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Berkshire councils sign 600m PFI waste contract

Three councils in Berkshire have put pen to paper on a new 600 million waste and recycling contract with private sector partner WRG.

Reading borough council, Bracknell Forest borough council and Wokingham district council – under the banner of the RE3 Waste Partnership – have agreed to a 25-year deal to divert waste from landfill through recycling and incineration.


” With the environment now at the top of the national agenda, we are in a very strong position. “
– Cllr Rob Stanton, RE3 Waste Partnership

The contract, backed by 37 million in government Private Finance Initiative credits, will lead to new waste processing facilities at waste management parks proposed for sites at Island Road, Reading and at Longshot Lane, Bracknell.

Councillors have hailed the contract for its ambition to achieve high levels of recycling and composting using “state-of-the-art” technology.

Cllr Rob Stanton, who will chair a new Joint Waste Disposal Board for the partnership, said: “This complex process is a mix of state-of-the-art technical ability in waste management, combined with high levels of recycling and green waste compost facilities.

“Clearly, with the environment now at the top of the national agenda, we are in a very strong position,” Cllr Stanton added.

MRF
Of the two sites earmarked for new processing facilities, the Smallmead site at Island Road, Reading, will have a new materials recycling facility, waste transfer station and an upgrade of its existing civic amenity site.

The Longshot Lane site in Bracknell will also be redeveloped into a waste management park with an improved CA site and waste transfer facility. Both waste parks will have visitor centres established to raise awareness of waste issues locally.


” We are looking forward to getting to work in order to meet and exceed the ambitious recycling and landfill diversion targets. “
– Jim Meredith, WRG

EfW
Waste Recycling Group, now owned by Spanish firm FCC (see letsrecycle.com story), is also to develop energy-from-waste capacity for the RE3 contract for the treatment of residual waste.

Jim Meredith, WRG chief executive, said: “We are looking forward to getting to work in order to meet and exceed the ambitious recycling and landfill diversion targets that the people of Reading, Bracknell Forest and Wokingham have set themselves.”

Technical advice for the contract came from Jacobs, while finance advice came from Ernst & Young. Financial advisor Stephen Smith explained: “We have achieved an innovative, financially-efficient solution utilising a combination of existing regional facilities and new-build infrastructure funded by bank debt, representing value for money for the councils and local taxpayers.”

LATS
Recycling rates in Reading, Bracknell and Wokingham were 21%, 24% and 26.8% respectively in 2004/05, but the unitary authorities have tough targets to slash their landfill rates dramatically by 2020 under Defra's Landfill Allowance Trading Scheme.

Defra's local environment quality minister Ben Bradshaw has revealed his approval for the signing of the RE3 PFI contract so soon after Cornwall signed its PFI waste contract (see letsrecycle.com story).

Related links:

Reading BC

Bracknell Forest BC

Wokingham DC

The minister said the RE3 partnership was an “inspiring” example of how local authorities can work together to improve local waste management.

He said: “The waste sector is fast becoming a major sector for PFI and it is good to see an increase in the interest being shown by the banking and business community. The success of this sector will be key in delivering the country's EU Landfill Directive targets in the coming years.”

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