Explanatory Note on the above NOTICE

In June 2009, SWaMP2008 published a contract notice in the Official Journal of the European Union advertising its procurement of a Residual Waste Treatment Contract.

This is a long term service contract (approximately 25 years) under which a contractor (the “Contractor“) would be appointed to treat residual municipal waste (i.e. waste that has not been reused, recycled or composted) and provide associated services (including but not limited to the management, sale and/or disposal of waste outputs) under a Public Private Partnership (PPP) model (the “Contract“). The Contract is intended to facilitate the diversion of significant quantities of municipal solid waste from landfill in Northern Ireland to assist in meeting statutory targets and to meet all other legal requirements.

The competition for the Contract is being conducted in accordance with the Public Contracts Regulations 2006 (as amended) using the Competitive Dialogue procedure.

Following publication of the contract notice, six candidates submitted Pre-Qualification Questionnaires to SWaMP2008. These candidates were assessed in relation to their financial and technical capacity to undertake the Contract. Two applicants were eliminated from the competition as they did not meet certain minimum requirements for qualification. Four candidates were selected to proceed to the competitive dialogue phase of the procurement, which commenced in May 2010.

One bidder withdrew shortly after the commencement of the dialogue phase for its own commercial reasons. Dialogue was conducted with the remaining three bidders for a number of months before one of these bidders withdrew from the process.

In October 2010, the two remaining bidders submitted detailed solutions, however in April 2011, one of these also withdrew from the process, leaving Quinn Group Limited (Company No: NI41532) as the sole remaining bidder for the Contract.

To date, SWaMP2008 has been of the view that it is in the best interests of the Project and the stakeholders to continue dialogue with a single bidder.

In order to enhance the proposal, it is now proposed that two new partners not previously involved in the procurement process are introduced – Costain Group (a leading construction undertaking in the UK which brings considerable experience concerning the construction, engineering, delivery of waste infrastructure and services) and Equitix (an asset investment company which has considerable expertise in the delivery and management of PPP/PFI contracts and infrastructure). It is also proposed that Quinn Manufacturing Group Limited (Company No: NI608284) will be involved in the project going forwards, instead of Quinn Group Limited.

SWaMP2008 recognised that the revised arrangements are a very positive step forward and considers that the combination of these three companies is likely to provide a much strengthened bid, while maintaining a similar vision for service delivery to that originally proposed (i.e. a mechanical biological treatment (MBT) plant (based on Entsorga technology) and an education centre based at the Lisbane site (which have the benefit of planning permission).

A summary of the principal changes proposed is set out below. Essentially, these changes are as follows:

1) Changes in the equity make-up of the Contractor or Special Purpose Vehicle (SPV) which will contract with SWaMP2008;

2) Changes to both the Engineer Procure Construct (EPC) and Operations & Maintenance (O&M) Sub-contractors and the Guarantors of the EPC and O&M activities;

3) Potential changes to the fuel off-take arrangements.

(1) Changes to Equity in SPV

It was originally proposed that Quinn Group Limited would own 100% of the equity in the SPV established to contract with SWaMP2008 for the Project.

It is now proposed that Quinn Manufacturing Group will hold 20% of the equity in the SPV, Costain Engineering & Construction Limited (Company Number 02440829) (Costain) will hold 50% and Equitix Limited (Company Number 06026637) (Equitix) will hold 30%.

The SPV will be governed by a shareholders agreement at financial close. It is envisaged that Costain will be the lead member of the SPV going forwards, with Equitix closely involved in the key commercial and financial aspects and the Quinn Manufacturing Group performing a significant role in operations, as explained below.

(2) Changes to both the EPC and O&M Sub-Contractors and their Guarantors

Under the Contract between SWaMP2008 and the appointed Contractor, it is anticipated that there will be two primary sub-contracts: an EPC Sub-Contract (for the construction of new facilities) and an O&M Sub-Contract (for the ongoing provision of waste treatment services during the balance of the term of the Contract).

It was originally proposed that:

a) the EPC Sub-Contract would be let to a third party which would also act as Guarantor in relation to the construction of the transfer stations and MBT plant (using Entsorga technology); and

b) a Quinn Group subsidiary company would be the O&M Sub-Contractor and Quinn Group Limited would be the Guarantor in relation to the following:

- operation of the transfer stations;

- operation of the MBT plant (possibly by way of a joint venture with Entsorga initially);

- all haulage arrangements;

- a 25 year off-take contract for waste residues to be taken and used as input fuel (known as Solid Recovered Fuel or ‘SRF’) at a Quinn cement kiln facility in the Republic of Ireland (subject to contingency arrangements being put in place);

- provision of landfill services; and

- provision of interim services pending construction of the MBT plant.

