A consortium of companies have entered into a Waste Supply Agreement with Perth’s Eastern Metropolitan Regional Council (EMRC) where household waste from the region will be processed by the consortium at its East Rockingham Resource Recovery Facility and turned into energy.

The decision was made at the 2017 September Special Council meeting to confirm a consortium led by Hitachi (HZI) as the preferred tenderer.

The consortium which has developed and will deliver the project is led by Hitachi Zosen Inova, a world leader in the technology and delivery of turnkey energy from waste projects. It also includes New Energy Corporation (New Energy), which has been developing the East Rockingham site since 2013; and Tribe Infrastructure Group (Tribe), a global advisory and investment house specialising in the development and financing of large scale infrastructure transactions.

The Resource Recovery Facility deals with the household waste in rubbish bins left over after residents have reduced, reused and recycled their waste. The Resource Recovery Facility will recover usable materials and/or energy from waste, diverting between 70-90 per cent of waste (by volume) from landfill. In doing so, the project supports the Western Australia Government’s targets for landfill diversion, set in the state’s Waste Strategy.

The EMRC will now meet with its individual member Councils to get approval for various agreements required under the arrangement with HZI. This process must be completed before the award of tender can be finalised. Following this, the successful tenderer will need to secure financial closure to allow the project to proceed and for waste deliveries to commence in 2021.

Chairman of the EMRC, David Frdig, said, “The HZI consortium tender is the preferred tenderer from the bids evaluated by the EMRC and we look forward to finalising the various agreements with HZI.

“The EMRC’s priority has, and will continue to be, the efficient and sustainable management of waste and recovery of resources from waste streams. This project is part of the EMRC’s integrated waste management plans which also include development of the Resource Recovery Park at Hazelmere.”

Mr Frdig said the EMRC was confident in moving forward with this conditional contract.

“The call for tenders was released in August 2016. The five month tender process closed on 18 January 2017, with a diverse range of options presented. Since that time an extensive tender evaluation process has been undertaken to assess the submissions and determine the best value solution for Perth’s Eastern Region” Mr Frdig said.

Evaluation of the tender submissions has included compliance assessments, financial modelling, reference facility inspections and a detailed scoring process, undertaken by a tender evaluation panel with representatives from each Member Council, and input from EMRC staff with specific expertise and with consulting, probity and legal input.

Detailed evaluation reports were prepared and reviewed by a steering committee which recommended the preferred tenderer to Council.

The EMRC is committed to keeping the community, stakeholders and project partners informed and will provide further details once the contract has been finalised.

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