Wrexham re-enters negotiations with HLC Environmental

HLC was selected in July 1998 as preferred bidder for Wrexham's PFI waste management contract based on its central proposal for a Wrexham Resource Recovery Centre. But, following the company's planning application for the facility being &#39ca;lled in' by the Welsh Assembly for an undetermined period of time, the council suspended negotiations with the Portuguese firm in April 2002.

Last week the council met to reconsider its position and decided to reopen discussions with HLC, provided the company meets certain conditions. These include identifying a negotiating team, providing an up to date financial model and demonstrating its banking partners.

Another condition is that HLC must also secure an option on a new site for the plant after the original site was sold to a third party in July 2003. The company is in talks with another site owner over a possible location in the North Wales town.

Mr Carvalho, president of HLC Group said: “We are delighted that the council will be inviting us back to the negotiating table. HLC has invested huge resources in this project to provide Wrexham with an innovative system to recycle and compost the borough's waste. We are confident that we will meet the conditions shortly and deliver this project within the agreed timescales by bringing to bear our experienced PFI team.”

After delays in the planning stages, HLC now hopes the 20 million resource recovery centre will become operational in 2006. The 160,000 tonne annual capacity plant will include a materials recovery facility (MRF) for kerbside collection recyclables and mixed waste and composting for the sorted bio-degradable waste.

HLC plans to use thermal treatment for the residual waste but removed the incineration element in the planning application after local opposition was raised. The company's application now includes a Compact Power plant which uses pyrolysis and gasification to produce usable heat and electricity.

HLC already runs a similar recovery centre in Neath Port Talbot, South Wales, and has also been short-listed for a waste management contract in the Wirral.