Waste Infrastructure Procurement Programme: Strategy and Management

1
Waste Infrastructure Procurement Programme
Strategy and Management
Taliesin Maynard Programme Manager Welsh Assembly
Government
Achieving Excellence in Project Management
Conference 15 July 2009
2
Background

• Investment programme to deliver waste treatment
  capacity across Wales
• Sits in the context of One Wales
• help tackle climate change
• achieve sustainable energy production and
  consumption
• help meet local authority BMW landfill
  diversion statutory obligations
• Two sub-programmes
• food and organics waste (2013 targets)
• residual waste (2020 targets)
• Bio-degradable Municipal Waste

3
Statutory and Policy Targets

• The Waste and Emissions Trading Act 2003
• Maximum amounts of BMW that can be landfilled
• 2009/10 710,000 tonnes (75 )
• 2012/13 470,000 tonnes (50 )
• 2019/20 330,000 tonnes (35 )
• Landfill Allowance Scheme Regulations (Wales)
  2004
• infraction fines 200 per tonne
• Preferred scenario
• 70 recycling / composting
• 30 energy from waste
• of 1995 levels

4
Food and Organics Waste Treatment Procurement
Programme

• Preferred technology is anaerobic digestion
• more cost efficient than composting
• produces renewable energy
• lower carbon footprint
• greater degree of process control (eg ABPR )
• Inputs
• bio-degradable (household) waste
• Outputs
• biogas (CO2 / CH4)
• digestate
• waste water
• Animal By-Products Regulations

5
Treatment Facilities

• UK Twinwoods, Bedford

• European examples

6
Timescale and Milestones
Jun-Dec 2008 Memoranda of Understanding Dec
2008 Funding secured Feb 2009 Approval of
Project Initiation Documents and Strategic
Outline Cases Jul 2009 Evaluation of Outline
Business Cases Aug 2009 OJEU contracts tender
notice published Nov 2009 Commencement of
Dialogue Oct 2010 Contract award Nov
2010 Financial close May 2011 Construction
start Apr 2012 Commissioning Oct 2012 Service
commencement
7
Role of the Assembly Government

• Programme Office established January 2009
• coordination
• information
• support
• Provides guidance, monitoring, training and
  facilitates delivery
• Local authority funding allocation through agreed
  QA regime
• 26m Strategic Capital Investment Fund
• Provides clarity in policy terms to show market
  Wales is open for business

8
Food Waste Procurement Hubs

• Configuration
• 5 procurement hubs
• 2 single Authority projects
• Benefits
• Collaboration
• Efficiencies
• Critical mass

9
Projects
Note Tomorrows Valley hub (Merthyr Tydfil and
Rhondda Cynon Taf) is currently in procurement
10
Procurement Strategy

• Separate contracts will be tendered by a partly
  synchronised procurement process
• Single contract with lead authority
• Central pre-qualification
• Streamlined competitive dialogue
• Standardised contract documentation
• Ring fenced capital and revenue support
• DBFO contract (15-20 years)
• Reference site

11
Programme Management

• Robust governance structure
• Early identification and management of risk
• Balanced delivery
• policy objectives and commercial realism
• Effective communication lines
• Stakeholder engagement
• Collaborative working

12
Effective Collaboration

• Waste Infrastructure Delivery Programme
• transactor support
• Commercial projects WRAP Cymru
• Planning taskforce
• Central pre-qualification steering group
• Training programme
• programme and project level
• Market and community engagement
• Waste Awareness Wales and WLGA

13
Benefits of Collaboration

• Economies of scale
• Better value for money
• Clearer contractual arrangements reduce bidder
  cost
• Making scale of procurements more attractive
• Pooling of local authority staff resource and
  expertise
• Reduced duplication of work and cost
• Fewer contact points in local authorities
• 5 consortia leads
• Shared information

14
Lessons Learned

• Local authority partners need to share
  information and work towards common goal in
  politically stable environment
• Better, more rounded identification of risks
• allocate mitigation to those best positioned to
  manage them
• importance of programme risk mitigation
  strategies (eg interim contracts)
• Accelerated working between Programme Office,
  hubs and advisors
• Delegation of authority to a project board
  greatly facilitates approvals process
• schedule approval cycles into timetable

15
Key Issues and Challenges

• Industry
• attractiveness
• capacity
• maintaining competition
• Parallel projects delivery
• local authority capacities
• End markets
• Planning consents
• Project solutions

16
Waste Infrastructure Procurement Programme
Strategy and Management
Taliesin Maynard Programme Manager Welsh Assembly
Government
taliesin.maynard_at_wales.gsi.gov.uk 44 (0)29 2082
5584