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NLWA advances procurement plans

Dec 01, 2009
The North London Waste Authority (NLWA) is pleased to announce that it has successfully completed the acquisition of LondonWaste Ltd from SITA UK.

At the same time the NLWA’s 50% share in LondonWaste’s Polkacrest clinical waste business has been transferred to SITA UK.

These steps are part of a procurement strategy that is designed to allow investment in new municipal waste management facilities that, in turn, will help deliver the recycling-led waste strategy agreed by the Authority and the seven boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest. The strategy is also designed to save at least £200 million in waste disposal costs over 25 years when compared to the alternative landfilling of waste.

Cllr. Clyde Loakes, Chair of the NLWA, said:

"The NLWA is seeking a 21st century solution to managing waste in the area and this development is a significant step forward. In particular we are looking to LondonWaste to continue to provide a service as we secure a new contract and the investment in new facilities essential to meeting our ambitious plans for substantially reducing the amount of waste that goes to landfill. And in the longer term with the right facilities and services in place we will significantly reduce north London's carbon footprint - in an affordable way."

North London is seeking to recycle 50% of municipal waste collected from households and local businesses, to recover value from waste that cannot be recycled or composted, and to drastically reduce the amount of waste that goes to landfill sites outside London.

To deliver these ambitions the Authority has set out plans for letting a major new waste services contract and associated investment in new recycling, composting, anaerobic digestion, and mechanical and biological treatment facilities. At the same time the Authority is proposing to let contracts for the use of Solid Recovered Fuel which is one of the products of these waste services facilities.

To help pay for the new investment the NLWA is applying for £317 million of Private Finance Initiatives credits from Government in an Outline Business Case that has been refreshed in the light of the new sites solution and submitted to Department for Environment, Food and Rural Affairs.  

The Authority is expecting to borrow £92.5 million in 2010 to fund the LondonWaste Limited and Ecopark site acquisition. It is envisaged that a future contractor of waste services will acquire LondonWaste at the start of a new contract and that sale will generate a receipt to offset against the borrowing as well as providing a good long-term future for current employees involved in delivering current waste disposal services. 

 

- Ends -

Notes to Editors

LondonWaste Ltd was established in 1994 as a 50/50 joint venture between the NLWA and SITA UK. LondonWaste currently provides the municipal waste disposal service for the municipal waste generated in seven north London boroughs. The service includes running the existing energy from waste facility at the Edmonton ‘Ecopark’ site and an enclosed composting facility, also located onsite.

The NLWA applied for government funding in May 2009 under the Private Finance Initiative to help finance the costs of building the modern waste treatment facilities now needed for north London. In the light of the acquisition of LondonWaste Ltd, the NLWA has refreshed its Outline Business Case (OBC) application for financial support. The refreshed OBC will be available on the Authority’s website in January 2010 - www.nlwa.gov.uk/procurement.

Contact:

For press enquiries please contact Barbara Herridge, Policy and Development Manager, on 0208 489 5654 or barbara.herridge@nlwa.gov.uk.