If the proposed residual waste treatment technology can generate outputs classified as recycling and the Authority values recycling by the Contractor more highly than other forms of diversion, it is recommended that the Payment Mechanism should include a Recycling Adjustment.
The purpose of the Recycling Adjustment is to provide a mechanism to incentivise the Contractor to deliver the level of recycling bid during the tender process, reflecting any Authority preference for recycling over other forms of diversion. If the level of recycling achieved is above the target then there should a payment. Conversely a deduction should apply if recycling is below the target.
Any Third Party Income arising from the sale of the recyclate should be dealt with under the Third Party Income arrangement.