Waste Disposal Project Agreement

The purpose of this Voluntary Ex-ante Transparency Notice is to inform the market of the additional services to be performed by SUEZ Recycling and Recovery Surrey Ltd ("Contractor") following the amendment of its waste disposal project agreement with the Authority ("Contract").

The Contract is for a term of 25 years expiring on 19 September 2024 and includes the provision of waste treatment facilities and a right to extend the contract term in certain circumstances. The last facility to complete is works relating to an EcoPark at Charlton Lane, Shepperton, Surrey (the "EcoPark"). The EcoPark includes an Anaerobic Digester Facility (the "AD Facility") and an Energy from Waste Facility using gasification technologies (the "Gasifier") (the AD Facility and Gasifier together, the "Facilities").

There is a requirement for continuity of service with the Contractor due to the Facilities having incurred delay in commencing waste treatment service. Arbitration proceedings with the Contractor had been commenced in relation to certain matters relating to the Gasifier and these proceedings have now been settled on terms that include the implementation of the variation of the Contract upon the basis set out in this Voluntary Ex-ante Transparency Notice.

This Voluntary Ex-ante Transparency Notice gives notice that the Authority proposes to vary the terms of the Contract to among other things, extend the provision of current services but on the basis that certain services can be phased out of the Contract over the extended term of the Contract. The Contract will have a term expiring on 1 October 2029, with the option for the Authority to break on 1 October 2027.

Accordingly, the proposed variation to the Contract will extend the current provision of the services and operation of the Facilities and, provide the Council with the right to phase out certain services over the remaining term enabling the Authority to achieve its waste strategy whilst preserving continuity of service.