The scope of the outputs defined in the Output Specification should reflect the definition of the waste streams that the Contractor is obliged to accept.
The Contractor should take on absolute responsibility for all "downstream" activities from the point at which collection vehicles discharge waste through the processing stage to delivery of products to end markets or residues to the final disposal point. Thus, the Contractor will need contingency plans to ensure that the Contractor is always in a position to accept the Contract Waste even when the processing technology and/or the end markets fail.
Projects may incorporate non-residual waste functions such as collection, transfer, recycling and composting activities. The decision on the level of integration1 is for the Authority to make and will be informed by a consideration of:
• The sites requiring development and management;
• The cost-effectiveness of integration;
• The current status of operational contracts; and
• Local market competition for waste services.
The Output Specification suggested drafting in Part II of this Module focuses on Performance Standards relating to the diversion of MSW from landfill. This is based on the presumption that most Authorities will aim to secure the majority of recycling though upstream activities (e.g. kerbside segregation) before the residual waste is delivered to the Contractor. However, where bidders propose and Authorities accept residual treatment technologies which can deliver additional recycling or composting (as measured by the relevant national indicators set out in Local Area Agreements)2 then this output should be subject to performance targets which would be agreed by negotiation with bidders.
In determining the residual waste tonnages (and hence the Authority’s anticipated capacity requirement) the Authority will need to consider:
• Future waste arisings - the Authority should determine this by taking into account recent growth trends, future population and household growth and waste minimisation aspirations;
• Future recycling levels - the Authority should plan to achieve, as a minimum, recycling levels set out in the national Waste Strategy 2007 (WS 2007); and
• The inclusion as appropriate of wastes arising in the commercial sector - such waste can take up any spare capacity in the early years of a project or can be permanently catered for where the Authority can demonstrate synergistic benefits, for example, environmental and/or economic gain.
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1 Note that although Defra's PFI Credit Criteria emphasise disaggregated projects, the criteria do not rule out well structured integrated projects. Authorities which are considering integrated projects should discuss this with WIDP at the earliest opportunity.
2 Local Area Agreements will replace Best Value Performance Indicators in April 2008. For further details see "The New Performance Framework for Local Authorities & Local Authority Partnerships: Single Set of National Indicators", DCLG, October 2007 available at: http://www.communities.gov.uk/publications/localgovernment/nationalindicator