The ACCC proposes to grant authorisation to enable Gippsland Waste and Resource Recovery and a group of six Councils in Gippsland, Victoria (the Applicants) to jointly procure organic waste processing services until 1 July 2042. The six Gippsland Councils are: Bass Coast Shire Council, Baw Baw Shire Council, East Gippsland Shire Council, Latrobe City Council, South Gippsland Shire Council and Wellington Shire Council.
The ACCC considers the joint tendering is likely to result in public benefits in the form of transaction costs savings, increased efficiencies, environmental benefits and increased competition for the supply of organic waste processing services to the councils.
Each council will independently decide which supply option, either from the options available through the joint tender process, or through separately contracting with a supplier, best suits their needs. Accordingly, all potential suppliers, whether or not they are capable of supplying all six councils, will continue to have opportunities to compete to supply the councils. This approach is likely to stimulate greater competition for the proposed contracts, by leading to more tender participants than would otherwise be the case and by incentivising potential tenderers (both existing and new entrants) to compete more vigorously to supply the councils. Taking into account the above factors, the ACCC considers that the joint tendering conduct is likely to result in limited public detriment.
The ACCC also granted the Applicants’ request for interim authorisation in order to progress the tender process, with a view to then identifying appropriate suppliers and commencing the process of preparing contractual documentation. No supplier will be selected, or contract entered into, unless or until a final determination by the ACCC to grant authorisation.
Further information about the ACCC’s interim authorisation and draft determination is available on the ACCC public register at: Gippsland Waste and Resource Recovery Group & Ors