Waste authority faces legal challenge over £1.2 billion contract

1 August 2013

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2 August 2013 | Adam Leach

The Merseyside Waste Disposal Authority (MWDA) has vowed to “vigorously” defend its decision to award preferred bidder status to a consortium led by SITA UK for a £1.2 billion waste deal, following a legal challenge from an unsuccessful bidder. 

Preferred bidder status for the Merseyside and Halton Waste Resource and Recovery Contract was awarded in April. But rival bidder Covanta Energy has challenged the decision on the grounds its bid was £200 million cheaper and has called for the award to be halted.

The MWDA robustly defended its actions and stated its intention to claim back all resulting legal costs from Covanta that arise from the dispute. It has also pledged to continue working with SITA to try and conclude the contract negotiations.

Carl Beer, chief executive of Merseyside Waste Disposal Authority, said: “While it is appreciated that an unsuccessful bidder will naturally be disappointed at the outcome, MWDA has conducted an extensive and fair procurement process over several years and is confident that the most economically advantageous solution has been selected for Merseyside. 

“The Authority continues to work with SITA to conclude the Merseyside and Halton Waste Resource and Recovery Contract which will provide a sustainable waste resource solution for Merseyside and Halton taxpayers,” he added.

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