An unsuccessful bidder has launched a legal battle against the Merseyside Waste Disposal Authority (MWDA) following a controversial decision to award a £1bn energy-from-waste contract to SITA UK.

The Ellesmere Port-based company Covanta issued legal proceedings on 4 July against the MWDA, following their decision in April to award preferred bidder status to SITA UK, which is based in Teeside.

Last month, Liverpool mayor, Joe Anderson criticised the move as a ‘missed opportunity' and demanded to know why the contract had not been awarded to the local bidder.

Ellesmere Port MP Andrew Miller and the chairman of the Peel Group, John Whittaker have also questioned why the contract was not awarded to Covanta.

‘With so much at stake, surely the waste authority should reconvene, without prejudice, and look again at their processes,' said Mr Whittaker.

The chief executive of the MWDA, Carl Beer, said: ‘Whilst it is appreciated that an unsuccessful bidder will naturally be disappointed at the outcome, MWDA has conducted an extensive and fair procurement process over several years and is confident that the most economically advantageous solution has been selected for Merseyside.'