Public Private Partnership: Difference between revisions

Latest revision as of 06:27, 3 April 2021

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

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.

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

The table below is an extract from DEFRA data ^[1] 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) :

Location	Project/Site	Classification	Status	Capacity ^[2] (ktpa)	Plant Type	Comment
Avonmouth	New Earth Solutions	PPP	Uncertain ^[3]	372	MBT	Bought out of administration by PandaGreen,currently services West of England, contracts lost to Suez and Viridor from March 2020
Avonmouth	New Earth Energy	PPP	Mothballed^[4]	73	EfW	RDF from Avonmouth MBT fed this plant, technology failed, currently mothballed
Basingstoke	Chineham	PPP	Operational	99	EfW	Veolia site for Hampshire County Council and partners under Project Integra
Birmingham	Landor Street	PPP	Mothballed^[4]	165	MBT	Suez facility producing SRF moved to their site in Rugby, to supply Cemex cement kiln in Rugby
Birmingham	Tyseley	PPP	Operational	361	EfW	Veolia operated site, towards its end of life, contract to 2021(?), tender for new operator thereafter(?)
Buckinghamshire	Greatmoor	PPP	Operational	300	EfW	FCC site primarily servicing Buckinghamshire under a 30 year residual waste contract from 2012
Coventry	Coventry EFW	PPP^[5]	Operational	245	EfW	Operated by CSWDC taking waste from Coventry and Solihull.
Cumbria	Hespin Wood	PPP	Mothballed^[4]	66	MBT	Renewi 25 year contract from 2009 for Cumbria reported as under financial difficulty ^[6]
Cumbria	Barrow-in-Furness	PPP	Mothballed	50	MBT	Renewi 25 year contract from 2009 for Cumbria reported as under financial difficulty
Derbyshire	Sinfin Lane	PPP	Uncertain ^[7]	190	EfW	Termination of contract reported Aug. '19 between Derby City Council and Derbyshire County Council and Renewi
Dudley	Lister Road	PPP	Operational	93	EfW	Operated by MES Environmental
Exeter	Marsh Barton	PPP	Operational	60	EfW	Developed and operated by Viridor in partnership with Devon County Council with a focus on Exeter and the immediate surrounds
Ferrybridge	Multifuel 1 (FM1)	PPP	Operational	400	EfW	Joint Venture between Wheelabrator and SSE, includes Cumbria via their contract with Renewi for RDF from their MBT facilities
Gloucestershire	Javelin Park	PPP	Operational^[8]	190	EfW	Delivery by partners Urbaser Balfour Beatty primarily serving Gloucestershire
Hartlepool	Tees Valley Lines 1 &2	PPP	Operational	345	EfW	Operated by Suez receiving waste from several local authorities in the North-East, primarily for Northumberland
Herefordshire	Hartlebury	PPP	Operational^[8]	200	EfW	Severn Waste Services operated plant, owned by FCC and Urbaser, 25 year contract for Herefordshire and Worcestershire to 2023
Hertfordshire	Hoddesdon	PPP	Terminated ^[9]	320	EfW	Long term contract with Hertfordshire terminated
Isle of Wight	Isle of Wight Gasification	PPP	In Construction	40	EfW	Development between Amey and Isle of Wight Council, delays in commissioning reported to early 2020
Isle of Wight	Isle of Wight WM Project	PPP	Operational	80	MBT	Development between Amey and Isle of Wight Council
Kent	Allington	PPP	Operational	427	EfW	FCC site servicing primarily Kent County Council
Colnbrook	Lakeside	PPP	Operational	436	EfW	Viridor and Grundon Joint Venture which will require moving to accommodate Heathrow 3rd runway
Leicstershire	Cotesbach	PPP	Operational	50	MBT	Operational plant by New Earth Solutions bought out of administration by PandaGreen,currently services Leicestershire County Council
