A company has filed a legal claim after being disqualified from a bid for a £300m waste incinerator in Teesside, raising concerns over the procurement process.
Hartlepool Council is leading the procurement for the Tees Valley Energy Recovery Facility (TVERF). They say they’re disappointed with the legal action. The council plans to defend their decision. Green Recovery Projects is looking to recover costs, which could be as high as £10 million.
The drama unfolded just before the council decided to remove them from the bidding. They were worried that Green Recovery Projects couldn’t meet the necessary requirements. Now, only one bidder remains: Viridor, a waste management company.
The TVERF will handle 450,000 tonnes of household waste each year for seven councils. These include Redcar and Cleveland, Hartlepool, and others. The project is set to be built on the Grangetown Prairie site at Teesworks.
The council insists the procurement process is still active. They believe they’ve achieved their goals despite the hiccup. They had previously informed Green Recovery Projects that they needed an engineering partner to proceed. When they found out that Green Recovery Projects didn’t have one, they offered more time, but none was requested.
After that, the company was disqualified. The council aims to find the best expertise for the project. They had invited bids after getting outline planning consent, and final tenders were submitted in March 2023.
However, the evaluation of those bids hit a snag due to delays in grid connection. This means the facility won’t be operational until at least 2029. The council expects to receive an optimized final tender soon, but it will only be from Viridor.
Tees Valley Mayor Ben Houchen has expressed concerns. He warned that if any councils pull out, it could jeopardize the entire project. He dismissed recent criticisms as mere noise. The successful bidder will design and build the plant, with councils paying a service fee over a long contract.
The TVERF is seen as a vital solution for waste management, aiming to divert waste from landfills. It’s considered a critical piece of infrastructure for the area.