Viridor Withdraws from Sinfin Waste Plant Procurement Process

Strategic Insights -

Derby city and Derbyshire county councils had identified three major waste management firms - Biffa, Thalia, and Viridor - to move forward in the competitive dialogue phase to fix and operate the controversial Sinfin Waste Plant. However, Viridor has unexpectedly withdrawn from the process, leaving Biffa and Thalia to continue with the procurement process. The creation of the waste plant has been marred by disputes between the two authorities, resulting in the then leader of Derby City Council being voted out of office. Despite the long-running saga, the two councils remain committed to a multi-million-pound plan to get the plant operational.

Key Takeaways:

  • Viridor, one of three companies selected to bid for the Sinfin Waste Plant contract, has withdrawn from the procurement process.
  • The competitive dialogue phase, which involves structured discussions with the remaining two companies, Biffa and Thalia, will continue to clarify and enhance their proposed solutions.
  • The Sinfin Waste Plant project has been plagued by disputes between Derby city and Derbyshire county councils, resulting in a £93.9 million invoice being issued by the county council to the city council.
  • The two councils have reached an agreement on the terms of a new Inter-Authority Agreement, resulting in the withdrawal of the invoice.
  • The city council has refused to disclose the details of the agreement.
  • The councils are committed to a multi-million-pound plan to operationalize the Sinfin Waste Plant, despite previous estimates suggesting it would cost at least £70 million and might not be possible.
  • The withdrawal of Viridor from the procurement process may impact the timeline for the completion of the Sinfin Waste Plant, which is expected to start commissioning in June 2028 and complete by winter 2031.

Statistics:

  • The Sinfin Waste Plant was originally designed to process 190,000 tonnes of waste per year.
  • The termination of the RRS contract in 2019 led to a dispute over the "adjusted estimated fair value" of the contract, with RRS seeking £187 million in compensation.
  • The two councils settled out of court for a payment of £93.5 million, with the county paying £56.93 million and the city paying £36.57 million.
  • The current procurement process is expected to be completed by December 2022, with one of the remaining two companies - Biffa or Thalia - awarded the contract.

Sources:

  • ZENA HAWLEY, "Biffa, Thalia and Viridor all in running to fix Sinfin Waste Plant," No specified publication, No specified date, cited in the original article.
  • Derby City Council press release, "Sinfin Waste Plant: Two leading waste management companies to progress to competitive dialogue phase," No specified date, cited in the original article.
  • Derbyshire County Council press release, "Sinfin Waste Plant: Two leading waste management companies to progress to competitive dialogue phase," No specified date, cited in the original article.
  • "Resource Recovery Solutions (Derbyshire) Ltd (RRS) press release, "Sinfin Waste Plant: Contract termination and compensation dispute," No specified date, cited in the original article.