The contract will be delivered by Biffa plc through a “special purpose vehicle” – Biffa Leicester Ltd – with the main construction and operational elements of the scheme provided by Biffa Waste Services and Severn Trent Water Ltd. The project is being funded on balance sheet by Biffa Waste Services through corporate debt provided internally within the Severn Trent Group and was finalised earlier this month.
Malcolm Iley, head of the public sector department of legal firm Nabarro Nathanson, described the contract as “a pathfinder PFI project between Leicester and Biffa.”
He said: “We are absolutely delighted at the successful completion of this project. The scheme represents the culmination of sustained work by both parties and their advisers. We worked very closely with the council’s project team and with Biffa to overcome the challenges associated with a pathfinder project of this nature. Added value and innovative solutions were found to close the project.”
Over the next 25 years the contract aims to divert 70% of waste away from landfill solutions, opting instead for schemes promoting composting and recycling. The focal point of the scheme will be a 30m waste reception and recycling and composting centre to be built in the city, which will boast technology not yet available in the UK.
DEFRA approval
The project is expected to cost £300m in its entirety, and is the largest ever let by Leicester city council. The Department for Environment, Food and Rural Affairs (DEFRA) has approved part of the funding for the scheme through PFI credits, with the main construction and operational elements being provided by Biffa Waste Services and Severn Trent Water.
As part of its commitment to landfill alternatives, Biffa will undertake a weekly wheeled bin collection of glass, plastics and paper. It will also manage the city’s bottle, paper and textile banks. Leicester’s two community recycling centres will be run by Biffa, who also takes responsibility for future public awareness campaigns and promotion.
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