The ultimatum came this week after the council met with Herhof UK to seek assurances over the Leyland plant following news that Herhof's German sister company has gone into administration (see letsrecycle.com story).
Lancashire has written to the company giving it two weeks to confirm the ability to complete the plant, which would have the capability to process up to 120,000 tonnes of mixed household waste each year.
Failure to do so would mean Lancashire seeking a different company to provide MBT technology for the plant.
” We have asked for clarification on Herhof's financial situation in writing and the company has two weeks to respond. “
– Lancashire county council
A spokeswoman for Lancashire county council told letsrecycle.com: “We have asked for clarification on Herhof's financial situation in writing and the company has two weeks to respond. We need to know whether the German Herhof is still in a position to supply the technology for the plant. If not, Lancashire will need to seek an alternative technology provider.”
Financial difficulties at Herhof are believed to have arisen because the company is building a number of MBT plants simultaneously in Germany, which may have overstretched resources.
Lancashire has said if Herhof's German arm is unable to provide the technology for the Leyland plant, Herhof could still be offered the contract to run the plant – but with technology provided by another firm.
Ultimately, if it is not possible to carry out existing arrangements, the council has said it may include the Leyland plant in the wider Private Finance Initiative-backed waste contract currently in procurement.
| Related links: |
Delay
Planning permission for the proposed MBT plant, at a site in Leyland Park, has already been granted by Lancashire. Permission was gained in December, and expectations had been that construction would begin this summer. If a new technology provider now has to be found, the project's construction could be delayed until until at least the middle of 2006.
Herhof were unable to comment on the council's ultimatum at this time.
Subscribe for free