This solution has been the subject of ongoing dialogue with SWaMP2008, including the projected waste flows in the SWaMP2008 administrative area. New data on waste flows is already in the public domain and can be viewed at www.doeni.gov.uk/niea/waste-home/municipal_data_reporting.htm

The current proposals (subject to further dialogue with SWaMP2008) are as follows:

a) Costain will be the EPC Sub-Contractor and Guarantor for the purposes of the construction of both the transfer stations and the MBT plant (replacing the other third party construction contractor originally proposed). Importantly, the process technology provider will remain as Entsorga. Costain, as the EPC Sub-Contractor and Guarantor, will wrap construction and Entsorga process risks.

b) Costain will be the O&M Sub-Contractor and Guarantor of the operational services. The O&M Sub-Contract will include:

- operation of the MBT plant;

- operation of the transfer stations;

- all haulage arrangements;

- the arrangement of any necessary landfill services; and

- the provision of interim services pending construction of the MBT plant.

Quinn Manufacturing Group Limited will be responsible for the following services (which will be sub-contracted down to it by Costain, the O&M Sub-Contractor):

- operation of the transfer stations;

- all haulage arrangements.

Off-take services are dealt with below.

The requirement for interim services (prior to full operation of the MBT plant) and the arrangements for the same have yet to be fully dialogued, although these are likely to be provided by a third party contracted to the Costain O&M Sub-Contractor who will assume the risk for such services.

The technical and financial standing of the new bidding consortium and those parties whose resources are to be relied upon in the course of the performance of the Contract has not yet been considered, but it is SWaMP2008’s intention to re-evaluate the proposed consortium against the Pre-Qualification criteria to ensure that it has the technical, economic and financial ability to carry out the Contract.

(3) SRF Off-Take Solution

It was originally proposed that the “Solid Recovered Fuel” output from the MBT plant process would be used as a fuel for a Quinn cement kiln in the Republic of Ireland (subject to contingency arrangements also being put in place elsewhere) and that an off-take contract would be provided in respect of this. It is now proposed that Quinn Manufacturing Group Limited will provide the SRF off-take services at the same Quinn cement kiln in the Republic of Ireland (subject to contingency arrangements being put in place elsewhere).

Costain will be the Guarantor for the purposes of the SRF off-take under the O&M arrangements referred to above.

Land

The principal land required for the project is that which is required to host the MBT plant to be constructed by the Contractor. Transfer stations are also to be developed at sites owned by constituent councils in the region. It was originally proposed that the MBT plant would be located at Lisbane, County Armagh (which already has the benefit of planning permission for such a MBT plant). Under the revised proposals, the Lisbane site will continue to be available for the construction of the MBT plant and the consortium will be able to benefit from the planning permission which has been granted for this site.

Summary

Whilst various changes are proposed, it is important to note that the vision of the service delivery remains the same – a MBT plant based on Entsorga technology plus an education centre based at the Lisbane site, which have the benefit of planning permission.

The operational delivery of the services will now be split between Quinn Manufacturing Group Limited and Costain, with Costain assuming prime responsibility for operating the MBT plant and overall provision of operational services.

The consortium is now in the final stages of dialogue with SWaMP2008. It is currently anticipated that dialogue will conclude in Summer/Autumn 2012 and that SWaMP2008 will be in a position to invite a final tender shortly thereafter.

http://www.rethinkwasteni.org/at-home/reuse/get-a-bag-habit/

Northern Ireland Audit Office – Annual Audit Letter – Issued by the Local Government Auditor February 2012

NIAO Annual Audit Letter – SWaMP2008: 2010-11

NIAO Annual Audit Letter Report – SWaMP2008: for year to 31st March 2011

For further information contact

Jolene Keys, Tel: 028 82249494 or email

jolenekeys@swamp2008.org.uk

Accounts to 31st march 2011

NI Environment Minister Alex Attwood congratulated the SWaMP2008 team, Jason Patterson, Graham Byrne and Councillor Pearse McAleer on the Waste Discovery Truck which has won a prestigious UK-wide Green Apple Award

SWaMP2008 has won a prestigious Green Apple Environment Award in a national campaign to find the UK’s greenest companies, councils and communities.        

