The high court in the UK has given permission to Essex county council to terminate the 25-year contract for waste treatment facility with UBB Waste ltd as of June 13, 2019.

The authority has entered the contract on May 31, 2012, with UBB for design, construction, financing, commissioning, operation, and maintenance of a mechanical-biological waste treatment plant in Basildon.

The facility completed construction on November 14, 2014, and passed the 'Readiness tests', after which the plant was required to pass the ‘Acceptance Tests’ before commencing the operations. The facility failed to pass the ‘Acceptance Tests’ even after extended Longstop Date. The authority argued the failure was the result of UBB's design and construction. Joint venture company UBB consisting of Urbaser Limited and Balfour Beatty Investments Limited denied the allegations stating upon the true construction of the agreement, the facility was capable of passing the Acceptance Tests and that authority was wrong not to recognize the Quasi-Acceptance Tests as evidence of the same.

In a verdict, the Judge concluded that UBB failed to provide efficient design for bio-halls as well as biodegradable municipal waste reduction and the facility could not pass the Acceptance Tests with such design. The court also awarded compensation of GBP 9.04 million (US$ 11.16 million) to the end of February 2019 and continuing losses thereafter at GBP 99,563 (US$ 122,917) per month. In a compensation event, UBB is also entitled to GBP 745,234 (US$ 920,040) in relation to the asbestos matter.