MWRRG helps councils secure exemption to extend recycling contracts

The Minister for Local Government has granted an exemption to allow 40 Victorian councils to extend their recycling processing contracts to 30 June 2022. The exemption will allow the affected councils to transition to any new contracts finalised through the Recycling Collaborative Procurement (RCP). 

This is a milestone for the RCP, allowing these councils to take part in the statewide procurement without affecting project timelines.

MWRRG applied for the exemption under section 186 of the Local Government Act 1989 on behalf of councils who had contracts expiring in 2021.

Without the exemption the councils would have been required to formally tender for new contracts this year. It would have been unlikely councils could secure economically viable, short term recycling contracts that would allow them to continue with the procurement.

The exemption complements the implementation of the kerbside transition services required by the Victorian Government’s Recycling Victoria: a new economy.

Early market engagement

We are currently in the process of engaging a specialist to conduct early market engagement to inform the RCP project. Early market engagement is a formal process of researching the industry, in a strategic and collaborative way, before launching a procurement.

The findings of early market engagement will be used to inform and prepare for the procurement. It is not used for supplier selection.

Council clusters are being explored to provide councils economies of scale and maximise efficiencies in recycling. In drafting the proposed clusters, the seven Waste and Resource Recovery Groups (WRRGs) across the state have considered volume, location, logistical implications, current regional infrastructure projects and existing arrangements between councils and service providers.

The draft clusters will be tested during early market engagement with both industry and councils.

The findings of the early market engagement are expected late 2021 and will be shared with councils.

What is the RCP project?

MWRRG is working with six regional waste and resource recovery groups to lead a collaborative procurement for processing kerbside recycling on behalf of 79 local councils and three alpine resort boards.

The procurement may lead to new or upgraded materials recovery facilities to meet local needs. The RCP aims to improve the way Victoria manages kerbside, commingled recyclable material.

Our collaborative procurement approach offers large volumes of waste and recycling to the market, delivering economies of scale and greater certainty for industry. This will help drive investment and transparency, open the market to more players and reduce our reliance on international markets.  

By bringing the seven WRRGs together, we’re reducing the number of individual procurements in the market and driving costs down to councils and alpine resort boards.

The procurement is funded by the Recycling Industry Strategic Plan and will help deliver recycling infrastructure and household recycling reform—objectives of Recycling Victoria: a new economy.

 

Last updated: 07/06/2021