 SWaMP2008 competed against more than 500 other UK nominations and will be presented with their Green Apple Award at a glittering presentation ceremony in the House of Commons in London on November 14.

SWaMP2008 has won the Green Apple Award for its innovative Waste Education Vehicle, a mobile classroom used to visit schools and community events throughout the south and west of the province.  It is providing vital education and resources to drive recycling awareness throughout the region. 

 Cookstown District Councillor Pearce McAleer, Chair of SWaMP2008, is thrilled with the award.  He said, “This is a real accolade for SWaMP2008.  The Green Apple Award is much sought-after in waste management and environmental circles across the UK.  We are delighted that an initiative like this has been recognised at a national level.

Chief Officer of SWaMP2008, Graham Byrne said, “As a region, SWaMP2008 currently has an average recycling rate of 37%.  By 2020, our target is to reach 50% recycling.  It is vital that the local community, and in particular, the next generation understand all the ways to improve the sustainability of resources by reducing, reusing and recycling their waste.  The new waste education vehicle is already proving to be a very valuable resource for the council recycling officers – it is completely booked up for schools’ visits over the next few months.”

The SWaMP2008 Waste Education Vehicle was funded through the DOE’s Rethink Waste capital funding.  Environment Minister, Alex Attwood congratulated SWaMP2008 on its achievement.  He said, “The Green Apple Award is great recognition for SWaMP2008.  This new mobile classroom, funded by DOE’s Rethink Waste fund, is an excellent tool to support the work being done by the eight local councils to educate the community. From this vehicle, people can learn how waste can be reduced, reused and recycled and how these activities contribute towards creating a more responsible, greener and sustainable future for us all.”

As a result of this success SWaMP2008 has been invited to have its winning paper published in The Green Book, the leading international work of reference on environmental best practice, so that others around the world can follow their example and learn from their experience

The Green Apple Awards began in 1994 and have become established as the UK’s major recognition for environmental endeavour among companies, councils, communities and countries.

The awards are organised by the Green Organisation, an independent, non-political, not activist, non-profit environment group dedicated to recognising and promoting environmental best practice.

Judges for the Green Apple Awards are drawn from the Environment Agency, the Chartered Institute of Environmental Health, the Chartered Institution for Wastes Management and other independent bodies. Ends

 For media information please contact:

Vicki Caddy, ASG PR, Tel 02890 802000

E: vcaddy@asgireland.com

Pupils from two schools in the SWaMP2008 Waste Management Region scooped the Junior and Senior Northern Ireland Environmental Youth Speak titles when the annual schools’ environmental speaking competition reached its climax at the Craigavon Civic Centre.

Sean King from Saint Joseph’s Primary School Meigh, in Newry and Mourne District Council, won the NI Junior title and Christopher Corry from Lismore Comprehensive, in Craigavon Borough Council, won the NI Senior title.

Both pupils had to fight off stiff competition to win their Regional SWaMP2008 heats and then faced the winning pupils from the arc21 and North West Waste Management Regions – the two other NI Waste Management areas.

More than one thousand pupils from right across Northern Ireland took part in the competition which began initially at Council level in March. Two representatives from all twenty six Councils then travelled to Craigavon on Thursday 14th April to compete in the Regional and NI Finals.

Environmental Youth Speak is designed to encourage environmental awareness among young people by giving them the opportunity to research and debate environmental issues. The topics for this year’s competition were “Rethink Your Waste – Reduce, Reuse, Recycle” and “Love Food hate Waste”. The competition, organised by Northern Ireland’s three waste Management groups  – arc21 (Eastern region), SWaMP2008 (Southern Waste Management Partnership) and North West Region Management Group – with sponsorship from  Cookstown Textile Recyclers, continues to be a highlight in schools’ environmental calendar in Northern Ireland.

Sean and Christopher are pictured with Nuala Mc Keever, who compered the NI Final, and Deputy Mayor of Craigavon Borough Council Councillor Kieran Corr.

Nuala McKeever, Sean King St Joseph’s PS Meigh (Junior NI Winner), Christopher Corry Lismore Comprehensive Craigavon (Senior NI Winner), Councillor Kieran Corr, Deputy Mayor Craigavon Borough Council.

