Shortlist announced for Victoria’s biggest tender for new waste management infrastructure

Three tenderers have been shortlisted for the biggest tender for new waste management infrastructure in Victoria, following a competitive tender process.  

Bayside City Council and 15 other councils from Melbourne’s south east are seeking an advanced waste processing alternative to landfill in a tender process led by Metropolitan Waste and Resource Recovery Group.

Following a very competitive tendering process involving 30 expressions of interest, three tenderers have been shortlisted: 

• Veolia Environmental Services Australia Pty Ltd 
• Sacyr Environment Australia 
• Pacific Partnerships and REMONDIS (A consortium comprised of Pacific Partnerships and REMONDIS Australia, together with CIMIC Group Companies CPB Contractors and UGL) 

“This is the biggest tender for new waste management infrastructure ever undertaken by councils in Melbourne” said Bayside City Council CEO, Mick Cummins.

“Advanced waste processing will transform how we manage the rubbish we collect from residents.”

No decisions have been made yet regarding the type or location of any facilities. This will be identified late in the procurement process.

It is expected that one or more 20 to 25 year contracts will be awarded by 2022, with construction starting in 2023. 

The new facilities are expected to attract investment of around $650 million and create temporary jobs during construction and permanent operating jobs. 

Landfills in the south east of Melbourne are filling up and no more are planned to be built. Household rubbish in Bayside City Council and the other 15 councils is projected to increase by 40% over the next 25 years.  

This project will deliver an alternative to landfill and transform how household rubbish is managed by putting it to good use instead of burying it in the ground. The best outcomes will be achieved by minimising our waste, reusing or recycling, and then what is left over can go to advanced waste processing.

Advanced waste processing technologies have been used successfully and safely overseas for years as an alternative to landfill.

Bayside City Council, along with the other 15 councils, made the final decision on the shortlist following a review by MWRRG and its technical, legal and financial advisors.  

Veolia Environmental Services Australia, Sacyr Environment Australia and Pacific Partnerships and REMONDIS will work with Bayside City Council and the other south east councils over the next stage of the procurement to develop an advanced waste processing solution that delivers environmental, economic and social benefits to the community.

Advanced waste processing will help the Victorian government deliver on its circular economy strategy – Recycling Victoria – a 10 year plan that will completely overhaul Victoria’s recycling sector and reduce waste going to landfill.  

“Advanced waste processing will do more with the resources that are being put in landfill and achieve better financial, environmental and social outcomes,” said Mr Cummins.

Advanced waste processing solutions will play a significant role in achieving the new target to divert 80 per cent of household rubbish from landfill by 2030. 

“Advanced waste processing is a great solution for residual household rubbish that would normally go to landfill.

We still need to continue kerbside recycling and green and food waste collection services as part of a total approach to wasting less and recycling more.”