PFI funding allocated to South London Waste Partnership

(27/03/2009)

The Department for the Environment and Rural Affairs (Defra) has announved that the UK central government has awarded the South London Waste Partnership (Croydon, Kingston, Merton and Sutton councils) £112.9 million of Private Finance Initiative (PFI) funding.

This is the first waste PFI money allocated to London since 2002. The successful bid brings state-of-the-art waste treatment within the partnership boroughs a step closer to being realised.

The PFI funding will contribute 50% towards the cost of building a new treatment facility. This will enable the South London Waste Partnership to treat over 200,000 tonnes of waste per year that would otherwise have been sent to landfill.

The success of the partnership’s bid for funding was partly due to an increased commitment by the four boroughs to minimise the waste they generate in the first place and to improve re-use and recycling rates to over 50%. Such a reduction would cut down on the climate changing gas methane released to the atmosphere. The reduction of waste sent to landfill will also reduce the impact of the landfill tax and potential fines imposed by central government on councils which exceed their landfill allocations.

Following the award of the PFI funding, the tendering process for developing a waste management facility is set to begin in the spring of this year with the contract awarded in spring 2011. It is expected the new facilities would become operational in 2014/15.

The four boroughs generate half a million tonnes of rubbish every year. Recycling rates are improving, but over 70% currently goes to landfill. Most rubbish can be re-used, recycled or composted in state-of-the-art waste management facilities and the remainder could be used to produce heat or energy. Modern facilities are needed to deal with our rubbish in this way and reduce the quantity sent to landfill.

Chair of the South London Waste Partnership Councillor Derek Osbourne said: “The funding will provide a huge opportunity for us to work for a cleaner, greener and more sustainable south London. We are committed to dramatically reducing the waste we send to landfill and contributing significantly to minimising climate changing gas emissions in the atmosphere. We are a strong and successful partnership working together to deliver efficient services that provide value for money. Now we are going to have to take responsibility for dealing with our own waste by managing it locally.”

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