Far North District Council has awarded a 10-year contract worth around $50 million to Northland Waste Limited to operate the Far North District Council’s network of refuse transfer stations and community recycling centres.
Northland Waste will take over operations of the Far North’s southern areas from Waste Management on 1 October 2024 while continuing to operate the northern sites, the Council confirmed in a statement.
The current contracts expire on 30 September 2024. Kerbside services will continue to be provided independently of this contract as user-pays services.
The contract length was chosen after consultation with potential suppliers as it relates to the life expectancy of assets such as bins, trucks, balers etc and allows for the cost recovery of those items to be spread across the longest possible time, the Council said.
“The tender was initially offered as six portions to separate the capital-intensive activities to make the facility operations contract more accessible to smaller tenderers. However, it was recognised that the package put forward by Northland Waste to operate all sites offered the best service and value for money while retaining a proven operator,” it said.
“Having served the Far North for more than 15 years, Northland Waste has strong foundations in the area. In addition to its core services, the company is committed to community involvement and development, having donated and sponsored many local initiatives over the years.”
Northland Waste chief operating officer, Andrew Sclater said the company was excited to provide additional local job opportunities.
“An important element of the service was its potential to stimulate local employment,” he said.
The contract includes a provisional price for kerbside services. These were included because last year, the Ministry for the Environment stated its intention to standardise kerbside recycling nationally and mandate providing kerbside recycling by 2027, Council said.
“Legislation for this hasn’t been passed by the current Coalition Government.”
“The introduction of standardised kerbside recycling, and other additional services, haven’t been decided on yet. The public will be consulted on introducing additional solid waste services alongside consultation on revising the council’s Solid Waste Management and Minimisation Plan later this year.”
