Three bidders in Spanish waste to energy PPP

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Three bidders in Spanish waste to energy PPP

The government of Guipuzkoa, Basque country (Spain), has announced that three consortia have submitted bids for the Zubieta waste-to-energy plant.

The selected consortia are formed by international companies and local firms. More specifically, the bidding teams are the following:

  1. Valoriza Servicios Medioambientales S.A. and Valoriza Gestión. S.A. (subsidiaries of Sacyr Group) and Construcciones y Promociones Balzola, S.A.
  2. Urbaser S.A., Meridiam Investments SAS, Altuna y Uria S.A, Construcciones Moyua S.L, Construcciones Murias S.A. and LKS Ingeniería S.COOP;
  3. Fomento Construcciones y Contratas (FCC) with Sartech Engineering, part of Sarralle Group.

The winning team will be responsible for the construction, finance, operation and maintenance of a waste to energy plant with capacity to treat approximately 200,000 tones per year. In addition, the consortium in charge of the concession will have rights on the revenues for the power generated, which is expected to be 160.000 MWh per year.

The concession contract will have a duration of 35 years. The total project investment is estimated at €217.6 million (US$243 million)

The preferred bidder is expected to be announced in November and construction works are scheduled to begin by January 2017.

The Consorcio de Residuos de Gipuzkoa (GHK), the entity in charge of the project's tender process, approved on 28 July the waste-to-energy PPP. GHK involves multiple local administrations as well as the provincial government of Gipuzkoa. 

KPMG, IDOM, and Garrigues, Deloitte are advising the administration for procurement of the project.

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