Many waste PFI/PPP projects involve two or more Authorities that have combined to procure a single treatment facility. In Yorkshire alone, there are three good examples in North Yorkshire and City of York, Barnsley, Doncaster and Rotherham and Bradford and Calderdale where Authorities joined together to procure a large treatment facility, underpinned by commitment to an Inter-Authority Agreement.
Apart from reduced procurement and advisor costs, the common driver is the economies of scale realised by combining waste streams to justify a larger plant and achieve lower gate fees.
The procurement team for a joint project clearly needs to be neutral, and solely motivated by the objectives of cost, time and quality milestones associated with the project, rather than being influenced by the sometimes conflicting politics of their host Authorities. Equally after close the Contract Management Team should be responsible for fairly representing the interests of all the WDAs involved in the project without bias. It is necessary to appoint one SRO from each Authority for these joint projects.
Underpinning these joint procurements are Inter-Authority Agreements. These bind the WDAs together, and stipulate the commitment from the participating WDAs in the form of governance protocols, minimum tonnages, delivery times, termination consequences for unilateral withdrawal, Waste Collection Authority default and so on. They will also normally provide a process for dealing with disputes between the Authorities.
A joint waste PFI/PPP contract can be managed in a number of ways and the exact arrangements may well be reviewed and potentially amended at some point over the life of the Contract. For example the Authorities may want to consider whether an integrated approach to joint working, such as a Joint Committee or a Joint Waste Authority, might provide beneficial in relation to managing the Contract. Defra can provide support for Authorities considering such formal partnership arrangements and have worked with a number of groups over the last three years to assist them in considering their options. Any WDAs considering establishing a partnership or a Joint Waste Disposal Authority wishing to learn from others experience before undertaking such an exercise should contact WIDP to request an introduction to the relevant team in Defra.