Sita consortium poised for £900m UK PPP

A grouping made up of Sita UK, Lloyds Banking Group and Itochu Corporation has been named preferred bidder for a West London waste contract.

A consortium led by Sita UK, a subsidiary of French utility Suez Environnement, has been awarded preferred bidder status for a £900 million (€1.1 billion; $1.4 billion), 25-year energy-from-waste contract by West London Waste Authority. 
The consortium also includes the UK’s Lloyds Banking Group and Japanese trading company Itochu Corporation. 
The contract is to manage up to 300,000 tonnes of household waste each year generated by the West London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames. The deal will see Sita UK take over the operation of two rail-linked waste transfer stations in West London.
Waste collected from more than 1.4 million residents will be transported by rail from West London to a new energy-from-waste facility in Severnside, South Gloucestershire. A Sita UK statement claimed this would save 83,000 tonnes of carbon dioxide emissions each year. 
The Severnside facility – known as the Severnside Energy Recovery Centre – has planning permission and will generate enough electricity to power 50,000 homes. It may also supply hot water to local businesses. Total capital investment in the facility is expected to be over £240 million. 
Sita UK has become a prolific winner of public-private partnership (PPP) contracts with UK authorities, with Surrey, South Gloucestershire, Kirklees, Cornwall, Northumberland, Aberdeen, the Isle of Man and Teesside already under its belt. Last month, it led a consortium that was named preferred bidder for a £1.18 billion contract with the Merseyside Recycling and Waste Authority.