The following statement was delivered by the Minister for Public Services, Deputy Scott Ogier, to the States of Deliberation on Tuesday 8 March 2016, regarding an update on the implementation of the waste strategy
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Members will recall last April I updated the Assembly on the implementation of the waste strategy. This was after we had received initial cost estimates from the companies bidding to design and build the proposed new facilities at Longue Hougue, which were well in excess of the £29.5 million capital budget the States agreed in 2014. To manage the situation, we revisited the infrastructure requirements, to focus on the elements that are essential to delivering the strategy, in the most cost-effective way.
That was a challenge, but I am pleased to say it has proved to be the correct decision. We have not revisited the waste strategy, just the way in which we deliver some elements of it, and by adopting a slightly different approach we believe we can achieve the objectives that were agreed by the States.
Negotiations with our bidder group are ongoing, and there is still work to be done, but we are in a position now to give members some reassurance with regard to the costs.
In terms of construction, we have received the revised bid for the proposed facilities at Longue Hougue. That is now being evaluated by an independent Quantity Surveyor, to ensure we achieve best value, but we believe we are very close to achieving the infrastructure that we need within the budget agreed in 2014.
We no longer propose building a dedicated facility for processing food waste, as originally planned, but instead we are looking to export this material for treatment. Not only will this be more cost-effective, it has other additional benefits, such as significantly increased energy recovery and reduced risk in terms of markets of the outputs. Therefore rather than pursue the more expensive option of a large, on-island facility, we have adapted the design of the proposed main Waste Transfer Station so that is equipped to accommodate this different approach.
Whether we proceed with that element of the new facility will depend on a satisfactory business case being made for the separate collection and treatment of food waste. We are now in a position to begin finalising the costs of all the various elements, so we will shortly have the information we need to make that assessment. Cost will be important in the decision, and if we do not believe it delivers value for money then we still have the fall back of being able to export this material along with general waste.
The planned new facilities at Longue Hougue also include a new household waste recycling centre, as was proposed in 2014. That will incorporate a repair and reuse element, which is a key part of the waste strategy, and we are in discussion with local not-for-profit organisations who have expressed an interest in providing that repair and reuse service.
We are not however proposing to build a materials recovery facility for household recyclables at Longue Hougue, which was included as an option in our tendering. The alternative was to procure this through the private sector, using an existing site and just such a facility has been commissioned for the introduction of the kerbside recycling collections, and we are in negotiations to continue using that in the long term.
The other element which was included as an option in 2014, but which we no longer believe is required, is a fleet of kerbside collection vehicles.
The export contract has been a separate procurement, and we received submissions from a number of bidders in mid-January. These are also now undergoing detailed evaluation, and later this month we should be able to identify the preferred bidder and destination.
All of the revised proposals are still subject to a full business case, in the same way as the original scheme would have been. That is where we will need to demonstrate that the approach we are putting forward represents best value for money. That has always been our priority, and has remained our focus throughout.
The business case will also include all the operating costs for the various facilities and other service elements. We still aim to deliver the entire strategy within the overall costs that we indicated in 2014, which at the time equated to an average cost per household of somewhere in the region of £200 to £300 a year.
The fact that we had to revisit the original proposals in light of initial cost estimates inevitably meant we have incurred delays to the original timescale. That is regrettable, but we are now reaching the end of this process. We have a planning application in for the new facilities at Longue Hougue, in line with our revised proposals. Subject to all of this, and the full business case, we expect to begin construction early next year, and have the strategy fully implemented in 2018. It is important that we maintain timely delivery of the programme because as States Members will be only too aware, Mont Cuet is filling up.
We are still committed to delivering the services and facilities we need to deal with the waste the island produces in a way that is affordable, sustainable and reflects the specific requirements, values and aspirations of this community. And we are still aiming to deliver the strategy and the objectives within the overall costs already agreed.
-ENDS-
