SITA agrees PFI contract variation with Cornwall Council
SITA UK (subsidiary of SUEZ ENVIRONNEMENT), and Cornwall Council agreed a 30-year Private Finance Initiative (PFI) contract variation to manage residual household waste and recycling on 11 April 2013.
The Net Present Value of cost for the Authority on a comparable basis has only increased by 1.6% from £426m to £433m, despite the significant additional costs caused by repeated challenges to the planning permission.
The 30-year integrated waste management contract between SITA Cornwall and Cornwall Council was originally signed in October 2006. However, following delays in getting planning permission to build an energy-from-waste facility a contract variation was required
The contract is to manage the treatment and disposal of all of Cornwall Council's household waste. Key to the contract is the design, build, finance and operation of an energy-from-waste facility in St Dennis with a capacity of up to 240,000 tonnes per year, which will generate electricity for the equivalent of around 21,000 homes.
This facility, which has planning permission and an Environmental Permit, is expected to be operational in 2016. The county's residual waste is currently taken to Connon Bridge landfill site, near Liskeard.Funding for SITA Cornwall will be provided by The European Investment Bank (EIB), Bank of Tokyo-Mitsubishi, Mizuho Corporate Bank and Helaba. SITA UK, Itochu and Lloyds will provide equity. Due to the delays in obtaining planning permission, SITA UK went back out to the market to identify and negotiate with potential investors.
Source: SITA