Mayor welcomes “Love Food Hate Waste”

 Cookery Demonstration to Newry

Mayor, Councillor Mick Murphy welcomed the Love Food Hate Waste campaign, and Chef Paula McIntyre from Radio Ulster, to Newry Buttercrane Shopping Centre. Shoppers were able to see great meals being cooked from leftovers which otherwise would be thrown away. The cookery demonstrations are part of the Department of Environment’s Rethink Waste campaign which is travelling around  Northern Ireland.

Councillor Murphy said “This event is a fantastic idea. I am amazed at just how much food we throw away annually. It is important that everyone in Newry and Mourne thinks about how they can reduce their food waste by, for example, using leftover food in imaginative ways.”

The Love Food Hate Waste campaign aims to raise awareness of food waste and therefore reduce the amount of food waste we send to landfill. In the UK £12 billion is spent every year buying and then throwing away good food which costs the average family £680 a year equating to around £50 per month. The campaign shows that by doing some easy practical everyday things in the home we can all waste less food, which will ultimately benefit our purses and the environment too.

Tara Cunningham, Recycling officer added “Each year Newry and Mourne District council landfills approximately 40,000 tonnes of waste of which food waste is a large percentage. I would encourage everyone to visit the Love Food Hate Waste web site for lots of useful tips and ideas for reducing their food waste – helping not only the environment but also saving them money.”

Why not  check out over 170 recipes using typical leftovers at www.lovefoodhatewasteni.org .  For additional tips and ideas on how you can reduce, reuse and recycle log on to www.rethinkwasteni.org. 

Pictured are :

L-R Peter Murray Manager Buttercrane Shopping Centre, Michele Shirlow Food NI, Tara Cunningham Recycling Officer Newry and Mourne District Council, Mayor Councillor Mick Murphy, Paula McIntyre BBC Radio Ulster Chef, Hazel Audley Rethink Waste NI and Patrict McShane Environmental Co-ordinator Newry and Mourne District Council.

Web Site LFHW Newry 11.02.11

 The project is tasked with finding alternative ways of dealing with domestic waste in order to avoid dumping it in landfill.  The resulting infrastructure will be required to sort and treat waste, with a view to increasing recycling, recovering more reusable materials and using the residual waste as an alternative, sustainable energy source.

 The two short-listed bidders are Greenstar/Biogen and Quinn Group.

The lengthy and complex competitive tendering process is now at the stage of discussing detailed solutions.   Further dialogue will take place in the new year before final evaluation and the appointment of a preferred bidder in 2011. 

 Graham Byrne, Chief Officer of SWaMP2008 said that good progress is being made.  He said, “We have completed the initial evaluation of the detailed submissions from these two bidders.  Each company has submitted proposals on how they would approach the project, should they be successful.  Having evaluated these submissions, we will provide feedback and continue with the process.  Due to the highly confidential and competitive nature of the dialogue process we are not in a position to reveal any details of either bid at this stage. 

“We are looking for the right solution for the region, using technology to meet the waste management needs of the area, while also continuing to support increased recycling and a more sustainable approach to resources.  Obviously we are also looking for a cost-effective solution for the eight councils in the SWaMP2008 region.   We must ensure that whatever technical solution is proposed will also offer long term value for money for local ratepayers.”

 Confirming the shortlist, Chairman of the Joint Committee of SWaMP2008, Councillor Jack Patterson said, “In the new year, we will complete the final stage of the competitive dialogue process.  Following evaluation and analysis of the technical, legal and financial aspects of each bid, we look forward to appointing a preferred bidder, with whom we will then work closely to get this vitally important infrastructure in place.”

Any member of the public may:

(a) inspect and make copies of the statements of accounts (or any part of it) prepared by the Council;

(b) inspect and make copies of (or any part of it) any report made to the Council by the local government auditor;

(c) require copies of any such statement or report (or any part thereof) to be delivered to him/her on payment of £10 for each copy.

The above documents may be inspected at The Council Offices, The Palace Demesne, Armagh or at the SWaMP2008 offices, Omagh Enterprise Company Ltd, Great Northern Road, Omagh, between the hours of 9.00am and 5.00pm Monday to Fridays.

In addition the statement of accounts may be viewed on the SWaMP2008 website www.swamp2008.org.uk

 SWaMP2008 Accounts 2009-10