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SPV company created to deliver waste processing for household waste

Councils in Melbourne’s south east have joined together to form a special purpose vehicle (SPV) called South East Metropolitan Advanced Waste Processing to deliver new infrastructure to process household waste.

A SPV is a company with its own assets, liabilities and legal identity. The SPV will transition to become the procuring entity for the advanced waste processing facility, with support from Metropolitan Waste and Resource Recovery Group (MWRRG), and will award the contract for the procurement before managing the contract for the ongoing operation of the facility.

Independent legal advice identified a SPV was the most viable way to facilitate the procurement of an advanced waste processing facility for councils.

This tender is the largest ever undertaken in Melbourne for new infrastructure to process household waste and is expected to attract multi-million dollar investment and create temporary jobs during construction as well as permanent operating jobs.

Following MWRRG’s call for an expression of interest for an alternative to landfill for councils in Melbourne’s south east, the procurement has progressed with the three shortlisted respondents—Orbis Energy, Sacyr Environment Australia and Veolia Environmental Services Australia.

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Councils will work with the respondents to ensure their social, environmental and economic objectives are met and a reliable solution is put forward during the solution development stage. This stage is currently in progress and is expected to be completed later this year.

Advanced waste processing facilities use proven technologies to put household waste to more productive use and provide an alternative to sending waste to landfill.

Advanced waste processing will help the Victorian Government deliver its circular economy policy and, waste and recycling action plan—Recycling Victoria: a new economy—to completely overhaul Victoria’s recycling sector and reduce waste going to landfill, including the target to reduce waste to landfill by 80 per cent.

“Given the nature of our advanced waste processing procurement, the establishment of a SPV is essential for the participating councils to be able to enter into an agreement with a contractor to deliver a facility,” said Mick Cummins, chief executive officer of Bayside City Council, who was elected the chair of South East Metropolitan Advanced Waste Processing. “The SPV will allow councils to secure the economic, environmental, and social benefits from the facility for the community. It will also allow councils guaranteed access to the facility to ensure reliable household waste disposal for the community.”

“Councils coming together to form a SPV is a major milestone in what is the biggest tender for new waste management infrastructure ever undertaken by councils in Melbourne,” said Metropolitan Waste and Resource Recovery Group, CEO, Jill Riseley. “The new facilities are expected to attract multi-million dollar investment and create up to 400 temporary jobs during construction and up to 100 permanent operating jobs.”