The tender process. In the present case, WRAP has issued a competitive tender in July 2001 inspired by EC public procurement procedures (7), in view to promote the creation of newsprint reprocessing capacity. The specific aim expressed in the tender procedure was to provide a subsidy towards the creation of a newsprint reprocessing facility in return for a commitment to use an agreed tonnage of waste newspapers and magazines recovered from the municipal waste stream as the raw material for the new facility. WRAP's waste input target was for the agreed tonnage to exceed 300 000 tonnes per year, and the facility to enter into production in 2003, with full capacity to be reached as soon as possible thereafter. The tender was submitted to two key conditions: first of all, the reprocessing facility has to produce newsprint, and must be located within the United Kingdom. Secondly, the reprocessing facility must use an agreed tonnage of waste paper per year recovered from the municipal waste stream as raw material input for the duration of the life of the facility. The agreed tonnage must be in excess of the aggregate amount of waste paper used by the successful bidder in a prior calendar year in its newsprint manufacturing facilities in the UK. Tenderers needed to specify the level of support required to bring forward their proposals, and to demonstrate technological developments and environ- mentalbenefits. Furthermore, the tender specification stipulated that any costing included in the tender bids should only refer to the activities and investments needed to achieve the required environmental benefits. Following the tender procedure, a prequalification pack was sent to five companies, four of which did prequalify and received a tender invitation document. Applications were finally received from two companies: Aylesford Newsprint Limited, and UPM Kymmene — Shotton (hereafter ‘Shotton’). Xxxxxxxxx Newsprint was appointed preferred bidder in November 2001, but during the discussion between WRAP and Aylesford Newsprint, it appeared that Aylesford Newsprint would not be able to enter into the level of contractual commitment which would enable WRAP to achieve its objectives. That is why WRAP reviewed its position, and appointed Xxxxxxx preferred bidder. The decision was taken on 18 January 2002. Discussions then followed between WRAP and Shotton, regarding the completion of the funding arrangements to enable the overall investment to proceed. The funding is subject to state aid cleara...