Leicestershire County Council has shortlisted bids from Osiris and Veolia Environmental Services to build a new waste plant which will deal with up to 180,000 tonnes of residual household waste by 2040.
Two years ago, the Government granted Leicestershire £87m in private finance initiative credits to develop a facility. The procurement process began in November 2008.
Eight companies were asked to provide outline proposals and last summer three bidders were shortlisted: Biffa, United Utilities/John Laing and Veolia.
Following detailed evaluation against set criteria, the council has shortlisted:
• Osiris (a consortium made up of United Utilities Waste Management, Costain Engineering and Construction and John Laing Investments) is proposing a mechanical treatment facility (MTF) to produce a refuse derived fuel (RDF) for gasification.
The facility would be located at the council-owned Bardon site.
• Veolia Environmental Services is proposing an energy from waste facility which would be located at the council-owned Bardon site.
Both of these proposals generate electricity and, in addition, would also be capable of generating heat.
Tony Kershaw, Cabinet member for waste, said: “This is not the end of the process. We will now meet with the remaining bidders and continue our discussions to achieve the best solution for Leicestershire.”
The council will invite final tenders later this year. Subject to planning consent and construction, it is hoped that the facility will be open by April 2015.