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Nabarro Projects team closes £650 million contract to modernise recycling services
16 November 2010
Nabarro has advised Sandwell Metropolitan Borough Council on a £650 million contract to modernise recycling services and street cleaning across the borough. The groundbreaking 25-year partnership with Serco - which will oversee the delivery of Sandwell’s Waste Improvement Plan (WIP) - was formalised at the contract signing at Oldbury Council house on 09 November.
The contract is an integral part of the Council's Waste Improvement Programme, which will allow it to reach a 60 per cent recycling and composting rate by 2015 and reduce the amount of waste it sends to landfill to less than 5 per cent by 2020. The approach will help the Council meet its financial challenges - delivering savings of at least £30m - and introduce operational improvements that respond to the needs and requirements of both Sandwell and its residents.
Serco's bid also involves organics specialists Jack Moody, materials recycling facility operator Pure Recycling and the operators of the Coventry incinerator, the Coventry & Solihull Waste Disposal Company. Together the companies are set to run Sandwell's household waste and recycling and street cleansing services, as well as developing a waste transfer station at the proposed Pikehelve ‘Eco Park', in West Bromwich.
Nabarro projects partner James Snape says:
“It is fantastic to get to Financial Close and to have worked with Sandwell on this challenging and innovative project. It is testament to all the hard work the Council and Serco have put in that we have managed to close the project only three months following the announcement of Serco as Preferred Bidder.
Sandwell originally began procuring the integrated waste and recycling deal in August 2008 after deciding to ‘go it alone' and not seek PFI funding support for the procurement. The strong partnership and innovative financing structures (including an element of capital contribution from Sandwell) has been fundamental to the achievement of this deal.
This is the first transaction on which all the parties have worked together, it is a testament to the experience, focus and commitment of all parties involved in bringing this important project to fruition."
Client quote from Sandwell:
Jan Britton, Interim Chief Executive of Sandwell MBC and project sponsor says:
“The Nabarro team, working in conjunction with the Council’s Legal Services team, have proved themselves to be refreshingly pragmatic with their positive focus on finding solutions which met the Council’s objectives. It was not only the experience and expertise which Nabarro brought but also their clear and unequivocal presentation of advice which allowed the Council to proceed with confidence through this complex procurement.”
The Nabarro team was led by London projects partner James Snape, assisted by Stefanie Atchinson and Sandy Abrahams. The team was supported by specialists in employment (Will Santer) and pensions (Partner Ian Greenstreet and associate Michael Rooney). Alan Twine assisted on the property side.
Nabarro worked alongside the Council's technical advisers SLR and financial advisers, Grant Thornton to deliver the project. Serco was advised by Ashurst LLP, whilst financial advice was provided in-house.
If you would like any further information or have any queries please contact:
James Snape
Nabarro LLP
j.snape@nabarro.com or +44 (0)20 7524 6804
