Bidder launches legal action after missing out on £1.2bn waste contract

An aggrieved bidder is taking legal action over a £1.2bn waste contract awarded by Merseyside Recycling and Waste Authority (MRWA) in April.

MRWA awarded Sita the contract to handle its waste and recycling for 30 years.

Rival bidder Covanta is to contest the decision, challenging its fairness saying that aspects of its bid were improperly assessed.

The deal has also drawn local criticism as it involves shifting waste by rail to Sita’s combined heat and power plant on Teesside, meaning some 50 jobs would be created there instead of in the Merseyside area.

Liverpool’s Labour elected mayor Joe Anderson has attacked the deal for its impact on local jobs.

The MRWA said it “regrets this action by Covanta”. It recognised Covanta’s disappointment but said it “a conducted an extensive and fair procurement process over several years and is confident that the most economically advantageous solution has been selected for Merseyside”.

It promised to “vigorously defend the claim brought against it”, by Covanta.