PFI support from the government will contribute to the contract's total investment of 100 million. The value of the contract is 250,000 a year and when it commences Shanks will process in excess of 80,000 tonnes of waste a year.
The contract had been expected to be signed in September 2003, but had been delayed by discussions about the degree of risk and by fears of a judicial review over a proposed mechanical biological treatment plant.
Despite these issues, councillors gave their support to the contract with Shanks in a council meeting last week.
Chair of the planning and environment committee Joan Mitchell said: “We have signed up to make Dumfries and Galloway the best place in Scotland to live. This decision gives the green light to a very innovative partnership that will dramatically reduce the amount of waste we have to landfill and dramatically increase the amount of waste we compost and recycle.”
The contract has not been fully decided but has been agreed “in principle” by the councillors, a Shanks spokesman told letsrecycle.com. “We are delighted the council has given us there endorsement and we look forward to getting the contract finalised,” he said.
MBT
As part of the contract, Shanks plans to build an Eco Deco MBT plant at Locharmoss to process 60,000 tonnes of waste a year into fuel pellets. The Shanks spokesperson said: “That's going to be central to the strategy. It means we can close one of the three landfills, taking the council down to two landfills. That is a step in the right direction.”
The Scottish Environmental Protection Agency has issued a permit for Shanks for the proposed MBT plant. However questions have arisen over the risks the council might incur if an objector were to seek a judicial review of SEPA's decision.
Shanks also plans to invest in composting and recycling facilities in the Galdenoch area for up to 6,000 tonnes a year, and in upgrading a landfill site at Aucheninnes.
In addition to household waste treatment and disposal, Shanks will also be responsible for the management of Dumfries and Galloway's household waste recycling centres and recycling points.
Negotiations between Shanks and the council should be completed in the next couple of weeks and then the contract will be signed.
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