Three major firms make shortlist to run controversial Derbyshire waste treatment centre

Derbyshire County and Derby City councils originally agreed to pay the settlement to Resource Recovery Solutions’ waste management team’s administrators after the councils terminated a contract for the waste management team to manage their jointly-owned waste facility, at Sinfin, Derby.

The county council has revealed this week that after considering initial bids for a contractor to fix and operate the facility, Biffa, Thalia and Viridor have been identified by Derby City Council and Derbyshire County Council as the most suitable companies to move forward to a ‘Competitive Dialogue’ phase in the procurement process to appoint a contractor.

A county council spokesperson said: “We were confident we had developed a procurement process and commercial proposition that would be attractive to the right companies.

“Shortlisting three major players in the UK waste market proves there’s a competitive market for this project, and operators with the skills and experience to successfully deliver it and its expected benefits.

“Fixing and operating the facility was found to be the most viable, cost-effective, and sustainable long-term solution to manage household waste which residents in Derby and Derbyshire either cannot or choose not to recycle.”

Both councils say they are committed to fixing and operating the temporarily-closed waste treatment facility to encourage residents to reduce, reuse and recycle more of their waste.

Market testing undertaken in 2023 confirmed there was capability, capacity and appetite in the market to deliver the project, according to the county council, and the exercise to shortlist bidders is underway and is expected to lead to the award of a contract in December, 2025, with the commissioning of the facility in June, 2028.

It is anticipated the waste treatment centre will start to accept waste again from across the city and county between 2028 and 2031.

Originally, Derbyshire County Council and Derby City Council had awarded a contract in 2009 to Resource Recovery Solutions – which was a partnership between infrastructure firm Interserve and waste management company Renewi – to manage the councils’ residual waste, design, build, commission, and operation of the waste treatment facility in Sinfin, Derby.

However, the county council revealed, in July, 2023, that both councils had agreed to each pay a share of a total £93.5m out-of-court settlement to RRS’s waste management team’s administrators to resolve a dispute after the local authorities had terminated a contract with the waste management team to manage the waste facility.

Derbyshire County Council stated RRS had originally paid for the facility which under the county and city councils’ original contract with RRS was to be designed, built and completed in 2017 to divert 190,000 tonnes of waste per year away from landfill.

But the county council added that after RRS failed to pass commissioning tests by an agreed date the authorities lawfully terminated the contract in August, 2019, and the councils and RRS began a process to determine the Adjusted Estimated Fair Value compensation of the contract to be awarded to either RRS or the councils.

Both councils resolved in July, 2023, to accept an out-of-court settlement arrangement and pay RRS £93.5m to protect council tax-payers from the risk of further significant costs after RRS’s administrators had originally claimed they were owed £187m, according to the county council.

Derbyshire County Council had stated this total settlement sum of £93.5m had been shared by the councils in accordance with an agreed split with £36.57m paid by the city council and £56.93m paid by the county council.

Following the resolved settlement dispute, the county and city councils also had their own disagreement over a county council issued invoice to the city council for £93.9m plus VAT for project costs but after an Inter Authority Agreement was reached both have reaffirmed their joint commitment to reviving the waste treatment centre.

Derbyshire County Council previously confirmed the £93.9m plus VAT invoice was to recover the county council’s share of the costs of the waste site project and this was separate to both councils’ shared £93.5m settlement figure which was previously agreed to be paid to RRS’s administrators.

The shortlist of three potential waste management firms as part of efforts to establish a contractor to run the site marks a significant step, according to the county council, in the councils’ project to secure a long-term waste management solution for Derby and Derbyshire, ensuring efficiency, sustainability, and value for residents.

Over the next six months the councils and selected bidders will enter ‘Competitive Dialogue’ for all three companies to clarify, specify and enhance their proposed solution to fix and operate the facility.

The county council stated the process enables both the councils and bidders to assess approaches and ensure opportunities that strike the right balance between cost and quality.

A timeline for the next steps in the procurement include: Competitive Dialogue – October 2025; Contract award with a Cabinet decision – December 2025; End of due diligence and commencement of rectification phase – June 2027; Start of commissioning – June 2028; First waste acceptance – November 2028; Completion of commissioning and transition to normal operations – Winter 2028 – Winter 2031.

A Derby City Council spokesperson said: “This is an important milestone in our commitment to securing a sustainable and cost-effective waste management solution for Derby and Derbyshire.

“Reaching this stage with three leading waste management companies demonstrates both the strength of our approach and the level of industry interest in this project.

“The council is keen to ensure a sustainable way to dispose of residents’ waste in the long term and seeks to find the most cost effective solution.”

Campaigners and residents have also previously complained that the Sinfin waste site will pose a threat to air quality.

Both councils have stated they remain committed to a transparent and thorough process to ensure the best possible outcome for waste management in Derby and Derbyshire.