Finance for the development of the proposed Allerton Park energy-from-waste facility which had 65 million PFI funding withdrawn by the government is likely to be in place shortly North Yorkshire council has claimed.
At a meeting of the councils Harrogate area committee today (May 29), councillors have been the next steps towards securing the Allerton Waste Recovery Park near Knaresborough, part of a 25 year, 1.4 billion contract with AmeyCespa and North Yorkshire and city of York councils awarded in December 2010 (see letsrecycle.com story).
Defra withdrew PFI funding for the project in February 2013, after concluding it was not needed to meet 2020 landfill diversion targets (see letsrecycle.com story).
After dropping a judicial review into the decision earlier this year, the council has reiterated its belief that financial support can still be found for the site.
In a report presented to councillors this morning, the council has stated that that AmeyCespa is obliged to deliver a funding package detailing the final contract price, and expects the contractor to re-engage with the market to find alternative funding at a competitive process for the councils.
But, the report also states that the funding market has been fluid in recent years, with banks interest in supporting waste infrastructure project varying. The council is confident that it is in a robust position and that any final funding requirements will substantially reflect the commercial contract already in place.
Progress
The council report states: The long term waste project has suffered delays in securing planning consent due to unsuccessful legal challenge, but continues to progress towards a conclusion. The loss of PFI credits was disappointing and represents a significant financial challenge for the project but recent improvements in the funding market are likely to go some way to mitigate this loss.
It is anticipated that the Council will shortly receive details of the final funding package from AmeyCespa meaning that we can prepare a report for the Executive confirming the contract price and value for money of the project later this year.
The proposed Allerton project includes mechanical sorting and reclamation of around 20,000 tonnes of recyclable materials per year, anaerobic digestion and energy-from-waste facilities.
While planning permission for the facility was approved in October 2012, the incinerator was subject to opposition from the North Yorkshire Waste Action Group and communities secretary Eric Pickles, who called for a public inquiry but who eventually conceded not to call the application in (see letsrecycle.com story).
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