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Policy to practice: delivering Wales' national waste infrastructure programme


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This presentation was delivered by Taliesin Maynard at an APM event in May 2013.

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Policy to practice: delivering Wales' national waste infrastructure programme

  1. 1. Policy to practice: delivering Wales national wasteinfrastructure programmeAssociation for Project ManagementEur Ing Taliesin Maynard CEng MICE MAPMProgrammes Director23 May 2013
  2. 2. What I will cover• Background and policy drivers• Developing the procurement model• Challenges faced• Outcomes and benefits• ReflectionsWaste InfrastructureProcurement Programme
  3. 3. Setting the SceneWaste InfrastructureProcurement Programme
  4. 4. Context – the “what”• Established 2008• National strategy: Towards Zero Waste• £750m capital / £3.5bn revenue• Delivered through public private partnerships– Levering private sector capital– Accessing sector expertise– Transferring appropriate risks• Highly collaborative– 21 local authorities– 4 Ministerial portfolios– External delivery partnersWaste InfrastructureProcurement Programme
  5. 5. Policy – the “why”• Programme established to help address theaffordability of sustainable waste treatmentinfrastructure in Wales• Legislative drivers– EU Landfill Directive– Waste Framework Directive– Landfill Allowance Scheme– Waste (Wales) Measure• Evaluating technologies– Anaerobic digestion (AD)– Energy from Waste with high efficiency CHPWaste InfrastructureProcurement Programme
  6. 6. AD Circular EconomyWaste InfrastructureProcurement Programme
  7. 7. Risks of Failure• EU Landfill Directive– Statutory obligation upon member states– Reduce biodegradable municipal waste sent to landfill– In Wales, infraction fines could amount to £54m pa by 2020• Increasing cost of landfill, including landfill tax, combined with thedecreasing availability of landfill capacity– Projected to become unavailable in some regions within 6 years• Greater public expectation for improved service performanceWaste InfrastructureProcurement Programme
  8. 8. Waste InfrastructureProcurement Programme
  9. 9. Programme Foundations• Political support• FundingProgramme’s D-Day17 DECEMBER 2008• First Minister announcement• Ring-fenced funding package– £26m capital for AD– Residual projects agreed onbusiness caseWaste InfrastructureProcurement Programme
  10. 10. Designing the ModelWaste InfrastructureProcurement Programme
  11. 11. ChecklistProblemStrategyFundingTeamCommercial planProgramme
  12. 12. Role of Welsh Government – the “how”• Central strategic programme management function– Direct projects development– Multi-disciplinary procurement support for authorities• Co-ordination, commercial transaction and financial support– 7 food / organic waste projects (operational 2012-15)– 6 residual waste projects (2016-19)• Benefits include– Reducing procurement and bid costs through a synchronised programme– Co-ordinated projects and risk management with phased market release– Driving value for money through affordable and deliverable solutionsWaste InfrastructureProcurement Programme
  13. 13. Building the Team• Private sector expertise to complement WG senior management• Local Partnerships– Central support– Transaction model• Commercial Director• Targeted trainingWaste InfrastructureProcurement ProgrammeProgrammeOfficeTrans TransBestPractice
  14. 14. Early Market Engagement• Talking to the waste sector– Clarity / single lead authority for the hubs– Binding Inter Authority Agreements early on– Sort affordability up-front, timeliness and pace• Talking to finance houses and banks– Minimising public sector capital– Levering private finance• Talking to planners and permitting authorities– Increasing understanding– Easing the processWaste InfrastructureProcurement Programme
  15. 15. Commercial Strategy• Separate contracts tendered by a synchronised procurement process– Single contract with lead authority• Central pre-qualification• Streamlined competitive dialogue• Standard contract documentation• Ring fenced capital and revenue support• DBFO contract (15-25 years)• Reference sitesWaste InfrastructureProcurement Programme
  16. 16. Incentivising Delivery• Robust governance structure• Early identification and management of risk• Financial support linked to milestones– Project initiation– Healthcheck 1 – “readiness review”– Outline business case– Healthcheck 2 – “commercial review”– Full business case• Effective communicationsWaste InfrastructureProcurement Programme
  17. 17. The Partnership Imperative• Core need for strategic joint working– Improving relationships with delivery partners and stakeholders– Joining up to deliver cross-cutting priorities– Applying new thinking or trying new ways to overcome barriers• Welsh Government strategy but local authorities have obligation to deliver• Procurement model designed for strategic regional partnerships– Maximise economies of scale– Encourage the market– Facilitate investmentWaste InfrastructureProcurement Programme
  18. 18. Strategic Procurement “Hubs”Waste InfrastructureProcurement Programme
