Cambridgeshire signs 730m waste PFI contract

The council will make an official statement later today (April 8) that financial close has been achieved on the 28-year deal, though the agreement was actually concluded on March 11.

Speaking to letsrecycle.com this morning, the council's head of waste management Bernard Warr explained that an official announcement of the deal had been delayed to allow for a ceremonial sod-cutting that will take place later today at the Waterbeach site of the planned MBT.

The plant will have the capacity to process 170,000 tonnes of waste a year.

Expressing his relief at the deal having reached financial close, he revealed that: “There were times when you thought, 'what's the next problem going to be?'”

In particular, he revealed that the passage of the deal had been delayed by issues with principle sub-contractors for the MBT plant, including a period of 2-3 months spent trying to “nail down the price” for the facility.

Problems also arose when German firm Stadler pulled out of its contract to provide machinery for the plant last December.

“Another German company, Komptech, filled in, but they then had to go through the compliance process,” Mr Warr explained.

With Cambridgeshire currently recycling and composting 51%, or roughly 150,000 tonnes, of its waste, the council hopes the new plant will play in helping to avoid future landfill charges.

“We think we've just about scraped through on 2009-10 landfill targets,” Mr Warr explained. “But having the plant available will give us a bit more breathing space.”

Site 

Alongside the new plant, which will be built at Donarbon's existing waste management site, the company will also provide a visitor centre, as well as new in-vessel composting facilities for kerbside collected kitchen and garden waste.

The deal also involves the design, build and operation of two new waste transfer stations, at Alconbury and March, with Mr Warr indicating that the former location opened earlier this month.

Also included in the contract, which was provisionally approved by the county council last April (see letsrecycle.com story) is the management of 11 household waste recycling centres across the county, with Donarbon expected to build two new facilities and replace two existing centres.

With today's official launch of the MBT plant, Mr Warr indicated that the project was aiming towards starting a year-long period of hot commissioning in September 2009.

He explained: “To satisfy the Environment Agency on bio-remediation, they want to study it for a year before it becomes operational.”

Donarbon has appointed civil engineers Nuttall to design and construct the plant, working towards a November 2009 completion date, in a deal valued by the construction company at £41 million.

A representative from Donarbon was unavailable for comment.