Cheshire signs £1bn PFI contracts

25 October 2006
 
Cheshire County Council is looking to sign private-finance initiative agreements worth more than £1bn as part of a bid to reorganise its household waste-management contracts by early 2008.
The scheme would be the biggest-single procurement exercise ever carried out in the authority’s history.
The council’s existing major waste contracts expire in early February 2008, and the authority has taken this opportunity to change how its waste is managed in future. Cheshire claims work on procuring two contracts for waste-disposal services to landfill, and operation of household waste-recycling centres are already in hand, and would not discuss them further.
But, later this month, the procurement of a waste-treatment plant through a private-finance initiative contract will begin, and a fourth contract for composting of kitchen and garden waste is likely to follow soon after.
Current responsibility for managing waste is shared between the six district councils in Cheshire as waste collection authorities, and Cheshire County Council. The authorities work together as the Cheshire Waste Partnership, and have done so since 1999.
Waste-treatment facilities are expected to include two mechanical biological treatment plants to remove additional recyclable material from the remaining waste, and to part-compost the waste to reduce its volume and weight.
This would produce a refuse-derived fuel to generate power from a small energy-from-waste plant. Any remaining residues would go to landfill.
Andrew Needham, executive member for the environment, said: ‘Everyone is focusing positively on the way forward. We have got to get our plans right for the long-term good of Cheshire.’
The county intends to shortlist bidders early in 2008 with a view to closing a PFI deal by the end of that year.

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