SUEZ ENVIRONNEMENT Subsidiary, SITA UK, Selected as Preferred Bidder for West
London Public Private Partnership Contract Worth €1 Billion
New Energy-from-Waste contract in the United Kingdom
PARIS, April 29, 2013
PARIS, April 29, 2013 /PRNewswire/ --
A consortium led by SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, has been
selected as preferred bidder for a resource recovery contract worth €1 billion
over 25 years with the West London Waste Authority. Total revenues of the
contract are €1.9 billion including the management of third party waste and
revenues from the sale of electricity. The other consortium members are Lloyds
Banking Group and ITOCHU Corporation.
The contract is to manage up to 300,000 tonnes of residual household waste
each year from the West London Boroughs of Brent, Ealing, Harrow, Hillingdon,
Hounslow and Richmond-upon-Thames. The waste collected from over 1.4 million
residents will be managed in a new energy-from-waste facility in Severnside,
South Gloucestershire and transported by rail from West London. Compared to
the current waste treatment this will save over 83,000 tonnes of CO2 emissions
each year, which is more than two million tonnes over the duration of the
SITA UK will take over the operation of two rail-linked waste transfer
stations in West London.The new rail-linked energy-from-waste facility, which
will be called the Severnside Energy Recovery Centre (SERC), already has
planning permission. This facility will produce enough electricity to power
the equivalent of approximately 50,000 homes and could also supply hot water
to local businesses, further improving its environmental performance.
The total capital investment in the new facility is over €280 million. A total
of 53 permanent jobs will be created at SERC with around 200 jobs being
created during its construction.
Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said: "Following the
Merseyside PFI, thisnewresource recoverycontract
onenergy-from-wasteactivities.We have a solid track record of delivering
new resource management facilities that local authorities need to manage their
residual waste. With planning permission already in place for our
energy-from-waste facility we look forward to signing the contract and getting
on with delivering the infrastructure that is needed to putWest London's
waste to good use."
Councillor Bassam Mahfouz, Chair of WLWA, said: "For too long we in
westLondonhave been sending the waste we didn't recycle to pile up in
landfills. This new contract means that virtually nothing will be sent to
landfill and our waste will be turned into energy, saving the environment, and
saving each borough money. We have also built in that we want to continue
increasing recycling, which is already amongst the highest inLondon."
SUEZ ENVIRONNEMENT, through its subsidiary SITA UK, has developed a number of
PPP (Public Private Partnership) contracts across the UK including: Surrey,
South Gloucestershire, Kirklees, Cornwall, Northumberland, Aberdeen, the Isle
of Man and Teesside. In April 2013, SITA UK and Cornwall Council agreed on a
PFI contract variation worth €1.3 billion of revenue and in the same month, a
SITA UK led consortium was selected as preferred bidder for a €1.4 billion
contract with the Merseyside Recycling and Waste Authority.
In the waste sector, this type of partnership was developed to allow British
local authorities to develop alternative waste management facilities to
SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, is a recycling and resource
management company, generating environmental value, social value and economic
value from our nation's waste. The company delivers environmentally
responsible and increasingly innovative solutions for the public, local
government, industry and commerce, enabling our customers to reduce their
impact on the environment. SITA UK serves over 12 million people and handles
more than eight million tons of domestic, commercial and industrial waste
through a network of recycling, composting, energy-from-waste and landfill
facilities. SITA UK employs over 5,500 staff and has an annual turnover in
excess of £770 million.
Natural resources are not infinite. Each day, SUEZ ENVIRONNEMENT (Paris: SEV,
Brussels: SEVB) and its subsidiaries deal with the challenge of protecting
resources by providing innovative solutions to industry and to millions of
people. SUEZ ENVIRONNEMENT supplies drinking water to 96.6 million people,
provides wastewater treatment services for 66.3 million people and collects
the waste produced by 50 million people. SUEZ ENVIRONNEMENT has 79,550
employees and, with its presence on five continents, is a world leader
exclusively dedicated to water and waste management services. In 2012, SUEZ
ENVIRONNEMENT, a subsidiary in which GDF SUEZ has a 35.7% interest, generated
revenues of EUR 15.1 billion.
WEST LONDON WASTE AUTHORITY
West London Waste Authority (WLWA) is a statutory waste disposal authority and
was created in 1986.
Refuse and recycling collection and the operation of Household Re-use and
Recycling Centres will not form part of the contract with SITA UK
ITOCHU, a publicly traded company headquartered in Tokyo, Japan, with total
assets of approximately £42.8 billion (Mar 2012), was founded in 1858 and
currently has approximately 130 offices in 66countries. ITOCHU's global
infrastructure holdings include: development projects or investments in
renewable energy and power generation; transportation assets; and water and
desalination facilities. Especially in UK'sinfrastructure, ITOCHU, together
with SITA UK, has developed four energy-from-waste projects including: South
Tyne and Wear, Cornwall, Merseyside and West London.
LLOYDS BANKING GROUP
SWIP Infrastructure Funds is a greenfield PPP funds management platform in
Scottish Widows Investment Partnership a leading European asset management
company, part of Lloyds Banking Group.
SWIP Infrastructure Funds are backed by corporate pension plans, private
equity and global institutional investors including the European Investment
This press release is also available at http://www.suez-environnement.com
SOURCE SUEZ ENVIRONNEMENT
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