Information on Leicestershire

Leicestershire Councty Council Highways, Transportation & Waste Management

20 January 2009 Eight firms in running for waste contract

Eight companies are in the running to build a major waste treatment scheme in Leicestershire.

Leicestershire County Council today unveiled its longlist of bidders, interested in developing a £137 million facility to treat up to 180,000 tonnes of waste per year by 2040.

Nick Rushton, the council’s deputy leader, said: “We’re delighted to have a list of eight experienced waste treatment companies, interested in developing our facility.

“We already divert 162,000 tonnes of materials away from landfill, through recycling and composting.

“We want to find the best process to treat waste, but we’ve made no decision on the technology and no decision on a site.”

The bidders are (in alphabetical order):

• Biffa

• Covanta

• Lafarge/Interserve

• Shanks

• Sita UK Ltd

• United Utilities/John Laing

• Veolia

• WRG Ltd

These companies will now be asked to produce initial proposals, detailing how they plan to deal with residual waste in Leicestershire from 2015 onwards.

Last October, the Government announced it would provide £86.6 million towards the Leicestershire scheme.

Background:

1) At the moment, 210,000 tonnes of Leicestershire’s municipal waste is dumped at landfill sites each year. Each tonne of waste incurs landfill tax from the Government and this cost could increase significantly each year, if landfilling continues at the current rate.

2) The County and District Councils are working to minimise waste and to boost recycling and composting to 58 per cent – but this will still leave some waste that will have to be treated or landfilled.

3) The selection of companies for the long list is based on their past history and performance.

4) No decision has been taken on the technology which will be used to treat the waste. A variety of technologies will be considered that could include: autoclave systems; energy from waste; gasification; mechanical biological treatment; and pyrolysis. More information can be found at www.leics.gov.uk/longterm_waste_procurement

5) No decision has been made on a site. The Government’s environment department, DEFRA, advised the County Council to make different sites available. The County Council will be offering its current Whetstone waste site and a site at Bardon’s Interlink Business Park, or companies can suggest their own site.

6) The Private Finance Initiative is a Government scheme that allows local authorities to buy a service from a private sector company, rather than borrow money to build and operate its own facilities. The Government PFI credits are a financial contribution towards the capital cost of the construction of the facilities. They are not a loan and are not repaid by the local authority. The local authority will meet the remaining capital cost, plus the operational cost, through payments over the life of the contract.

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