Gloucestershire awarded 92m in PFI credits

This will create a real incentive for the local authority and industry to work together to reduce waste 

 
Jane Kennedy

The council has based its reference project for the 150,000 tonne-a-year capacity deal on Energy-from-Waste, but has stressed that it will consider any technology options and potential sites during the procurement process.

Minister for the environment Jane Kennedy, said: “I can today announce the formal approval of Gloucestershire county council's bid for £92 million PFI credits to deliver new waste management infrastructure in the county.

“This will create a real incentive for the local authority and industry to work together to reduce waste and make better use of the waste that is produced, as well as reducing our impact on the environment,” she added.

The award of PFI credits marks Gloucestershire's second bid to gain Government funding for developing waste management facilities, after an attempt to procure funding for a mechanical biological treatment (MBT) facility was scrapped three years ago when the council decided that proposals for the project by Shanks and Cory Environmental were too expensive (see letsrecycle.com story).

Decision

The decision to embark on the PFI route for the second time came after the council consulted waste management firms in September 2007 about its medium and long-term residual waste treatment options (see letsrecycle.com story).

When submitting this latest bid, the council – which is the waste disposal authority for an area covering seven local authorities – had explained that PFI funding was essential to get the waste management project off the ground.

And, following the announcement, councillor Stan Waddington, Gloucestershire's portfolio holder for waste, said: “Naturally, we are very, very pleased. Even when the county council reaches its target of at least 60 per cent recycling and composting by 2020, the remaining 40 per cent still has to be managed.

“New waste facilities will mean that the county council will no longer need to bury its rubbish in landfill, which damages the environment. The council also has to pay heavy taxes and potential fines to government on the waste sent to landfill. These are becoming impossible to manage within the current county council budget, and will have a direct impact on council tax and other council services in the future.”

Following the PFI award, Gloucestershire is now set to issue its notice to prospective bidders in the Official Journal of European Union in the New Year, stating that the climate change impacts of any proposed technologies will be assessed during the procurement process.

The council plans to invite formal bids early next year, with the aim of awarding the contract in winter 2010.