Public Private Partnership: Difference between revisions

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[[Category:Legislation & Policy]] [[Category:Economics]]
[[Category:Legislation & Policy]] [[Category:Economics]]
In broad terms, a [[Public Private Partnership]] ([[PPP]]) is a partnership between local government and private companies to provide services to the community.
In the context of the waste and resources market in the UK, the [[PPP]] approach has been used by Government and the procuring [[Waste Disposal Authorities]] to stimulate investment in waste infrastructure, and underpin the diversion of [[BMW]] waste from [[Landfill]]. This became more prevalent when the Government's support/subsidies through the alternative [[Private Finance Initiative]] ([[PFI]]) came to an end.
==Introduction==
==Introduction==
In broad terms, [[PPP]] is a partnership between local government and private companies to provide services to the community.


In the context of the waste and resources market in the UK, the [[PPP]] approach has been used by Government and the procuring [[Waste Disposal Authorities]] to stimulate investment in waste infrastructure, and underpin the diversion of [[BMW]] waste from [[Landfill]]. This was especially prevalent when the Government's support/subsidies through the alternative [[PFI]] approach came to an end. As a result of not being able to obtain [[PFI]] funding support, a [[PPP]] process has been followed by many [[Waste Disposal Authorities]], or consortium of them, where they have a need to deliver their waste disposal needs and a lack of funding to be able to deliver large infrastructure. The [[PPP]] approach in this context has used a similar contract format to the [[PFI]] approach, with the private companies using the tonnage commitment of the [[Waste Disposal Authorities]] over a long contract period to underwrite/secure the funding to build the necessary infrastructure.
In broad terms, a [[Public Private Partnership]] ([[PPP]]) is a partnership between local government and private companies to provide services to the community.


Some [[PPP]] contracts are currently under review by [[Waste Disposal Authorities]] but more so for movement out of [[PFI]] after consideration of the cost benefit of continuing with the contract, and several have already been removed (i.e. Lancashire) or have had closed with major restructure (i.e. Sheffield and Greater Manchester).
In the context of the waste and resources market in the UK, the [[PPP]] approach has been used by Government and the procuring [[Waste Disposal Authorities]] to stimulate investment in waste infrastructure, and underpin the diversion of [[BMW]] waste from [[Landfill]]. This became more prevalent when the Government's support/subsidies through the alternative [[Private Finance Initiative]] ([[PFI]]) came to an end.
 
A [[PPP]] approach has been followed by [[Waste Disposal Authorities]], or consortium of them, where they have a need to deliver their waste disposal needs and a lack of funding to be able to deliver large infrastructure. The [[PPP]] approach in this context has used a similar contract format to the [[PFI]] approach, with the private companies using the tonnage commitment of the [[Waste Disposal Authorities]] over a long contract period to underwrite/secure the funding to build the necessary infrastructure.
 
Some [[PPP]] contracts are currently under review by [[Waste Disposal Authorities]] but more so for movement out of [[PFI]] after consideration of the cost benefit of continuing with the contract (especially when considering the cost of debt and debt finance in the [[PFI]]), and several have already been removed (i.e. Lancashire) or have had closed with major restructure (i.e. Sheffield and Greater Manchester).


==PPP Projects in England==
==PPP Projects in England==


The table below is an extract from DEFRA data <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)]</ref>  summarizing the residual waste projects in England that are/were [[PPP]] projects. Additional commentary/notes have also been included (with [[PFI]] projects separately listed in the [[PFI]] page) :
The table below is an extract from [[DEFRA]] data <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)]</ref>  summarizing the residual waste projects in England that are/were [[PPP]] projects. Additional commentary/notes have also been included (with [[PFI]] projects separately listed in the [[PFI]] page) :


{| class="wikitable"
{| class="wikitable"
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| Wolverhampton || [[Wolverhampton EfW|Crown Street EFW]] || [[PPP]] || Operational || 108 || [[EfW]] || Operated by [[MES Environmental]]
| Wolverhampton || [[Wolverhampton EfW|Crown Street EFW]] || [[PPP]] || Operational || 108 || [[EfW]] || Operated by [[MES Environmental]]
|}
|}
A [[PPP]] contract was signed between [[Viridor]] and [[Somerset Waste Partnership]] in 2006 as part of the sale of the local authority owned company ([[LAWDC]]) known as [[Wyvern Waste Services Ltd]]. This [[PPP]] allowed for the addition of services, and was utilized to contract [[Residual Waste]] tonnage to [[Viridor]]'s [[Avonmouth RRC]] facility, which will commence in 2020.
A [[PPP]] contract was signed between [[Viridor]] and [[Somerset Waste Partnership]] in 2006 as part of the sale of the local authority owned company ([[LAWDC]]) known as [[Wyvern Waste Services Limited]]. This [[PPP]] allowed for the addition of services, and was utilized to contract [[Residual Waste]] tonnage to [[Viridor]]'s [[Avonmouth RRC]] facility, which will commence in 2020.


==PPP Projects in Scotland==
==PPP Projects in Scotland==
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|-
|-
| Argyll || Argyll and Bute Waste Management Facility  || PPP || Operational || Unknown|| MBT || Compost like Output producing facility. PPP covers the mainland areas of Argyll and Bute except Helensburgh and Lomond.
| Argyll || Argyll and Bute Waste Management Facility  || PPP || Operational || Unknown|| MBT || Compost like Output producing facility. PPP covers the mainland areas of Argyll and Bute except Helensburgh and Lomond.
|-
| Glasgow || Glasgow Renewable Energy Recovery Facility  || PPP || Operational || 150|| ACT || [[Viridor]] plant for [[Glasgow City Council]]. Capacity relates to [[RDF]] entering the ACT facility only.
|}
|}