments to reflect project specific requirements and the Partner Councils funding of construction costs.
It is envisaged that the contract will include:
— to the extent necessary to deliver the preferred bidder's technical solution, the design, construction, commissioning, licensing, permitting, operation and maintenance of residual municipal waste reception and treatment facility(ies) for the processing of residual municipal waste to produce energy, to meet the targets and the requirements of the Partner Councils via a design, build, and operate approach;
— the working capital costs required for the Project, recognising that the Partner Councils will fund the construction costs through milestone payments during the construction period. The detail of these arrangements will be discussed with Bidders during dialogue.
The Partner Councils are committed to securing community benefits from major procurement programmes and will require the Contractor to work with the Partner Councils, as part of the delivery of the Contract to deliver such community benefits.