Tender Ref PLACE310. The Rectification and Operation of the Derby and Derbyshire Waste Treatment Centre for the treatment of waste

Description

Derbyshire County Council and Derby City Council (“the Councils”) are seeking to appoint a contractor to provide services and works in respect of the Derby and Derbyshire Waste Treatment Centre at Sinfin Lane, Derby, DE24 9GF (“DDWTC”). The DDWTC is a treatment facility for the disposal of residual municipal waste collected by the Councils. The successful contractor will be required to: preserve the DDWTC whilst undertaking due diligence services; rectify, commission and optimise the DDWTC; and then continue to operate and maintain the DDWTC to provide waste management services from the facility. The opportunity comprises of two contracts; (i) a Preservation and Due Diligence Contract (“PDD Contract”); and (ii) a DDWTC Contract, which will cover the phases of the works and services summarised below and in the draft ITPD document, Background Document; Commercial Principles Table and the Finance Principles Paper available at www.eastmidstenders.org Lot 1: Continued from II.1.4) The DDWTC comprises of a Mechanical Biological Treatment for the drying of waste; a Mechanical Recovery Facility for the separation of recyclable materials; and a thermal treatment facility using Advanced Conversion Technology (ACT) (gasification) for the end disposal of residual waste. Heat produced by the ACT is used to generate electricity. The DDWTC is designed to treat 190,000 tonnes of residual waste a year. The Councils generate around 60,000 tonnes of additional residual waste per annum but this will be managed through a separate Contract and does not form part of this opportunity. The successful contractor will not be required to treat waste at the facility until steady operations have been achieved. Waste required for testing and commissioning (up to 190,000 tonnes per annum) will be provided by the Councils. The DDWTC is not currently operational. It is being preserved by an on-site operations team with the intention that the facility can be brought back into operation as part of this opportunity. As part of this procurement process, interested organisations will be provided with various survey information relating to the DDWTC to provide further information on the extent and nature of the works required to bring the DDWTC back into operation. Shortlisted SQ applicants will also be able to attend site visits of the DDWTC as part of the dialogue stage of the process. The PDD Contract will be a short term contract which will provide for the successful contractor to undertake due diligence services and preserve the current condition of the DDWTC, equipment and assets and provide security at the site. Access to the DDWTC will only be granted at this time and there are a number of activities that the successful contractor will need to complete under the PDD Contract. The PDD Contract activities will enable the successful contractor to inspect and survey the condition of the DDWTC to enable it to develop and finalise its rectification plan and fix critical plan for the DDWTC. This will support a financial investment decision to be taken by the Councils to approve the works. It is not anticipated that waste will be treated or electricity generated under the PDD Contract. The DDWTC Contract is the main long term contract for the project if the Councils approve the rectification plan solution. The DDWTC Contract will be a single contract based on a partnering approach and will deal with the rectification, optimisation, operation and maintenance of the DDWTC. The DDWTC Contract will only proceed through the various phases provided for in it if the successful contractor achieves certain pre-agreed levels of activity and where the Councils deem the project to remain commercially viable. During the DDWTC Contract, the successful contractor is anticipated to accept, process and treat up to 190,000 tonnes per annum of residual waste at the DDWTC. Further information can be found in the documents made available at www.eastmidstenders.org Additional information: The Councils reserve the right not to award the opportunity or to award only party (or a different arrangement) of the opportunity described in this contract notice.