Private Finance Initiative: Difference between revisions

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[[Category:Legislation & Policy]] [[Category:Economics]]
[[Category:Legislation & Policy]] [[Category:Economics]]
In its desire to stimulate investment in waste infrastructure, and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/subsidized a range of treatment technologies on a number of sites that were procured by [[Waste Disposal Authorities]] needing this infrastructure through a dedicated long term Private Finance Initiative (PFI). This arrangement has now ceased, several schemes which were to have been funded had their funding removed after [[DEFRA]] assessed <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Waste Infrastructure Delivery Programme]</ref> that the [[BMW]] targets could be met with the infrastructure funded to that date, and several are currently being considered by [[Waste Disposal Authorities]] for movement out of PFI after consideration of the cost benefit of continuing with the contract.
A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>


The table below is an extract from DEFRA data <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)]</ref>  summarizing the residual waste projects that are/were [[PFI]] and [[PPP]] projects:
==Overview of PFI==
 
A [[Private Finance Initiative]] ([[PFI]]) is a way of financing public sector projects through the private sector. PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects. Under a private finance initiative, the private company handles the up-front costs instead of the public sector<ref>[wikipedia:Private finance initiative]</ref>. The project is then leased to the public and the government authority makes annual payments to the private company. These contracts are typically given to construction firms and can last as long as 30 years or more.<ref> [https://www.investopedia.com/terms/p/privatefinanceinitiative.asp] </ref>
 
In its desire to stimulate investment in waste infrastructure and underpin the diversion of [[BMW]] waste from [[Landfill]], the Government supported/[[Subsidy|subsidized]] a range of treatment technologies on a number of sites that were procured by [[Waste Disposal Authorities]] needing this infrastructure through a dedicated long term Private Finance Initiative (PFI). This arrangement has now ceased and several schemes which had their funding agreed later had it removed after [[DEFRA]] assessed <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Waste Infrastructure Delivery Programme]</ref> that the [[BMW]] targets could be met with the infrastructure funded to date.
 
Fast forward circa two decades later and some of these PFI projects are currently being considered by [[Waste Disposal Authorities]] for movement out of the PFI arrangement after consideration of the cost benefit of continuing with the contract. Indeed several have now removed themselves form the PFI model  (i.e. Lancashire) or have had closed with major restructure (i.e. Sheffield and Greater Manchester).
 
==PFI Projects in England==
 
The table below is an extract from DEFRA data <ref>[https://data.gov.uk/dataset/b99f22a0-e716-44bf-bff2-a12da2562e4f/waste-infrastructure-delivery-programme-widp-residual-waste-treatment-infrastructure-project-list-ipl [[DEFRA]] Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)]</ref>  summarizing the residual waste projects that are/were [[PFI]] projects within England. Additional commentary/notes have also been added (an alternative [[PPP]] process and associated projects are listed on the [[PPP]] page):


