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Record 100m PFI boost for Manchester waste and recycling

The Greater Manchester Waste Disposal Authority has won the largest-ever Private Finance Initiative award for waste management, with a 100 million pledged by Defra today.

Environment minister Elliot Morley also announced today that 34.5 million in PFI credits will go to the London borough of Southwark. And, 35 million will be provided to help attract private sector investment into local waste services in Cambridgeshire.


”With some determination inner cities can find solutions to help them meet the unique problems they face in modernising their waste management services. “
– Elliot Morley

Since 1997, PFI credits have been awarded to support waste management contracts for 21 authorities, nine of which are already in full operation. Previously, the largest PFI award had been 75 million for Lancashire.

Manchester
The PFI award for Manchester will support a new long-term waste management contract with the private sector that could be worth as much as 2.5 billion. The Greater Manchester Waste Authority provides waste services for 958,000 households in Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tamesire and Trafford.

Manchester generates 5% of the UK's household waste, about 1.5 million tonnes of material each year, a volume likely to grow by about 3% year-on-year. If the PFI deal achieves its aim, a target 50% recycling or composting rate would see 32.6 million tonnes of municipal waste diverted from landfill over the 25 year period.

Announcing the PFI award for Manchester, Mr Morley said: “The size and scale of the project would represent an attractive opportunity for new companies to enter the waste sector and increase the market capacity in this sector.”

Southwark
The inner city borough of Southwark is to use its 34.5 million to improve its 11% recycling rate to 50% by the end of a new 25-year contract. Defra said by 2020 the borough would be diverting 133,000 tonnes out of the 188,000 tonnes of waste produced each year.

Southwark plan to achieve this by launching new recycling collection schemes, education and awareness programmes and through an expansion and improvement of existing collection schemes, chief of which is the collection of recyclables through “survival bags” from medium and high rise properties.

Mr Morley said the project could set an example to other inner city councils. He explained: “This ambitious project shows that with some determination inner cities can find solutions to help them meet the unique problems they face in modernising their waste management services.”

Cambridgeshire
The 35 million award for Cambridgeshire will support a 25-year waste management contract that aims to landfill rates in the county by two thirds. Recycling and composting rates should be nearly doubled to 54% by 2011 under the arrangements, even as the local population is expected to grow substantially through the contract period.

Residents in Cambridgeshire produced one of the best two performances on recycling among English counties (see league table) in 2003/04, with 29% of its 293,187 tonnes of household waste being recycled.

Related links:

Defra: PFI

GMWDA

Southwark council

Cambridgeshire county council

Mr Morley said: “I’m delighted the Cambridgeshire have produced a scheme with high aspirations: targets exceeding statutory requirements and plans that not only equip residents and local business with what they need to move to more sustainable waste practices, but serve the future needs of the local community by planning strategically for the long term.”

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