Lincolnshire	North Hykeham	PPP	Operational	154	EfW	FCC facility primarily for Lincolnshire County Council under 25 year contract
Merseyside	Wilton	PPP	Operational^[8]	440	EfW	Suez site in Teeside, waste hauled by rail from Merseyside transfer station under contract with MWDA
Milton Keynes	Wolverton	PPP	In Construction ^[10]	80	EfW	Integrated facility delivered by Amey primarily for Milton Keynes Council for 15 years from 2013
NE Lincolnshire	Stallingborough	PPP	Operational	53	EfW	Newlincs facility for North East Lincolnshire under 25 year contract
Newcastle	Byker/Ellington	PPP	Operational	187	MBT	Suez facility serving primarily Newcastle
North London	Edmonton	PPP	Operational	512	EfW	NLWA site, currently going through planning process to be replaced as at end of life
North Somerset	BOOMECO Avonmouth	PPP	Operational	50	MBT	Boomecho bought by Veolia out of administration, serviced North Somerset Council but based in Avonmouth Docks, RDF export focused
North Yorkshire	Allerton	PPP	Operational^[8]	320	EfW	Amey^[11] facility servicing North Yorkshire and York, moved into its 25 year operating phase in March '18
Nottingham	Eastcroft 3rd Line	PPP	Consented	140	EfW	FCC facility delivering shared capacity between FCC, Nottingham City Council and Nottinghamshire
Nottingham	Eastcroft	PPP	Operational	158	EfW	FCC facility delivering shared capacity between FCC, Nottingham City Council and Nottinghamshire
Oxfordshire	Ardley	PPP	Operational	300	EfW	Viridor facility servicing primarily Oxfordshire under a 25 year contract from March 2011
Peterborough	Fourth Drove, Fengate	PPP	Operational	85	EfW	Viridor facility serving Peterborough City Council under a 30 year contract
Portsmouth	Portsmouth Project Integra	PPP	Operational	198	EfW	Veolia site for Hampshire County Council and partners under Project Integra
Rugby	Malpass Farm	PPP	Operational	200	MBT	Suez facility producing SRF, to supply Cemex cement kiln in Rugby, also receiving tonnage previously designated to Birmingham facility
Sheffield	Bernard Road	PPP	Operational	207	EfW	Was part of wider 35 year contract with Veolia to 2036, now EfW contract only with termination of wider contract in 2017
S.E. London	SELCHP	PPP	Operational	431	EfW	Veolia site taking waste from Lewisham, Greenwich, Westminster and Bromley
S. London	Beddington Lane	PPP	Operational^[8]	300	EfW	Viridor facility primarily serving Croydon, Kingston, Merton, Richmond and Sutton
Southampton	Marchwood Project Integra	PPP	Operational	198	EfW	Veolia site for Hampshire County Council and partners under Project Integra
Stoke on Trent	Campbell Road	PPP	Operational	174	EfW	Operated by MES Environmental
Swindon	Chaney Manor	PPP	Operational	48	MBT^[12]	Swindon Commercial Services facility for Swindon
West London	Severnside Avonmouth	PPP	Operational	350	EfW	Suez site in Avonmouth, supplied by train from a transfer in West London for WLWA, plus some local waste including West of England
West Sussex	Brookhurst Wood	PPP	In Construction	327	MBT	Biffa facility delivered for West Sussex
Western Riverside	Belvedere	PPP	Operational	688	EfW	Cory site in Bexley, supplied by river from two transfer stations for WRWA, plus some local tonnage for Bexely
Whites Pit, Poole	Canford	PPP	Operational	50	MBT	Operational plant by New Earth Solutions bought out of administration by PandaGreen,currently primarily services Bournemouth
Wiltshire	Northacre Farm	PPP	Operational	60	MBT	Hills site at Westbury servicing Wiltshire Council
Wolverhampton	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 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

