Third delay for Manchester PFI contract

A report which went before the Greater Manchester Waste Disposal Authority on Friday revealed that the deadline for closing the deal with preferred bidders Viridor and Laing has been put back once again, this time from next month to March 2008.

The set backs have already cost the Authority hundreds of thousands of pounds in consultant's fees (see letsrecycle.com story), after officers insisted in June that they had taken precautions to avoid financial problems associated with delay.

However, the GMWDA stressed that it was negotiating one of the largest contracts of its kind in Western Europe and explained that it was experiencing problems negotiating where to send its refuse derived fuel and at what cost.

A spokesperson said: “The reason for the delay in financial close is ensuring the right technological solution at the refuse derived fuel outlet at a known cost and agreeing the contractual arrangements.”

Treatment

Under Viridor and Laing's proposals, around 600,000 tonnes of Greater Manchester's waste which cannot be recycled will be taken to five new mechanical biological treatment and anaerobic digestion plants located in Salford, North & South Manchester, Oldham and Stockport.

These plants will create around 275,000 tonnes of a stabilised fuel which will be transported by rail to a new power generation facility that will supply both steam and electricity for use by chemical firm Ineos Chlor.

The 25-year contract will provide Greater Manchester with infrastructure to recycle more than 50% of the 1.4 million tonnes of municipal waste that it produces a year in Bolton, Bury, Manhester, Oldham, Rockdale, Salford, Stockport, Tameside and Trafford.

Despite the later contract date, the Authority said it had made “good progress” in project agreement and planning applications, where 16 have been lodged and five have been approved. The vast majority of service delivery plans, by which the contract will be implemented, have also been agreed.

Speaking on Friday, GMWDA chair councillor Neil Swannick, said: “The ‘world class' waste solution for Greater Manchester which includes the Ineos Chlor facilities, enables the Authority to show its active support and commitment to a climate change agenda, by using a plant which will produce combined heat and power.”