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Waste PFI deal faces further delays

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A major local authority waste PFI scheme has been delayed further and the deal is not expected to be signed until the New Year - nearly six years after it was first proposed.

In July, LGC’s sister publication Material Recycling Weekly reported that Wakefield MDC was planning to finalise its £750m waste PFI contract for recycling, autoclave and anaerobic digestion facilities this autumn, five years after a preferred bidder was chosen.

The deal was originally expected to be completed in 2010 after VT Group was chosen as preferred bidder for the contract in 2007. But after the onset of the economic slump, the company was bought by Babcock in 2010.

Waste firm Shanks was then chosen to partner Babcock to complete the PFI deal in February this year. At that time, the council said was further delayed because of the changes to the preferred bidder.

In June, MRW revealed the council had sought support from the Green Investment Bank to bring the project to close.

This week, Andrew Balchin, corporate director for communities, said: “We will start the process of handing over waste management to the Shanks/Babcock consortium early in the New Year following the signing of the waste PFI contract.”

 

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