Melbourne launches delayed waste tender PPP

10 March 2020 - 12:00 am UTC

Melbourne’s waste coordinating agency today launched a much-awaited two-year processing facility tender, which it said will be carried out in the PPP mode.

Bidders have under a month to respond to the expression of interest call, the Melbourne Waste Resource Recovery Group (MWRRG) said, adding that the technology chosen for its Advanced Waste Processing facility will depend on the proposals that are submitted.

The expression of interest documents state that the contract will involve designing, building, operating, maintaining and financing one or more facilities for 25 years to take non-recyclable waste from 16 councils in Melbourne’s south-east. The decision to stick with the public-private partnership mode for procurement retains the choice outlined in previous tender documents when it was looking for advisers.

So far, the only projects that have publicly stated they will bid for the tender are energy-from-waste plants AustralianPaper’s Maryvale Mill and ASX-listed Cleanaway.

The projects will initially need to process around 500,000 tonnes of residual municipal waste a year, but this is likely to rise to about 700,000 tonnes by 2046. However, the tender document states that any proposal will need to be “flexible” to deal with unforeseen changes in waste volumes and regulation. 

It also calls for bids to consider solutions that can deal with commercial and industrial waste.

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