Viridor disappointed after Cheshire project dropped

Viridor, the preferred bidder for Cheshires long-term residual waste treatment contract, has expressed its disappointment after councils in Cheshire officially agreed to abandon the 850 million deal.

The decision was made at separate meetings of Cheshire East council on March 5 and Cheshire West and Chester council on February 23.

Under the proposed 25-year contract, Viridor had planned to build a mechanical biological treatment (MBT) facility at Lostock Works, in Northwich, to treat 180,000 tonnes of the councils residual waste every year. The facility had been granted planning permission in November 2010 (see letsrecycle.com story).

But, theproject hit problems in October 2010 when 160 million of PFI funding was withdrawn by Defra (see letsrecycle.com story) . And, in January 2012 Cheshire West and Chester announced that it would be recommending that the scheme be dropped (see letsrecycle.com story) .

Symon Grasby, Viridors development manager, said: Viridor was selected as provisional preferred bidder for the Cheshire Waste Contract because the proposed MBT facility at the former INEOS site at Lostock Works met with the partnerships needs and would prevent reliance on landfill throughout Cheshire. We will now be taking time to review the implications of the decision with a view to deciding a course of action.

Decision

Commenting on the decision, Councillor Peter Mason, cabinet member with responsibility for procurement at Cheshire East council, said: It is with regret that we have to take this decision. However, Cheshire East believes it has no other option but to formally abandon the waste PFI project. Both ourselves and Cheshire West and Chester have spent considerable time, money and effort in attempting to minimise the impact that the loss of Government PFI credits would have on the project.

To date the councils have invested 2.8 million in the project. The meetings saw both councils agree to write the expenditure off.

Cllr Mason added: This council is now in a position of having to write off the 1.6m spent on the scheme and we are still in the position of having to find a sustainable method of disposing of Cheshires household waste from April 2014.