The ACCC has decided to grant authorisation to the Metropolitan Waste and Resource Recovery Group (MWRRG) and a group of 16 councils located in south-eastern metropolitan Melbourne (collectively, the Applicants), to conduct a collaborative tender process for the procurement of advanced waste processing (AWP) services. This may include the construction of one or more advanced waste processing facilities.
AWP involves processes to recover alternative resources (such as electricity or fuel) from residual waste which cannot be recycled and is typically destined for landfill.
The ACCC has decided to grant authorisation for 30 months to complete the tender process and 30 years to give effect to contract(s) for the supply of advanced waste processing services, until 8 July 2052.
The ACCC considers the Proposed Conduct is likely to result in public benefits in the form of transaction costs savings, increased operational efficiencies, environmental benefits and increased competition. The ACCC also considers that the Proposed Conduct is likely to result in limited public detriment due to a number of mitigating factors including the tender process will be competitive and transparent, the majority of potential AWP suppliers operate either nationally and internationally and there will be future opportunities to supply AWP services in Australia and elsewhere.
Authorisation provides a legal exemption where the likely public benefits outweigh the likely public detriments. Collective tendering and contracting by the Applicants, who would otherwise be competing to acquire their waste disposal services, may otherwise breach competition laws.
Further information about the ACCC’s decision is available on the public register at: Metropolitan Waste and Resource Recovery Group & Ors (advanced processing).