Veolia is set to take over the provision of waste collection and disposal services on the Isle of Wight following Thalia Waste Management’s decision to walk away from its £225million contract with the Isle of Wight Council.
The news comes just days after Island Echo exclusively reported that Thalia – formerly Amey – would be walking away from its multi-million-pound, 25-year contract, with the Council urgently seeking a replacement to ensure bins continue to be emptied across the Isle of Wight.
It has now been confirmed that Veolia ES (UK) Limited will take over the waste management contract from April 2026, under a deal initially lasting for 2 years.
Veolia Environmental Services will begin working with the Isle of Wight Council from early next month, with the first 3 months of 2026 dedicated to consultancy and mobilisation, assisting with the early termination of the current agreement and preparing to assume operational responsibility.
The contract – worth up to £60million including VAT – was directly awarded to Veolia due to what officials describe as ‘extreme and unavoidable urgency’, making a formal competitive tendering process unviable.
From 1st April 2026, Veolia will take over full household refuse collection and disposal services across the Isle of Wight. The agreement is set to run until 31st March 2028, during which time the Isle of Wight Council intends to retender for a new long-term arrangement, similar to the original 25-year deal Thalia is stepping away from.
It was in November 2015 that Amey took over from Island Waste, operated by Biffa. Amey later transitioned to Thalia in 2023, focusing primarily on the waste treatment side of the business under parent company Ferrovial.
Thalia’s time on the Isle of Wight has not been without issues. The Forest Road energy recovery facility only came online at the start of this year – 6 years later than originally planned. During their tenure, one worker tragically died in a bin lorry incident in Ryde, and another was seriously injured at Lynnbottom Tip.
A spokesperson for the Isle of Wight Council has said:
“The council wishes to reassure residents that waste collection and disposal services will continue without interruption during this period”.
Viva la France.
Let’s hope it’s not a”waste of tax payers money “
It appears to be already. The original contract was worth £9m a year over 25 years, and they’re paying this lot £60m for 2 years! Should have used an established company last time. All we hear about is how much money the floating bridge costs tax payers, Forest Rd plant must be much more. Six years late, and still not working properly.
It will be a waste of tax payers money.
Councils and Governments are good at wasting our
hard earned cash.
It would be beter if the countries finances were managed
by qualified accountants who understand finance.
Something doesn’t stack up here. A Company can’t just “walk away” from a long term multimillion pound contract at short notice without consequences – most certainly involving a Penalty Clause or Consequential Damage payments to the other Party, i.e. the Isle of Wight Council.
How convenient that another waste management company was waiting in the wings to pick up this multimillion pound contract at short notice, which in the words of the Isle of Wight Council “making a formal competitive tendering process unviable”.
Can’t we just do it ourselves like all councils used to.
Competitive tendering unviable equals Brown Envelopes to certain council officials.
Amazing how everything out council touches turns to sh1t. How can a 25 year contract go so spectacularly wrong so early on.
“extreme and unavoidable urgency’, making a formal competitive tendering process unviable.”
Of course, that will be the excuse the IW Council will use when we are hit with the maximum council tax rise in April.
Any one know why Thalia are breaking the contract?
And how much money are Thalia paying to IOW County Council for early release from the contract? They will be in breach and there should be financial penalties of the contracts were let properly