Skanska consortium poised for UK waste project

A consortium teaming Skanska and AECOM has been named preferred bidder for a UK waste management project. Sweden-based Skanska says the project is worth almost £170m.

A long-running UK waste treatment project has named a consortium led by Skanska Infrastructure Development preferred bidder for a contract worth £170 million (€205 million; $270 million), according to a Skanska press announcement.

The Bradford and Calderdale Waste Partnership, created to service the 280,000-ton output of waste annually produced by the metropolitan area of Bradford and Calderdale, located in West Yorkshire, England, selected the Skanska consortium in December 2011, before making the preferred bidder appointment official yesterday.

The team combines Skanska and AECOM in a joint venture to share an engineering, construction and procurement contract, while Waste Recycling Group (WRG), an FCC business unit, will operate the facility for a 25-year timeframe.

Skanska will announce its official investment in the partnership at financial close, the Sweden-headquartered company said. The original contract was set to commence in 2015. Skanska is expecting financial close to take place later in 2012.

The selection of Earth Tank Skanska followed a several year-long bidding process that saw the partnership pare down a shortlist of four consortia, including:

-Aire Valley Environmental, comprised of energy-to-waste specialist Covanta and water utility Kelda Waste Services;

-Osiris, pairing John Laing and construction outfit Costain; and

-3SE, comprising Shanks, a waste management provider, and Southern Energy.

The public-private partnership (PPP) will comprise a resource recovery facility operating in Bradford and processing all residual waste and renewable material, such as metal, plastic, paper and cardboard, for both Bradford as well as Calderdale. The remaining waste will then be thermally treated in the energy recovery plant, producing electricity slated to be fed into the national grid, Skanska said. 

A website for the partnership explained Bradford and Calderdale “face the same problem in dealing with waste and have therefore entered into a partnership”. The partnership received £62 million in private financing initiative (PFI) support in 2008.