Renewi plc has recently announced that it is in discussions with Dumfries and Galloway Council and other stakeholders to initiate the termination of its loss-making private finance initiative PFI operating contract.

The D&G PFI project is unable to address the needs of the Waste (Scotland) Regulations which set demanding new requirements regarding landfill diversion and recycling from 2021. Renewi has been working with D&G Council and other stakeholders for a number of years to determine how this 15-year old PFI waste project and the related operating contract could be amended to meet the requirements.

Accordingly, Renewi has initiated a termination of the operating contract, which is held between Renewi UK Services Ltd and Shanks Dumfries & Galloway Limited. It will enable D&G Council and other stakeholders to explore new ways to comply with the obligations of the Waste (Scotland) Regulations.

The proposed termination of the operating contract is expected to become effective in the next financial year. The remainder of Renewi’s Municipal Division is unaffected by this termination. As previously announced, the Division is performing largely in line with revised expectations for the year, delivering operational progress against its recovery plans.