And, in a bid to encourage procurement processes from other council partnerships, it has also guaranteed that it will fund as much as 25% of the net costs that any other Welsh councils face in using new treatment facilities for residual waste and source-separated food waste.
We need new collection services and new infrastructure to use waste in the best possible way and stop dumping in landfill
Jane Davidson, Welsh environment minister
Speaking on Tuesday (January 27), Welsh environment minister Jane Davidson announced that the WAG would offer up to £7.8 million each year towards the operational costs, in the shape of gate fees, of any facility built by the 'Prosiect Gwyrdd' ('Project Green') partnership.
The partnership aims to jointly procure a residual waste treatment facility or facilities for its five member councils – Cardiff, Caerphilly, Newport, the Vale of Glamorgan and Monmouthshire.
Ms Davidson said: “We need new collection services and new infrastructure to use waste in the best possible way and stop dumping in landfill.
“The extra Assembly Government funding opens the way for Prosiect Gwyrdd to move forwards so we can make the most of our resources by producing much-needed energy,” she added.
Last year, Viridor Waste Management unveiled plans to build a £150 million energy-to-waste facility in Cardiff with a view to securing the Prosiect Gwyrdd residual waste treatment contract as and when it was put out to tender (see letsrecycle.com story).
Cap
Any plans to develop residual waste treatment facilities in Wales are bound by the WAG's cap of 30% on the amount of waste that can be sent to energy-from-waste plants by 2024/25.
At the same time, the WAG has targeted a 40% goal for Wales by 2009/10 and 70% by 2024/25. The country achieved a 38% recycling and composting rate in the period June to September 2008.
The Assembly Government's involvement also emphasises its interest in tackling food waste, which was made clear last year when it urged councils to spend the money made available to them under the Sustainable Waste Management Grant system on separate collection and treatment of the waste stream (see letsrecycle.com story).
Projects
Commenting on the WAG's commitment to support other projects, Ms Davidson said: “We will be working with local authority consortia across Wales to develop similar facilities in other areas to deal with residual waste and these important projects will also attract a similar level of support to ensure they proceed quickly and help us to meet future EU waste diversion targets.”
The funding commitment was secured following lobbying by the Welsh Local Government Association (WLGA), which has said that it now expects five further partnerships to begin procuring treatment contracts.
Due to the relatively small size of some local authorities in Wales, it expects fewer than six EfW facilities to be built, with some using plants nearby.
In total, the WLGA has said that £4 million of funding will be available in 2009/10, rising to £74.3 million in 2016/17, though 75% of this will be met by local authorities.
Cake
The WLGA's environment and housing spokesperson, councillor Aled Roberts, said: “Whilst welcoming the Assembly Government's commitment to work in partnership on this agenda, we also realise that local government still has to find the largest share of the cake.
“This is going to be challenging, but one we know we can tackle through the strong partnership procurements we have in place,” he added.
The money will be made available to councils through the WAG's Sustainable Waste Management Grant, and the WLGA said in a statement: “Waste projects being taken forward will be staggered to ensure that targets can be met and to ensure that the market can cope.
“Subsequently, funding will awarded at various times as waste consortia enter different stages of their planning and have successful bids agreed by the Welsh Assembly Government,” it added.
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