PFI agreements like this one provide an incentive for local authorities and industry to work together to achieve our goals for cutting waste, reducing its environmental impact, and making better use and reuse of the waste we create
Joan Ruddock
And, a partnership of three councils in South Yorkshire – Barnsley, Doncaster and Rotherham – is now preparing a business case to seek PFI funding for their own new waste infrastructure.
North Yorkshire
The York and North Yorkshire Partnership's residual waste project is expected to be worth around £150 million and last around 25 years (see letsrecycle.com story).
Assessments carried out concerning its waste strategy revealed mechanical biological treatment as a preferred option for York, with energy recovery being slightly more preferable for North Yorkshire.
The councils have not stated that two separate facilities will be built and when the procurement process begins, are likely to remain open to all options for treating the region's waste arisings.
This is expected to reach 558,000 tonnes by 2009/10, and the partnership will also want potential contractors to help it cut biodegradable waste to landfill by half of the 1995 level by 2013, as set down in its strategy.
Both councils hit their recycling/composting targets in 2005/06 with York achieving 24% – its target was 18% – while North Yorkshire's rate was 30% – its target was 21%. But they will also want to improve on this while tackling residual waste.
Awarding the PFI credits, environment minister Joan Ruddock said: “Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by the North Yorkshire county council and York City council partnership.
She added: “PFI agreements like this one provide an incentive for local authorities and industry to work together to achieve our goals for cutting waste, reducing its environmental impact, and making better use and reuse of the waste we create.”
South Yorkshire
In the south of the county, Barnsley, Rotherham and Doncaster have submitted an Expression of Interest to Defra – the first stage in securing PFI credits – and have now been invited to draw up a business case for the project. This is expected to be handed to Defra in October and if it gains government approval, the credits will be awarded.
Barnsley, which is leading the PFI bid, said in its waste strategy that energy recovery was its preferred option for the facility but assistant director for waste services Susan Upton said the council was open to any solutions put forward from the waste industry and the decision would be made by all three councils.
Ms Upton explained: “We need to reach high recycling rates and comply with LATS and we will be looking to the market to come forward with solutions.”
The partnership is hoping to begin the procurement process in the first quarter of 2008 and a recent soft market test saw 40 different companies expressing interest. The facility, which is expected to be up-and-running by 2014/15, will likely process around 230,000 tonnes of the region's annual 450,000 tonnes of waste arisings.
The contract will run from 2015 to 2039 and an interim contract for treatment and disposal services, from 2008 to 2015 is presently out to tender. The partnership is aiming to hit a recycling/composting rate of 50% by 2010/12 and the roll-out of alternate weekly collections is expected to lift the present rates which are in the mid-twenties.
• The Shropshire Waste Partnership – made up of five of councils in the county – yesterday named Veolia Environmental Services as its preferred bidder for a new PFI-backed waste contract (see letsrecycle.com story).
Register for free to comment