28 November 2013

SITA UK signs 25-year West London contract

A SITA UK-led consortium has signed a contract worth 760 million with West London Waste Authority (WLWA) for the treatment and disposal of residual waste in the area, it was announced today (November 28).

Starting in January 2014, the 25-year contract, worth 1.4 billion over its duration, will see SITA UK treat an estimated 300,000 tonnes of household waste a year from the 1.6 million residents of Brent, Ealing, Harrow, Hillingdon, Hounslow, and Richmond-upon-Thames.

SITA UK's 244m Severnside facility is due to be completed in 2016

SITA UK’s 244m Severnside facility is due to be completed in 2016

The consortium, which includes Scottish Widows Investment Partners and the ITOCHU Corporation, was named preferred bidder for the contract in April, and will take control of two rail-linked waste transfer stations at Transport Avenue and Victoria Road in West London as part of the deal. The agreement will also see 53 WLWA staff transferred to SITA UK.

Commenting on the WLWA deal, chief executive officer of SITA UK David Palmer-Jones said: I am delighted that we have managed to reach financial close just over six months after being announced as preferred bidder, which is testament to the hard work of all involved.

We now look forward to working with the Authority to make best use of these valuable materials.

Severnside

The Green Investment Bank (GIB) has invested around 20 million in SITA UKs Severnside Energy Recovery Centre, which will receive residual waste from WLWA transported by rail.

Based in South Gloucestershire, the 244 million facility has already been granted planning permission with construction due to begin in December and completion expected in 2016 (see letsrecycle.com story).

‘I am delighted that we have managed to reach financial close just over six months after being announced as preferred bidder, which is testament to the hard work of all involved.’

David Palmer-Jones, SITA UK chief executive officer

The 34MW facility, which could provide heat to local businesses, will enable WLWA to divert 96% of its waste from landfill and is expected to save over two million tonnes of CO2 emissions during the course of the contract.

GIB made the investment alongside a lending club made up of Credit Agricole Corporate & Investment Bank, Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corporation and Mizuho Bank, with equity to be provided by the consortium.

Commenting on the investment, Shaun Kingsbury, chief executive of the UK Green Investment Bank, said: The project will bring about an immediate environmental benefit; instead of residual waste from 1.6 million people being sent to landfill each year, it will be used to create enough energy to power the equivalent of 50,000 households.

Closure

On a visit to the Transport Avenue waste transfer station to mark the financial closure of the contract, Suez Environment chief executive officer Jean-Louis Chaussade said: Suez Environnement has a strong track record of delivering projects on time and we are proud to announce the financial close of this important project with the West London Waste Authority with no delay.

“Now that the contract has been signed, we can start our substantial investment programme immediately and will begin construction at Severnside within the next month.

Related Links

GIB

SITA UK

WLWA

Chair of WLWA Bassam Mahfouz added: For too long we have been sending our remaining waste to pile up and rot in landfill. This new contract means virtually nothing will be sent there in future and provides a sustainable and affordable solution that will turn waste into energy saving money as well as helping to save the environment.


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