Wakefield council has revealed it expects to achieve financial close on its much-delayed waste PFI contract in February 2012, with the 750 million contract up and running a month later.
A consortium involving waste company Shanks and engineering firm Babcock is preferred bidder for the long-term contract, which is based around the development of autoclave, anaerobic digestion and materials recycling facility technology.
Shanks took joint responsibility alongside Babcock for bringing the deal to a close in February 2011, under a teaming arrangement that will see it take over the delivery of the contract once financial close is achieved (see letsrecycle.com story).
When Wakefield council originally named VT Group as preferred bidder for the contract in November 2007, it had hoped to achieve financial close in the summer of 2008. However, problems associated with the economic downturn have seen the target signing date pushed repeatedly back (see letsrecycle.com story). Babcock brought VT Group in March 2010.
In an announcement earlier this week (October 19), the Yorkshire local authority said it had agreed a February 2012 contract completion date with Shanks and Babcock. It also said the new services involved in the contract would start in March 2012.
And, it revealed that major enabling works would start in two weeks time on the site at South Kirkby where the waste treatment facilities being built under the contract will be located. The work will involve three redundant mineshafts on the site being located and inspected to ensure that the concrete caps which top the mineshafts are adequate. If necessary, remedial works will be carried out.
Wakefield stressed that the works, which will start in the week beginning October 31, are subject to final agreement from the Coal Authority and in line with the current planning permission for the site.
Outstanding details
Commenting on the progress being made on bringing the contract procurement to a close, Wakefield councils chief executive Joanne Roney OBE acknowledged that discussions had taken longer than expected, but said she was very pleased with recent developments.
Both the Council and the Shanks/Babcock teams are working closely to finalise the outstanding details, she said. Although the discussions with Shanks/Babcock have taken longer than first planned they are now entering the final stage and will bring this long process to an end.
I am very pleased at the positive progress which has been made and look forward to being able to award the contract to the consortium early in the New Year, which will bring significant investment into the district and better value for money.”
Cllr Maureen Cummings, the councils cabinet member for environment and communities, added that plans for the project were on track. Shanks will take charge of delivering the contract while Babcock will provide the engineering background for the autoclave which will be developed by local engineering company Joseph Rhodes, she said.
Shanks
For Shanks managing director Ian Goodfellow said the company looked forward to working with Wakefield council on developing the South Kirkby facility. This facility will enable us to significantly increase recycling and recovery rates and reduce the amount of local residents waste that will need to be sent to landfill, he explained.
Last year, VT Group/Babcock unveiled a full-scale trial autoclave unit in Wakefield similar to the three units that will developed at the South Kirkby site once the contract is signed (see letsrecycle.com story).
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