Public Private Partnership

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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 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.

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

  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
  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
  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. ↑ https://www.viridor.co.uk/energy/energy-recovery-facilities/cardiff-erf/
  14. ↑ https://www.wtienergy.com/plant-locations/development/parc-adfer-flintshire-north-wales
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