1. www.hertsdirect.org Hertfordshire Waste Procurement Programme – Progress Report Peter Davidson Programme Director 9 September 2009

2. www.hertsdirect.org Current waste performance 555,000 tonnes municipal waste per annum 44% recycled or composted (household waste) 50% to landfill, mostly outside Hertfordshire 6% to Edmonton EfW Costs over £50m per annum to collect and dispose 25% of all Hertfordshire’s Waste

3. www.hertsdirect.org The drivers for change Landfill space running out – 1 left in County Landfill Tax significantly increasing costs - £8 per tonne per year Landfill Allowances + Trading Scheme sets maximum levels Set against a background of increasing recycling – 50% by 2012

4. www.hertsdirect.org The response JMWMS 2007 – launched November 2007 Feasibility study started November 2007 Expression of Interest March 2008 Outline Business Case October 2008 £115 million of PFI credits allocated March 2009 Solution needed by 2015

5. www.hertsdirect.org The reference case for PFI Credits 270,000 tonnes Energy from Waste + Combined Heat and Power County Council owned site at New Barnfield, South Hatfield 2 transfer stations 75,000 tonnes “potentially untreatable” waste

6. www.hertsdirect.org What is required from the market A solution to treat up to 270,000 + 75,000 tonnes of residual waste at 2039/40 All of residual waste arisings Technology neutral - solution will need to be long term, proven, flexible and reliable CC owned site not mandatory Recovery of energy – heat and/or electricity

7. www.hertsdirect.org Progress to date OJEU Notice published 9 April 2009 Pre-Qualification Questionnaire Bidders Day – 30+ Companies attended 13 Applicants – large companies + consortia International interest with a range of experience 6 Applicants short-listed + Invited to Submit Outline Solution (s)

8. www.hertsdirect.org Short-listed companies Covanta E.ON Energy from Waste AG (EEW) MVV Umwelt GmbH Shanks PFI Investments Ltd / Wheelabrator Technologies Inc SITA UK Limited consortium Veolia ES Aurora

9. www.hertsdirect.org Competitive Dialogue timetable Prescribed process – Public Contracts Regulations 2006 Outline Solutions (ISOS) June – October 2009 Detailed Solutions (ISDS) November 2009 – October 2010 Final Tenders (CFT) October – December 2010 Selection of Preferred Bidder April 2011 Contract and Financial Close August 2011 Town Planning May 2012 Operational Plant April 2015

10. www.hertsdirect.org Supporting work Preparing New Barnfield as the reference site CHP Feasibility Study Securing transfer arrangements Working with Hertfordshire Waste Partnership Managing communications Interim Waste Contract – less landfill, greater use of alternative treatments

11. www.hertsdirect.org Key messages County Council requires a cost-effective solution for the management of residual municipal waste Procurement process is very prescribed Dealing with commercially sensitive information The Reference Case is a benchmark for evaluation The market will provide the solution The position may not become clear until Preferred Bidder appointed