Councils have been able to apply for up to 25 million of PFI credits as a proportion of new waste management project funding. This cap is set to rise to 40 million, with higher bids also considered “for exceptional environmental solutions”.
A second change in the PFI waste criteria also announced by the government is a removal of references to incineration, to be replaced by a “greater consideration of the waste hierarchy”.
Commenting on the changes, environment minister Elliot Morley said: “It is important that we keep our waste PFI criteria up to date and equally important that those bringing forward the projects have their say in this process. That is why I am announcing my intention to consult on possible changes to the waste PFI criteria. I am also pleased to be able to make these immediate changes which will benefit all those currently looking at waste PFI.”
The increase in money available from PFI will come as good news to local authorities such as the Cambridgeshire and Peterborough Partnership, which is looking to bid for more than 35 million from the PFI to support a 600 million waste contract (see letsrecycle.com story).
The changing emphasis with respect to incineration is, the government said, in order to being the PFI waste criteria “in line with the government's view as laid out in the Waste Strategy 2000”. Proposals for PFI credits must show how projects will match or exceed local recycling performance standards under the Best Value system.
The use of residual treatment options, such as incineration, in PFI projects has to be justified in line with the waste hierarchy and must demonstrate that there will be no future barrier to recycling.
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