The rejection of Veolias plans for a large-scale energy-from-waste incinerator in Newport, does not affect its bid for the 1.1bn Project Gwyrdd contract, the waste partnership has said.
Waste management firms Veolia Environmental Services and Viridor are currently vying for the 25-year deal to treat around 180,000 tonnes of residual waste a year, on behalf of five South Wales councils.
Veolias proposals for the deal, for which a preferred bidder is expected to be named in the Autumn, include building a 260,000 tonne capacity energy-from-waste incinerator on the site of a steelworks at Llanwern to the east of the city of Newport.
Yesterday (July 25), councillors on Newport councils planning committee voted to refuse planning permission for the facility, despite the plans being recommended for approval by planning officers.
Concerns
According to councillor Ron Jones, chair of Newport councils planning committee, the plans were rejected due to concerns about transport problems in the area, as well as ecological issues, and he said they feared that Newport was being used as a dumping ground by the Welsh Government.
Following the decision, Project Gwyrdd, which represents Cardiff council, Caerphilly county borough council, Monmouthshire county council, Newport city council and Vale of Glamorgan council, has said that the failure of Veolias planning bid for the Llanwern facility will not affect the procurement of the contract.
A Project Gwyrdd spokesman said: The Project has two competitive bids competing for this vital procurement. Final tenders are expected shortly and a preferred bidder is expected to be indentified in early 2013.
In conventional projects, in other parts of the UK, planning isnt usually submitted until after contract award, so this decision doesnt alter the competitive nature of the procurement.
The design for the proposed facility had been made to reduce its impact on the environment and included plans to transfer heat into the adjoining steelworks site run by Tata Steel.
Appeal
Veolia has said it will study the details of the planning committees decision before considering an appeal.
A spokesperson for the company said: Veolia is naturally disappointed at the decision. Our planning application represents a major long-term investment in Newport and has been designed to be sympathetic with the local landscape and environment whilst supporting the further development of the steelworks site – a major source of employment in the area.
We are pleased that Newport City Council planning officers recommended the application for approval and will now study the details of the decision and reasons for refusal. In the meantime we reserve our position on an appeal.
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