Update on WIDP John Burns Programme Director

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Update on WIDPJohn BurnsProgramme Director

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Overview

• Intro
• Project criteria and pipeline
• Transactor support for projects
• Guidance and benchmarking
• Progress to date
• Future Issues, challenges and developments

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Intro

• To support Local Authorities in England manage
  the procurement of the new infrastructure
  required to reduce the amount of biodegradable
  municipal waste landfilled in England to
• to 11.2 m tonnes by 2010
• to 7.5 m tonnes by 2013
• to 5.2 m tonnes by 2020
• WIDP is the Defra PFU and delivery mechanism
  combined.
• In partnership with PUK and Local Partnerships
• 3.2b PFI credits

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PFI Credit Criteria

• Criteria published in May 2006 emphasise
• Inter-Authority Partnership working
• Diversion from landfill and residual waste
  treatment
• Municipal Waste Management Strategies
• Site availability and planning status
• Following Waste Strategy 2007 publication some
  criteria are interpreted more specifically

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PFI Credit Criteria

• Criterion No.2
• - minimum recycling rate is 50
• Criteria No. 5 and 9
• - pre-procurement analysis must include studies
  re potential heat off takers

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Project Pipeline

• 2.4 billion credits committed to 36 projects
• in 4 rounds with 8 projects still in
  application
• gt 5bn capex
• potentially 6.4 million tpa diversion (risk
  adjusted)
• On average 300 jobs during construction
• and 40 long term per project

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PFI Credits Award Rounds

• Three step application process
• Expression of Interest
• Outline Business Case
• Final Business Case
• Standardised EoI, OBC and FBC documentation
• Six monthly award rounds

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Award Rounds Nearly Complete
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Transactor Support for Authorities

• Point of contact for all communications with
  Defra
• Available for non-PFI projects as well as PFI
  projects
• Strengthens authority client team does not
  substitute for the use of advisers
• Complements existing skills development and
  procurement QA processes
• Subject to an MoU

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When Can Transactors Help?
We work with authorities at any stage from
project development to commissioning and
throughout the operational phase.
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Projects Have Closed......

• 7 out of the 11 projects in procurement in Autumn
  2006 have now closed.
• Northumberland
• Shropshire
• Cambridgeshire
• West Berkshire
• Southwark
• GMWDA
• Cumbria (PPP)
• 2 PPP projects approaching close, 2 aborted

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Pre Award Round Projects

• At Preferred Bidder
• PFI Wakefield (VT)
• PPPs Derbyshire/Derby (UU), West Sussex
  (Biffa)
• In Dialogue (two Bidders)
• PFI Cheshire (Viridor, UU)
• PPP Buckinghamshire (Covanta , WRG)
• Oxfordshire (Viridor, WRG)
• Aborted
• PPPs - Norfolk A, Telford Wrekin

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Award Round 1 2 Projects in Procurement

• MWDA
• Received responses to ISDS from
• Covanta
• UU/Laing ORourke
• Shanks
• Sita
• North Yorkshire/City of York
• At final stage of dialogue with
• Amey/Cespa
• Earthtech/Skanska

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Award Round 2 the Short Lists

• Bradford
• Covanta/Kelda, Shanks/SSE, Earthtech/Skanska,
  UU/Laing/Costain
• Suffolk
• Sita, Veolia
• STWP
• MVV, Sita, UU
• Leeds
• Covanta, MVV,UU, Veolia
• BDR
• Amey/Cespa, Earthtech/Skanska, Shanks/SSE, Sita

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Award Round 3 All in Procurement (1)

• Gloucestershire CC
• Biffa, Covanta, Cory/Skanska/Earthtech, Cyril
  Sweett/BAM Nuttalls/Hills, MVV, UU/Laing, Urbaser
  ,Veolia, Viridor/CNIM, WRG
• Leicestershire CC
• Biffa, UU/Laing, Veolia
• MK/Northamptonshire CC
• Amey/Cespa, Biffa, Covanta, Greenstar/E.ON, MVV,
  UU/Laing/Laing O'Rourke, Shanks, Urbaser SA,
  Viridor , WRG

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Award Round 3 All in Procurement

• Norfolk CC
• tbc September 2009
• South West Devon
• MVV, Sita, Viridor
• Staffordshire CC
• MVV, Veolia

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Award Round 4A Current Status

• Hertfordshire CC
• Covanta, E.ON, MVV, Shanks/Wheelabrator, Sita,
  Veolia
• South London Waste Partnership
• UU, Urbaser, Veolia, Viridor, WRG
• Coventry, Solihull and Warwickshire
• PRG Approved. Not yet OJEUed

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Award Round 4B Current Status

• Outstanding
• Central Bedfordshire, Bedford and Luton
• Derbyshire Derby
• Dorset
• Essex CC Southend on Sea
• Hull and East Riding
• North London Waste Authority
• West of England

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• not necessarily the final contract technology

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Bidder Commitments Live Bids
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Published Guidance
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Developing Guidance
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Issues looking forward 2009/10

• Carbon
• Renewable Energy/Heat/CHP
• SRF and Waste wood off-take markets
• Availability and price of lending
• Response to NAO report
• Support for post close projects
• Improved communication

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Questions welcome