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West Berkshire signs £500 million PFI deal

Veolia Environmental Services has signed a multi-million pound PFI contract in West Berkshire to provide waste management services over the next 25 years.

Full implementation will see the council ranked as one of the best in the country for the sustainable treatment of its household waste

 
Cllr Geoff Findlay, West Berkshire council

West Berkshire council has appointed the firm to take over waste collection, recycling, disposal and street cleansing services from its former contractor Biffa in a deal worth over £500 million.

The contract comes just months after Veolia won PFI deals in both Shropshire and Southwark (see letsrecycle.com story) and adds to Veolia’s growing contract portfolio in the UK.

Denis Gasquet, chief executive of Veolia Environmental Services, said: “At a time when Defra is increasing its funding for waste PFIs we are delighted we can demonstrate our commitment to deliver sustainable integrated waste management. Our approach combines innovative collection and recycling services for residents and efficient and reliable waste treatment and disposal which are a pre-requisite for municipal authorities.”

He added: “Our integrated approach means we can deliver both the expansion of recycling services and waste infrastructure investment West Berkshire needs to meet its recycling and landfill diversion targets.”

Build

Under the PFI deal, Veolia will build and operate a materials recycling facility, waste transfer station, composting facility and household waste recycling centres, which will be supported by £28.7 million in credits under the governments’s Private Finance Initiative (see letsrecycle.com story) .

West Berkshire council has already identified a brownfield site in Padworth as the preferred site for the location of these facilities, for which it is to submit a compulsory purchase order in the near future.

Residual waste will meanwhile be sent to landfill or an energy from waste plant outside of West Berkshire, which will take up to 25,000 tonnes of waste a year – equivalent to around a third of waste generated in the district. However, Veolia is still to decide which plant this will be.

The contract will also involve the roll out kerbside collections of plastic bottles, cardboard and green waste in addition to the paper, glass, cans and textiles presently collected.

It is expected the changes will help boost recycling rates in West Berkshire from 22% in 2006/07 to 49% over the long-term.

West Berkshire executive councillor of West Berkshire council, Geoff Findlay said: “This contract will meet the waste needs of West Berkshire for the next 25 years. It will provide a recycling rate of at least 49%, the diversion of 79% of household waste away from landfill and enhanced kerbside collection of recyclables in line with requests from local residents.”

He added: “Full implementation will see the council ranked as one of the best in the country for the sustainable treatment of its household waste.”

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