ELWA's Waste Contract
   
   

A Future for Waste

In 1996, ELWA developed a strategy for dealing with the local area's waste for the next 25 years.

Known as the Integrated Waste Management Strategy, it was designed to get the best balance between costs and environmental impact. The draft strategy was the subject of two extensive rounds of consultation and the views of over 150 individuals and groups were received and taken on board in the development of the final plan. A full copy of the final plan is available to view and download from this website.

The Strategy considered all the available options for disposing of rubbish and four alternatives were identified:

  • Recycling
  • Organic treatments (Composting and anaerobic digestion)
  • Energy treatment (generating power through incineration)
  • Landfill

Click here to see the Advantages and Disadvantages of the available waste treatment options.

Two major factors emerged from the initial study. First, whichever option was chosen, disposal costs would significantly rise and second, continuing with a major landfill operation would be the most expensive method.

Once the Strategy had been finalised it was necessary for ELWA to put the theory into practice, through the letting of a 25-year integrated waste management service (IWMS) contract.

In the lead up to the commencement of the contract procurement process ELWA submitted an application for Private Finance Initiative (PFI) funding. At the time, the PFI was a fairly recent Government scheme for providing financial support for specific pathfinding and innovative projects involving public and private sector partnerships. ELWA's original application was submitted to the Department of the Environment, Transport and the Regions (DETR) in May 1998. Following discussions with DETR and Treasury officials a revised application was submitted and DETR announced in October 1999 that ELWA had been awarded £47m PFI funding. The successful bid meant that once the IWMS contract began ELWA would receive Government funding for the duration of the 25-year contract, which effectively reduces the cost of the new service to local taxpayers.

Once the decision on the PFI funding had been made, ELWA was in position to start the procurement process for the IWMS contract.

The 2½ year contract procurement process began in April 2000 with the placing of an advert, inviting interested companies to apply to go on the tender list. There were four main short-listing stages during the procurement process:-

  • Selection of tenderers to progress to Invitation to Submit Outline Proposals (ISOP) stage (July 2000)
  • Selection of tenderers to progress to Invitation to Tender (ITT) stage (December 2000)
  • Selection of tenderers to progress to Best and Final Offer (BAFO) stage (July 2001)
  • Selection of Shanks Waste Services Limited as 'Preferred Bidder' (March 2002)


Shanks Waste Services Limited was selected as 'Preferred Bidder' for the IWMS Contract at ELWA's meeting on 18 March 2002. To view ELWA's announcement of Shanks' selection please refer to the news and information section.

For the next six-months ELWA and Shanks and the teams of advisers worked together to finalise all of the 100+ documents that make up the IWMS Contract. Shanks also used this time to set itself up to run the new service.

The new service commenced on 24 December 2002. From this point, and for the next 25 years, the new company, ELWA Limited, became responsible for ELWA's waste disposal operations, which also included the running of the four Civic Amenity Sites (now known as Reuse and Recycling Centres) which had previously been managed by the Councils.

The new company, ELWA Limited, is a joint venture company between ELWA and Shanks Waste Services Ltd. The company will trade as "Shanks.east london", as this better reflects the identities of the two partners.

About Shanks

Shanks Waste Services Ltd is part of the Shanks Group plc, the UK's largest independently owned waste management company.

Shanks Group provides every waste management service with the exception of door-to-door municipal waste collection and has businesses throughout the UK, Belgium and Holland. The Group has an annual turnover of over £500m and employs 4600 people. Its website address is: http://www.shanks.co.uk

Set out below is a summary of Shanks' main proposals for the new service:

  • Education and community campaigns to promote waste minimisation, recycling and recovery

  • Introduction of kerbside separation of recyclables for all households

  • Significant improvements at all civic amenity sites, which are to be renamed Reuse and Recycling Centres

  • Local treatment of all collected waste in biological processes to dry and stabilise waste, reduce its weight and to allow separation of materials for recycling (Bio-MRFs) - through major new facilities at Jenkins Lane and Frog Island

    Artist's impression Jenkins Lane

    Artist's impression Frog Island

  • Production of secondary fuel from waste which has been treated and cannot be recycled - to be used to generate energy in existing facilities, displacing the need to burn fossil fuels

  • Moving waste off roads onto rail and possibly the river.

  • Increased recovery and recycling - to beat local and national targets

  • £100 million investment in sustainable waste management for the ELWA area

  • Existing employment safeguarded and transferred to new service

  • Nearly 100 new jobs

  • New Education and Visitors Centres

  • Dedicated Community and Education Liaison Officers

  • No new incineration in the ELWA area.


Contract Performance

The proposal and performance targets are set out in a series of Fact Files which are available to download.

Fact Files

These fact files can be downloaded in pdf format. To select a document, please click on one of the links below.

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FACT FILE 1 About Shanks 37kb   
FACT FILE 2 Summary of Main Proposals 39kb   
FACT FILE 3 Frog Island 43kb   
FACT FILE 4 Jenkins Lane 43kb   
FACT FILE 5 Results and Benefits 40kb   
FACT FILE 6 Targets and Achievements 91kb   
FACT FILE 7 Public Engagement 43kb   
FACT FILE 8 Timetable of Events 38kb   

FACT FILE 9 Maps

Reuse and Recycling Centres maps

98kb   

800Kb
     
Standard Q&As
Standard Q&As 94kb   



Map

This section contains maps showing new developments as part of the contract.