Public Private Partnership
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