The council had originally intended to shortlist four interested waste management companies by the end of 2005, but the process was frozen to look at the impact of the Mayor's bid to take extra powers on waste.
” Despite the rigid Treasury rules, we have found a way to protect the position of Southwark Council tax payers. “
– Cllr Richard Thomas, LB Southwark
Following a review of the situation, Southwark has now decided to go ahead with its search for a private sector waste contractor.
The council told letsrecycle.com the “risks are too great” to delay the process any further, because of the borough's Landfill Allowance Trading Scheme obligations.
Cllr Richard Thomas, Southwark Council's executive member for environment and transport, said: “I'm delighted that our plans to radically transform the way that we deal with our waste are back on track.”
Site
A site on the Old Kent Road has been identified for major new waste infrastructure needed to divert waste away from landfill under the Private Finance Initiative arrangements. Exactly what kind of treatment plant will be located at the site of an old gas works will be down to the proposal by the successful waste company.
It is likely that the site will include a materials recycling facility, however.
In anticipation of waste disposal responsibilities switching to the Mayor's single waste authority, the council has decided not to fund the site through existing funds. Instead, Southwark will borrow sufficient money, allowing the debt to be passed on to the single waste authority if Ken Livingstone's bid for control succeeds.
Cllr Thomas said: “Despite the rigid Treasury rules, we have found a way to protect the position of Southwark Council tax payers. It now means that we're one step closer to introducing one of the most innovative and sustainable strategies for managing waste in the country.”
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Those companies that were originally selected to tender for the contract will now have their offers looked at again, in order to ensure that they are still relevant and Southwark said that it hopes to reveal the companies chosen within the next few months.
Southwark has been promised 34.5m in government PFI credits to help the contract, which is likely to run for a 25-year period. The borough currently handles about 137,000 tonnes of waste each year, recycling about 10%.
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