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Record grant for flagship north London waste management project

Mar 25, 2010

The North London Waste Authority has today been awarded a record breaking Government grant to help it boost waste management and recycling in North London.

The £258.4 million award under the Private Finance Initiative is estimated to be worth £481 million in cash terms over time. The flagship procurement project will be one of the most valuable in Western Europe, handling around 3% of the national municipal waste tonnage by 2045.

The grant will help pay for £500-600 million investment in a range of new waste management facilities which could include:

  • Materials Recovery Facilities to sort recyclable materials;
  • Anaerobic Digestion plant to generate green energy from organic waste;
  • Treatment facilities to reduce and treat waste which cannot be recycled;
  • A facility to treat Solid Recovered Fuel produced from treated residual waste to generate renewable energy; and
  • New and refurbished Household Waste & Recycling Centres to improve local services and boost recycling rates.

Speaking today Councillor Clyde Loakes, Chair of the North London Waste Authority, said:

"This is a massive boost for our ambitious plans to halt waste growth, recycle half of the waste we do create and put North London at the forefront of sustainable waste management solutions. As the second largest waste disposal authority in the country we have a responsibility to help meet national and international targets. But today is also a massive boost to the local area and economy in terms of investment in the local economy, the prospect of ‘green economy’ jobs, renewable energy opportunities and significant help in keeping down local council tax bills”.

The aim is that by 2020 north London will be meeting tough regional, national and European waste targets and will be achieving:

  • a 50 per cent recycling and composting rate (current level at 28%); and
  • a reduction in the amount of biodegradable material sent for disposal to landfill from 36% to 15%.

The plans for the area are estimated to save the NLWA and subsequently the seven North London boroughs, a significant amount over 30 years in comparison to continuing to dispose of waste through incineration and landfill.

Tim Judson, NLWA’s Director of Procurement, said:

“The Authority has organised a very deliverable market opportunity and we can now move forward with inviting proposals. Business leaders should be taking a keen interest in the construction work associated with the new facilities, the waste management services we are seeking, and the 500,000 tonnes of metals, plastics, glass and other recycling/ compost materials that will be produced in North London every year.

"There is also a very attractive renewable energy opportunity: 50-60 megawatts of renewable energy can be provided from the Solid Recovered Fuel that is available and this can significantly reduce business dependence on expensive fossil fuel. The Authority has organised its procurement so that waste services and the use of fuel is separated and the energy opportunity can be considered by companies who do not run a waste management business”.

- ENDS -

Notes to Editors

Today’s announcement relates to a Government PFI award to the North London Waste Authority (NLWA). A full list of previous Government waste PFI project awards is at:  http://www.defra.gov.uk/environment/waste/localauth/funding/pfi/projects.htm

The NLWA was established in 1986 and is the statutory waste disposal authority for Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest. Those seven Boroughs are the waste collection authorities.

The Authority manages the disposal of approximately 900,000 tonnes of municipal waste per annum. This is expected to grow to more than 1 million tonnes in the future partially as a result of housing growth.

Currently waste disposal services are delivered through a contract with LondonWaste Limited – a company which is wholly owned by the Authority. Currently more than a quarter of North London’s waste is recycled with the majority of the rest going to the Energy from Waste plant at Edmonton and landfill sites in the Home Counties.

The eight North London authorities (NLWA and seven Boroughs) have agreed a joint municipal waste management strategy which includes an ambition for 50% of North London’s waste to be recycled and a significant reduction of waste that goes to landfill.

Details of the Authority’s plans to secure a new future contract and a ‘reference project’ on new facilities are set out in an Outline Business Case

Following today’s announcement NLWA will be publishing contract notices to prospective bidders in the Official Journal of the European Union. There will be separate contracts for waste services and fuel use.

For further information please contact Keith Harper, Communications Manager, North London Waste Authority on 020 8489 4360 or keith.harper@nlwa.gov.uk.