Smaller firms can handle PFI waste contracts, says Donarbon

Since the first PFI waste contract was signed in 1997, the government-supported contracts have been dominated by large companies including Biffa, SITA, Veolia, Shanks and Viridor.

” It has been said that PFI is not competitive for SMEs, but we have proved you can do it. “
– Mark Davenport, Donarbon
Part of the problem has been the millions in costs faced by companies in the bidding process for PFI contracts.

But councillors in Cambridgeshire voted on Tuesday to select local firm Donarbon as preferred bidder for a 28-year waste treatment contract backed by 35 million in PFI credits.

Donarbon was preferred by the county council over bids from Shanks and Waste Recycling Group.

“Proved”
Mark Davenport, managing director of Cambridgeshire-based Donarbon, told letsrecycle.com: “We have proven that a small company can do the job, it is very expensive to tender but we have been successful. It has been said that PFI is not competitive for SMEs, but we have proved you can do it.

“There is a steer from government opening PFI up and I think other companies in our position will follow suite,” Mr Davenport added.

The new contract is expected to be signed in early 2007, with the council aiming to start at the beginning of the 2007/08 financial year.

MBT
Cambridgeshire's preferred bidder intends to build a mechanical biological treatment (MBT) plant at its existing Waterbeach landfill and recycling site, in order to process the county's residual waste.

Donarbon's proposed system was preferred by the county council over an alternative type of MBT system proposed by Shanks and an energy-from-waste incineration option proposed by Waste Recycling Group.

Commenting on the selection of Donarbon, Cllr John Reynolds, Cambridgeshire's cabinet member for environment and community services, said: “The amount of rubbish that Cambridgeshire people produce continues to grow and with thousands of new homes due to be built, it will only increase further. Reducing the amount of rubbish that is landfilled through reducing, reusing and recycling is vital and we will continue to make this our main aim.

However, waste treatment technologies also have a part to play in reducing the use of landfill as well as preventing Cambridgeshire being fined by Government for exceeding its targets. We look forward to talking further with Donarbon to bring these new and more environmentally friendly treatments forward,” Cllr Reynolds added.

Cambridgeshire is already recycling 50% of its household waste according to results for April to June 2006 (see letsrecycle.com story).

Under Defra's Landfill Allowance Trading Scheme, the county sees its annual limits for the landfilling of biodegradable waste dropping from 139,750 tonnes in 2006/07 to 109,638 tonnes by 2010, 73,026 tonnes by 2013 and 51,099 tonnes by 2020.

• Cambridgeshire planners have rejected plans to site a Household Waste Recycling Centre on land at Glebe Farm, Cambridge. Councillors recommended considering an alternative site located off the A10 near Hauxton, which has been used for waste treatment in the past. The public will be consulted on the new site as part of a six-week consultation on the county's Minerals and Waste Plan from November.