City recommends new $9M per year processing, marketing contract with Ontario recycling giant

City councillors willconsider giving one of the largest recycling companiesin Ontario a $9 millionper year contract next week to handle recycling processing, sortingand shipping in Winnipeg.

Canada Fibersoffered the lowest bidbut the decision wasn't based solely on cost, said Coun. Brian Mayes, chair of the water and waste committee.

"It had the expertise as well to operate and be flexible," he said.

Cascades Recovery, Emterra, Miller Waste Systems and Ricova International were the four companies that lost the bid to Canada Fibers.

The contract would extend until July 31, 2029 with the option of five one-year extensions. No new funding is required, city staff said.

There iswiggle room built into the agreement, said Mayes. For example, if in a year or two the city wants to start recycling plastic grocery bags, they can amend the contract to include that.

"We're not locked into a factory here that can't do that. We have to have some flexibility," he said.

While collection is handled by separate companies, Canada Fiberswould be responsible for processing and sorting,as well as marketing and shipping waste to potential buyers. If Canada Fibersis awarded the contract, it would begin in September next year, after the city's current contract with Emterra expires.

In JanuaryEmterra, which has handled the city's recycling sorting and shipping since 2002, said it would need $1.5 million more over two years to continue sending recycling to China, after the country began banning 24 types of solid waste.

Canada Fibersalready processes recycling in 14 communities in Ontario, includingToronto. The company says it handles 60 per cent of the province's blue-bin waste.