THE company responsible for managing Bolton’s waste services has been told it will not have to pay out a massive compensation package.

Waste disposal giant Sita UK wanted compensation after it lost out in a bidding war for a £4 billion contract to serve Greater Manchester for 25 years.

But its hopes were yesterday dashed by top judges following a long-running legal battle.

Sita accused the Greater Manchester Waste Disposal Authority (GMWDA) of violating procurement rules when it awarded the contract to arch trade rivals, Viridor Laing, in April, 2009.

Viridor Laing was earmarked as the authority’s “preferred bidder” in January, 2007, and Sita was told its “best bid” had been marked 63 out of 100, whereas its rivals scored 70 out of 100.

However, Sita fought to re-open the bidding process and claimed Viridor Laing was handed an unfair advantage.

Sita said the contract, eventually signed in April, 2009, was worth £3.8 billion to Viridor Laing — £500 million more expensive than the bid put in by Sita, which said it would have done the job with a smaller workforce.

The company also argued that the £640 million “construction programme” involved in the Viridor Laing bid was “much higher”

than would have had to be spent had Sita won the contract.

However, such claims have to be launched “promptly and in any event within three months” of grounds for complaint first arising and Sita had its case against the authority “struck out” last year by Mr Justice Mann, who said the company had lodged its case too late.

Despite a last-ditch bid to overturn that decision at the Court of Appeal, Sita’s challenge was yesterday dismissed by three of the country’s most senior judges.

Following the hearing, Cllr Neil Swannick, chairman of GMWDA, said: “It is good news for the authority. GMWDA carried out the procurement of its 25-year recycling and waste management contract fairly and according to procurement law, and we are very satisfied with our decision in 2009 to award the contract to the Viridor Laing consortium.

“The judgement is lengthy and we want to take the time to consider it carefully and in detail.

“However, I am glad we can now concentrate on delivering our world-class recycling and waste management vision for the people of Greater Manchester.”