Details of Services sought:

You are invited to provide an expression of interest (EOI) in response to the requirements set out in section 6 of the invitation.

Please note that this invitation for expressions of interest is not an instruction for you to proceed with the supply of any services. A copy of the Terms and Conditions is attached in section 7 of the invitation.

Response form:

Respondents are required to provide the information requested in Schedule 1 to this invitation for expressions of interest.

Scope

The document sets out the details of the procurement process for advanced waste processing solutions to divert residual municipal solid waste (MSW) from landfill, which will be conducted in accordance with the Metropolitan Waste and Resource Recovery Group’s (MWRRG) duties and responsibilities as set out in the Environment Protection and Sustainability Victoria Act 2014 (Vic) and the Victorian Government’s Circular Economy Policy.

MWRRG, on behalf of the 16 metropolitan Melbourne Councils (the Councils) listed in Section 3, is seeking expressions of interest from suitably qualified and experienced suppliers of solutions that can achieve the Project Objectives that are set out in section 4.

Through this invitation for expressions of interest MWRRG and the Councils are seeking the following information:

• Contemporary experience of designing, constructing, commissioning, operating, maintaining and financing solutions capable of recovering value from residual municipal solid waste (MSW) comparable to this project

• Industry experience of achieving environmental performance and outcomes at comparable facilities

• Industry experience/understanding of achieving community acceptance of advanced waste processing solutions

• A high-level description of the technology solution that individual tenderers propose as a means of managing the Councils’ residual MSW and any third-party waste (for example commercial and industrial waste, and/or waste from the water industry) that MWRRG or tenderers may identify through this procurement.

Currently all 16 councils send the residual MSW that they manage on behalf of their residents to landfill. The Councils are seeking options to divert their residual MSW through resource recovery.

Collectively the 16 Councils are anticipated to be managing around 500,000 tonnes per year of residual MSW by 2021, increasing to around 700,000 tonnes per year by 2046 as a result of population growth within their local government areas. Annual estimates of waste generation for the 16 Councils are provided in Annex 1. The quantity and composition of any residual MSW that the Councils make available through this procurement will be influenced by the measures that the Councils introduce in implementing the Victorian Government’s Circular Economy Policy and Kerbside Reform Program.

The likely closure of the Hampton Park Landfill at Hallam around 2025 is precipitating a need for the Councils to seek an alternative to otherwise having to transport their waste to distant landfills in the north and west of the metropolitan region. Moreover, many of the Councils are seeking to reduce the negative environmental impacts associated with landfilling MSW, including a reduction in the generation of greenhouse gases that arise from the decomposition of biodegradable waste (particularly untreated food and garden organics) in landfill.

The procurement process is explained in section 5. During the procurement process, MWRRG and the Councils will confirm the total quantity of residual MSW the Councils expect to make available via the contract(s) that is/are let through this procurement.

Through a multi-stage process, the Councils are seeking to secure tender submissions which satisfy their requirements, which will likely involve the design, construction, commissioning, operation and maintenance of one or more advanced waste processing solutions to manage the Councils’ residual MSW, for a contract term of around 25 years on a project finance basis. The solution(s) will be funded by:

• Revenue collected for municipal waste services

• Capital grants that may be offered by the Victorian or Commonwealth Governments

• Gate fees obtained from treating third party waste (e.g. waste from non-contracted councils and/or commercial and industrial waste).

MWRRG is working with the Councils and its appointed advisors to develop a corporate structure that enables them to aggregate their residual MSW and supply this material to the solution provider(s) (section 5.4).

MWRRG is also working with the Councils and advisors to prepare an appropriate risk allocation and draft contract documents (section 5.5).

The work that MWRRG is undertaking to identify appropriate sites is outlined in section 5.6.