Council ready to accept private finance deal for waste contract

Wakefield Council and the Shanks/Babcock consortium are expected to sign the contract for the long-awaited private finance initiative (PFI) scheme in the New Year, with work starting shortly after.

Members of the city council’s cabinet committee will meet next week to decide whether to give authority to its chief executive to award the contract officially.

The PFI project, which has Government financial support to the value of £33m, will see a new waste treatment and recycling facility at South Kirkby and other household waste recycling centres in the district.

It aims to increase recycling and reduce the amount that the district sends to landfill.

A report to members says: “The council will continue to act as Waste Collection Authority (WCA) and will deliver all municipal waste it collects within the district to the PFI contractor.”

The PFI contractor will then treat and dispose of the waste, a report to members of the council’s cabinet committee says.

The project has been hit by a number of obstacles in the past few years including the economic downturn. Council chief executive Joanne Roney said: “I am very pleased that this has continued progressing as we anticipated in October and I look forward to being able to finally authorise the award of the contract in early 2012.

“This may have taken longer than first planned but the council and the consortium are committed to ensure everything is in place.

“Now we are reaching the final stage I am equally determined to see the district benefit from the significant investment this will bring and the best value for money it offers.”

Despite many waste PFI projects across the country losing Government funding, Wakefield Council has one of the only schemes that still have the full support and financial backing from the Government.

It is anticipated that more than 70 new jobs will be created when the new facilities are operational and about 200 jobs will be created during the construction period.

Wakefield Council’s cabinet member for environment and communities, Councillor Maureen Cummings, said: “We are now at the final stage of this contract process and I am very pleased that we remain on track for early 2012.

“This is a very exciting time for the district and will revolutionise our waste management.

“The new hi-tech waste treatment plant will combine a mixture of modern technologies for dealing with waste together with improving waste recycling centres across the district.

“It will enable us to recycle much more and reduce the amount of waste we send to landfill. This is about delivering significant environmental benefits and getting the best possible value for money.”

The waste PFI project has overcome many obstacles over the past few years not least of which has been the severe economic downturn but also a number of changes to the make-up of the council’s chosen preferred bidder consortium.

The report, which is due to go before Wakefield’s Cabinet next Tuesday, outlines the changes which will eventually help residents to increase the amount of waste they recycle and enable the council to meet its obligations to reduce the amount of waste it sends to landfill.

Members of the cabinet will also be asked to recommend that a £5m capital contribution is made towards the provision of the new waste treatment facilities, which are earmarked for a site at South Kirkby.

The authority says its funding of this capital contribution will result in more than £12m of savings on the PFI contract once it gets up and running.