The Judicial Review launched by two Cheshire councils against Defras decision to withdraw over 100 million in PFI support for their joint residual waste treatment project reaches the High Court in Manchester today (June 16).
Cheshire West and Chester council and Cheshire East council initiated court proceedings in January 2011 on the basis of the methodology used by Defra to cut the funding in October 2010 being seriously flawed (see letsrecycle.com story).
They also claim that the assessment process used by Defra when deciding to cut the funding underestimated the benefits that the waste treatment scheme would deliver.
The 25-year waste contract, which was originally procured by Cheshire county council until it was split into two unitary authorities in April 2009, involves the treatment of around 180,000 tonnes-a-year of residual household waste and is worth almost 850 million.
Viridor emerged as front-runner for the project shortly before the withdrawal of PFI support was announced, and was confirmed as provisional preferred bidder in November 2010 (see letsrecycle.com story).
The companys proposal centres on the development of a mechanical biological treatment facility at Lostock Gralam, near Northwich, with the solid recovered fuel produced by the process being sent to the energy-from-waste plant Viridor is building in Runcorn, Cheshire, with INEOS Chlor. The MBT proposals secured planning permission in November 2010.
The councils this week highlighted the 4.5 million they had spent on the procurement process to date.
Ahead of the judicial review hearing, which is being heard by Mr Justice Longstaff and is expected to last for two days, the leader of Cheshire West and Chester council, Mike Jones, reiterated the councils arguments.
We decided to take joint action because we believe that the methodology used by Defra to assess the merit of our scheme was seriously flawed, he said.
It is also our opinion that Defras assessment process has under-estimated the benefits which would accrue from that scheme.
Defra
Defra revealed the rationale behind its October 2010 decision to cut PFI funding from seven waste projects in December 2010 (see letsrecycle.com story).
The department identified progress in procurement and securing planning permission as the two main factors behind its decisions, which were made as part of its efforts to reduce its budget by 29% by 2014/15 under the governments Spending Review.
The department had no comment to make on the case when contacted by letsrecycle.com yesterday (June 15).
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