Greater Manchester extends waste contract with Suez until 2034
Greater Manchester Combined Authority (GMCA) has extended until 2034 its recycling and waste management contracts with Suez Recycling and Recovery UK in a deal worth over £800m over 8 years.
The original seven-year contracts were signed in 2019, with the facility to extend by up to a further eight years from 2026.
Greater Manchester is the largest waste disposal authority in the UK and has built in a strong requirement for social value and community projects.
Controlled by French utility group Suez SA the UK business is the third largest waste recycling and recovery company in the UK, behind Veolia and Biffa, with a “unique position in developing new waste treatment activities in line with recent national regulatory developments”.
Suez recycling and recovery UK has a portfolio of more than 25,000 industrial and municipal customers, employs around 6,000 people and generates turnover of more than £900 million.
According to the accounts of Suez Recycling and Recovery UK in the first year of the contract their rise in turnover of £72m was “largely attributable” to the GM contract. However, Suez has claimed that the contract was worth £1bn, but following questions from TheBusinessDesk.com have settled on a figure of £800m over 8 years.
The contracts are also the first in the UK to mandate a strong emphasis on social benefits, with £1.3m for charities and community projects already ploughed back in since 2019.
GMCA claim the tender for the contracts, with social value worth 15% of the marks (rather than a public sector procurement norm of 2-3%), led to SUEZ developing 54 ‘social value commitments’ which have delivered wide-ranging social, environmental and economic benefits across Greater Manchester estimated to be worth over £1bn over the initial 7-year term of the contracts.
Other innovations include setting up a network of Renew shops which have diverted more than 260,000 individual items to reuse, raising more than £1million for good causes across Greater Manchester, including £100,000 a year to the Greater Manchester Mayor’s Charity, which tackles homelessness and rough sleeping in Greater Manchester.
Suez also has a partnership with the social enterprise, Recycling Lives, who run the electrical repair pod at the Renew Hub in Trafford Park.
Caroline Simpson, Group Chief Executive to GMCA, GMFRS and TFGM said: “It is good news for Greater Manchester residents that we have extended these waste management contracts. Under our unique devolution deal, we are making sure that these contracts push the boundaries on delivery of social value for the city region through public sector procurement, developing a model that is seen as best practice nationally.”
She added: “Our partnership with SUEZ has also seen a significant improvement in performance with only 0.2% of waste going into landfill and HWRC recycling close to 60%. Waste management in the UK faces several challenges in the future from major policy reform and I have every confidence that GMCA and SUEZ are well placed to meet those challenges and to continue to provide excellent waste management services for our residents.”
Sabrina Soussan, Chairman and CEO of SUEZ welcomed the renewal, and said it underlined “the long-term trust we’ve built” and “Suez’s commitment to creating economic and social value for our customers, through innovative and resilient solutions.”
John Scanlon, Chief Executive Officer for SUEZ recycling and recovery UK said: “I’m proud of the innovations we have delivered to reuse and recycle more of Greater Manchester’s waste in our first five years of partnership with GMCA. The extension to our contracts is testament to the collaborative approach that defines our relationship and I’m delighted GMCA has chosen to continue to partner with SUEZ to navigate the coming years of change and transition as we work together to create a more resource-efficient circular economy.”
Cllr Tom Ross, GMCA’s lead for Green City-Region, said: “It is great to see our very successful contract with SUEZ extended, providing security for jobs and investing in Greater Manchester’s waste and recycling ambitions. We are very happy with what we have achieved with SUEZ, including our fantastic Renew Hub, and are excited for our plans going forward.”
Lead picture caption: (Top left) John Scanlon, Chief Executive Officer for SUEZ recycling and recovery UK, (bottom left) Caroline Simpson, Group Chief Executive to GMCA, GMFRS and TFGM, (top right) David Taylor, GMCA’s Executive Director of Waste and Resources, (bottom right) Sabrina Soussan, Chairman and CEO of SUEZ.
