The ACCC proposes to authorise the Metropolitan Waste and Resource Recovery Group (MWRRG) and 3 regional waste and resource recovery groups (regional WRRGs) (and any successor appointed for MWRRG and the 3 regional WRRGs), and 27 metropolitan Melbourne councils and 8 regional Victorian councils (together, the Participating Councils) to conduct a collaborative tender process to procure sorting services for commingled household recyclable waste collected from residents’ kerbsides.
MWRRG has sought to revoke its previous authorisation AA1000451 and substitution with a new authorisation AA1000581, due to changes in government policy and in the make-up of the participating councils.
The ACCC considers that the joint procurement is likely to result in public benefits in the form of transaction cost savings, increased efficiencies, increased competition and environmental benefits. The ACCC considers that the proposed conduct is not likely to result in a public detriment.
The ACCC proposes to grant authorisation for 7 years and 8 months which encompasses 8 months to conduct the tender process, negotiate contracts and execute contract(s); and 7 years to give effect to the contract(s) for the supply of sorting services to the Participating Councils (including the administration of ongoing contract(s)).
The draft determination follows the ACCC’s decision to grant interim authorisation on 10 November 2021 to enable the commencement of the tender process, but not the execution of any binding contracts.
The ACCC now invites submissions in relation to the draft determination by 21 January 2022.
Further information about the ACCC’s draft determination is available on the public register at Metropolitan Waste and Resource Recovery Group (recycling sorting).