The city and county councils have submitted a joint expression of interest to Defra for the Public Finance Initiative (PFI) support and are planning to meet on Friday to discuss developing a business plan for the contract.
John Hansed, head of streetcare and waste management at Derby city council, said that the councils are looking to let a contract from 2008 with a term of around 25 years.
“It is still early days,” he said, “If we are successful that we are then asked to submit a full business plan including the timetable for the contract is by the end of September.”
Because the two councils are still in the initial stages no decision has been made on what kind of waste processing technology they are looking for or targets to be included in the contract, Mr Hansed explained. He did not rule out energy-from-waste plants but said that new materials recycling facilities are likely to form part of the contract.
Brightstar
One company in the running is Brightstar Environmental, which already has planning permission to build a Solid Waste and Energy Recycling Facility (SWERF) at a site on Sifin Lane and won a contract from Derby city council to process municipal waste. However, the project has been delayed by financial and technical setbacks and construction still has not begun on the plant (see letsrecycle.com story).
Mr Hansed said that the city council is still keen to work with Brightstar but the problems need to be resolved before the contract can be pursued. “We still have the potential to continue working with Brightstar,” he said. “But as time goes on with the new contract it is less likely that we continue with Brightstar.”
The new technology company may form part of one of the business cases put forward by the private waste management sector for the PFI contract, Mr Hansed said.
Brightstar Environmental’s UK general manager Peter Cumberlidge said that although problems have arisen with the SWERF's pyrolysis and gasification process, he feels other SWERF technologies could still be used for Derby's waste.
“At the moment we are waiting to see what happens with Derby as it decides on its procurement and comes forward with proposals,” he said. “If we can offer something the council is looking for we will be hoping to tender for that.”
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