The following table lists the Residual Waste PPP projects in Scotland.

Location	Project Site	Classification	Status	Capacity (ktpa)	Plant Type	Comment
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.

PPP Projects in Wales

The following table lists the Residual Waste PPP Projects in Wales.

Location	Project/Site	Classification	Status	Capacity (ktpa)	Plant Type	Comment
Cardiff	Trident Park	PPP	Operational	350	EfW	Viridor site for the Prosiect Gwyrrd (Project Green) Partnership which includes Cardiff County Council, Monmouthshire County Council, Caerphilly County Borough Council, Vale of Glamorgan Council and Newport City Council. ^[13]
Flintshire	Parc Adfer	PPP	Operational	200	EfW	Wheelabrator site for the five local authorities that make up the North Wales Residual Waste Treatment Project (NWRWTP) - Conwy County Borough Council, Denbighshire County Council, Flintshire County Council, Gwynedd County Council and the Isle of Anglesey County Council. ^[14]

References

↑ DEFRA Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)
↑ The capacity has been reproduced from the DEFRA data, but has not been verified in this table, and in some cases is known not to be up to date
↑ Future of site uncertain, still operational to contract handover, but site up for sale as of Jan 2020
↑ ^4.0 ^4.1 ^4.2 In original data site was listed as operational this has been changed to Mothballed.
↑ A new PFI agreed in 2009 to replace the original plant and to include Warwickshire has not progressed to date
↑ Letsrecycle article re: Carlisle EfW and context of current PPP contract
↑ After issues with the initial commissioning of the MBT part of the project, there were then extended delays in commissioning the EfW portion of contract - plant delivery/final commissioning is presently unclear
↑ ^8.0 ^8.1 ^8.2 ^8.3 ^8.4 In original data site was listed as In Construction this has been changed to Operational.
↑ The project was called in at a very late stage by the secretary of state and refused planning consent after strong local opposition, leading to the termination of the long term residual waste contract between Hertfordshire and Veolia reported in Aug 2019
↑ Reported in mid 2018 as operational (Letsrecycle article dated July 2018), the Gasification facility had extended commissioning issues
↑ Amey is partnered with Equitix and Pensions Infrastructure Platform (Letsrecycle article dated March 2018)
↑ The technology is better described as mechanical sorting or a Dirty MRF with no biological treatment as part of the process
↑ https://www.viridor.co.uk/energy/energy-recovery-facilities/cardiff-erf/
↑ https://www.wtienergy.com/plant-locations/development/parc-adfer-flintshire-north-wales

[1] DEFRA Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)

[2] The capacity has been reproduced from the DEFRA data, but has not been verified in this table, and in some cases is known not to be up to date

[3] Future of site uncertain, still operational to contract handover, but site up for sale as of Jan 2020

[moth-4] 4.0 ^4.1 ^4.2 In original data site was listed as operational this has been changed to Mothballed.

[5] A new PFI agreed in 2009 to replace the original plant and to include Warwickshire has not progressed to date

[6] Letsrecycle article re: Carlisle EfW and context of current PPP contract

[7] After issues with the initial commissioning of the MBT part of the project, there were then extended delays in commissioning the EfW portion of contract - plant delivery/final commissioning is presently unclear

[op-8] 8.0 ^8.1 ^8.2 ^8.3 ^8.4 In original data site was listed as In Construction this has been changed to Operational.

[9] The project was called in at a very late stage by the secretary of state and refused planning consent after strong local opposition, leading to the termination of the long term residual waste contract between Hertfordshire and Veolia reported in Aug 2019

[10] Reported in mid 2018 as operational (Letsrecycle article dated July 2018), the Gasification facility had extended commissioning issues

[11] Amey is partnered with Equitix and Pensions Infrastructure Platform (Letsrecycle article dated March 2018)

[12] The technology is better described as mechanical sorting or a Dirty MRF with no biological treatment as part of the process

[13] ttps://www.viridor.co.uk/energy/energy-recovery-facilities/cardiff-erf/

[14] ttps://www.wtienergy.com/plant-locations/development/parc-adfer-flintshire-north-wales

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@@ Line 1: / Line 1: @@
 [[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==
 In broad terms, a [[Public Private Partnership]] ([[PPP]]) is a partnership between local government and private companies to provide services to the community.