  19. 19. Waste InfrastructureProcurement ProgrammeFundingpackage /procurementstrategyProjectsMarketinterestFundersSkillsTrainingProgrammeHolistic Approach
  20. 20. Joint Working: Scope and Scale• Delivery partners– Welsh Government and 21 local authorities (plus advisory teams)– Different teams within WG (eg strategy, planning, rural affairs, finance, economy)– Waste Awareness Wales– WRAP– Environmental Health Protection Wales– AD Centre of Excellence• Joint working benefits achieved– Single PQQ to minimise cost/time for LAs and bidders– Sharing of expertise and experience– Collaboration to ensure best value for money– Real savings for the public sectorWaste InfrastructureProcurement Programme
  21. 21. Ongoing Partnerships• Project lifecycle support• Sharing of intellectual property• Inter-hub agreements• Potential future collaboration for pipeline projects• Guidance to other public sector delivery bodiesWaste InfrastructureProcurement ProgrammeScottish GovernmentEssex County CouncilEnvirolink North WestBath and NE Somerset CouncilScottish Futures Trust21st Century Schools Programme
  22. 22. Challenges FacedWaste InfrastructureProcurement Programme
  23. 23. Highs and Lows• Anti-Covanta campaigners head down to Westminster• Delight as plans for £400m Covanta waste incinerator in Merthyr Tydfil withdrawnwith immediate effect• Controversial changes to Covanta incinerator plans are rejected• Jobs warning if Viridor incinerator plan is rejected• Delight for campaigners after Newport incinerator plan thrown out• Plans for food scraps recycling plant a raw deal for community• Incinerator to heat Cardiff homes and offices under ambitious new plan• Anaerobic digestion of food wastes – more energy and more recycling of organicresourcesWaste InfrastructureProcurement Programme
  24. 24. Meeting the Challenges• Political– Local government and targets– Ministerial changes• Financial / Commercial– Addressing affordability up-front– Merchant solutions• Delivery– Policy objectives vs. commercialrealities– Building marketsWaste InfrastructureProcurement Programme
  25. 25. Outcomes and BenefitsWaste InfrastructureProcurement Programme
  26. 26. Projects’ ProgressWaste InfrastructureProcurement ProgrammeJan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15Central WalesNorth East WalesHeads of the ValleysSouth West WalesTomorrows ValleyProsiect GwyriADCardiff / ValeJan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15Prosiect GwyrddNorth WalesFood Waste ProgrammeResidual Waste Programme
  27. 27. Delivering National Outcomes• Treatment capacities / landfill diversion– 150,000 tonnes pa food waste– 700,000 tonnes pa residual waste• Significant contribution to renewable energy in Wales– c. 80MWe equivalent to 11% of Welsh homes• Carbon reduction– 3% pa target in the One Wales: One Planet SD strategy• Economic growth– £3.5bn Wales Infrastructure Investment PlanWaste InfrastructureProcurement Programme
  28. 28. Driving Benefits• Integrated with Value Wales’ community benefits programme– Inclusion of social clauses in public contracts– Tailored training• Economic / Social– Creating jobs, training and education opportunities– Supply chain contracts• Financial– Forecast savings c. £125m to date– Savings of £3.12m on first 3 contracts awarded• Environmental– Two facilities in construction (3MWe renewable)– District heat networks (Cardiff / Deeside)– Sustainable source of fertiliserWaste InfrastructureProcurement Programme
  29. 29. Proposed Cardiff Heat NetworkWaste InfrastructureProcurement Programme
  30. 30. Prosiect GwyriAD• £5m capital value• 11,000 tpa of food waste• 1MWe of renewable energy• 9,000 tpa biofertiliserWaste InfrastructureProcurement Programme
  31. 31. ReflectionsWaste InfrastructureProcurement Programme
  32. 32. Achieving National Recognition• Winner – Collaborative Procurement Initiative of the Year– National Government Opportunities Excellence in Public Procurement Awards, 2013• Winner – Project and Programme Award– UK Civil Service Awards, 2011“The Waste Infrastructure Procurement Programme team is leading the way forstrategic joint working across the public service in Wales.This innovative and exciting work can provide a blueprint for the future, not just forwaste management, but in other areas as well. Ministers and other public servicepartners are increasingly referring to this programme’s approach as the way forward forjoint working in Wales.”Derek Jones CB, Permanent Secretary, Welsh GovernmentWaste InfrastructureProcurement Programme
  33. 33. Three Key Enablers1. Build a strong team with the right blend of multi-disciplinary expertise fromthe public and private sectors with a track record of successful delivery2. Provide confidence for the market and funders to invest, engage early anddrive innovation through market led solutions and competition3. Develop genuine collaborative partnerships with a strategic imperative tohelp break down barriers and deliver cross-cutting prioritiesWaste InfrastructureProcurement Programme
  34. 34. QuestionsWaste InfrastructureProcurement Programme
  35. 35. Policy to practice: delivering Wales national wasteinfrastructure programmeAssociation for Project ManagementEur Ing Taliesin Maynard CEng MICE MAPMProgrammes Director23 May 2013