{| class="wikitable"
{| class="wikitable"
|-
|-
! Location !! Project/Site !! Classification !! Status !! Capacity <ref> the capacity has been reproduced from the DEFRA data, but has not been verified in this table, an din some cases is known to be incorrect</ref> (ktpa) !! Plant Type !! Comment
! Location !! Project/Site !! Classification !! Status !! Capacity <ref> 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</ref> (ktpa) !! Plant Type !! Comment
|-
|-
| Avonmouth || New Earth Solutions || [[PPP]] || Operational || 372 || [[MBT]] || Bought out of administration by [[Beauparc]],currently services [[West of England]], contracts lost to [[Suez]] and [[Viridor]] from 2022
|-
|-
| Avonmouth || New Earth Energy || [[PPP]] || Mothballed || 73 || [[EfW]] || [[RDF]] from Avonmouth MBT fed this plant, technology failed, currently mothballed
| Bolton|| [[Bolton TRF|Raikes Lane]] || [[PFI]] || Operational || 86 || [[EfW]] || [[Viridor]] [[Laing]] consortium [[Greater Manchester Combined Authority | GMCA]] contract terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| Basingstoke || [[Chineham]] ([[Project Integra]]) || [[PPP]] || Operational || 99 || EfW || [[Veolia]] site for [[Hampshire County Council]]
| Cambridgeshire || [[Waterbeach]] || [[PFI]] || Operational<ref name="op">In original data site was listed as In Construction this has been changed to Operational.</ref> || 200 || [[MBT]] || [[Amey Cespa]] site with variable performance reported, planning being pursued for new [[EfW]] on the site
|-
|-
| Birmingham || [[Landor Street]] || [[PPP]] || Operational || 165 || MBT || Example
| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall ERC]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039
|-
|-
| Birmingham || [[Tyseley]] || [[PPP]] || Operational || 361 || [[EfW]] || [[Veolia]] site towards its end of life
| [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty
|-
|-
| Bolton|| [[Raikes Lane]] || [[PFI]] || Operational || 86 || [[EfW]] || Example
| [[ELWA]] 2 || [[Jenkins Lane]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty
|-
|-
| Buckinghamshire || [[Greatmoor]] || [[PPP]] || Operational || 300 || [[EfW]] || [[FCC]] site
| East Sussex || [[North Quay ERF (Newhaven)|Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]
|-
|-
| Cambridgeshire || [[Waterbeach]] || [[PFI]] || Operational || 200 || [[MBT]] || [[Amey Cespa]] site with variable performance reported, planning being pursued for new [[EfW]] on the site
| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Developed and operated by partners [[Urbaser Balfour Beatty]] servicing [[Essex County Council]] and [[Southend-on-Sea Borough Council | Southend]], ceased deliveries in June 2020<ref>https://www.letsrecycle.com/news/latest-news/judge-rules-essex-tovi-eco-park-dispute</ref>and to be demolished<ref>https://www.letsrecycle.com/news/essexs-tovi-eco-park-waste-facility-to-be-demolished/</ref>.
|-
|-
| Cornwall || [[St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site
| Greater Manchester || [[Longley Lane]] || [[PFI]] || Operational || 110 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| Coventry || [[Coventry EFW]] || [[PPP]] || Operational || 245 || [[EfW]] || Example
| Greater Manchester || [[Runcorn EfW|Runcorn Phase 1]] || [[PFI]] || Operational || 325 || [[EfW]] || [[Viridor]] bought out [[Laing]] in Nov 2018 and continues to operate under contract with [[Greater Manchester Combined Authority | GMCA]] to 2035<ref>As part of the restructuring of the PFI contract, with option to extend </ref>
|-
|-
| Cumbria || [[Hespin Wood]] || [[PPP]] || Mothballed|| 66 || [[MBT]] || Example
| Greater Manchester || [[N. Manchester]] || [[PFI]] || Operational || 65 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| Cumbria || [[Barrow-in-Furness]]|| [[PPP]] || Mothballed || 50 || [[MBT]] || Example
| Greater Manchester || [[Oldham]] || [[PFI]] || Operational || 99|| [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| Derbyshire || [[Sinfin Lane]] || [[PPP]] || In Construction || 190 || [[EfW]] || Recent termination of contract after delays in commissioning
| Greater Manchester || [[Salford]] || [[PFI]] || Operational || 73 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| Dudley || [[Lister Road]] || [[PPP]] || Operational || 93 || [[EfW]] || Example
| Greater Manchester || [[Stockport]] || [[PFI]] || Operational || 92 || [[MBT]] || [[Viridor]] [[Laing]] consortium [[PFI]] contract with [[Greater Manchester Combined Authority | GMCA]] terminated 2017, now [[Suez]] from June 2019 for 7 years
|-
|-
| [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[ELWA]], recently reported financial difficulty
| Kirklees || [[Vine Street EfW (Kirkless EfW)|Vine Street]] || [[PFI]] || Operational || 127 || [[EfW]] || [[Suez]] operated site primarily for [[Kirklees Metropolitan Council | Kirklees]]
|-
|-
| [[ELWA]] 2 || [[Jenkins Lane]] || [[PFI]] || Operational || 180 || [[MBT]] || As per [[ELWA]] 1
| Leeds || [[Leeds Recycling & ERF (Cross Green ERF)|Cross Green]] || [[PFI]] || Operational || 165 || [[EfW]] || Site developed by [[Veolia]] on behalf of [[Leeds City Council]] under a 25 year contract to 2037
|-
|-
| East Sussex || [[Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]
| Leicstershire  || [[Mowmacre Hill]] || [[PFI]] || Operational || 120 || [[MBT]]<ref> The technology utilized under the contract is the only one in the UK and is known as a 'Ball Mill'</ref>  || Integrated contract delivered by [[Biffa]] for [[Leicester City Council]] for 25 years from 2002
|-
|-
| Essex || [[Courtauld Road]] || [[PFI]] || Operational || 417 || [[MBT]] || Servicing [[Essex County Council]] and [[Southend-on-Sea Council]], reported operational difficulties
| L.B. Southwark ||[[Old Kent Road]] || [[PFI]] || Operational || 100 || [[MBT]]<ref> Integrated site includes a [[Gasification]] facility which is in extended commissioning </ref>|| [[Suez]] integrated facility servicing [[Southwark London Borough Council | Southwark]]
|-
|-
| Exeter || [[Marsh Barton]] || [[PPP]] || Operational || 60 || [[EfW]] || [[Viridor]] site
| Shropshire || [[Battlefield EfW|Battlefield Enterprise Park]] || [[PFI]] || Operational || 90 || [[EfW]] || Site developed by [[Veolia]] as part of a 25 year contract with [[Shropshire Council | Shropshire]]
|-
|-
| Ferrybridge || [[Multifuel 1]] (FM1) || [[PPP]] || Operational || 400 || [[EfW]] || Example
| South Tyne & Wear || [[Teeside EfW - lines 1-5 (Teeside & NEERC), Billingham. line 3 | Teeside Lines 4&5]] || [[PFI]] || Operational || 256 || [[EfW]] || [[Suez]] facility<ref> This site comprises a number of facilities in the same general area</ref> serving [[Stockton-on-Tees Borough Council | Stockton]], [[Middlesbrough Council | Middlesbrough]], [[Redcar and Cleveland Borough Council | Redcar & Cleveland]] and [[Northumberland Council |Northumberland]] and the [[South Tyne & Wear Partnership]]
|-
|-
| Gloucestershire || [[Javelin Park]] || [[PPP]] || Operational || 190 || [[EfW]] || Example
| South Devon || [[North Yard EfW (Devonport EfW CHP Facility)|Devonport]] || [[PFI]] || Operational || 245 || [[EfW]] || [[MVV Umwelt]] facility serving [[South West Devon Waste Partnership]] under a 25 year contract
|-
|-
| Greater Manchester || [[Longley Lane]] || [[PFI]] || Mothballed || 110 || [[MBT]] || Example
| South Yorkshire || [[Bolton Road, Manvers]] || [[PFI]] ||Operational || 286 || [[MBT]] || [[Renewi]] partnership with [[SSE]] delivering integrated [[MBT]] and [[AD]] facility to [[Barnsley, Doncaster and Rotherham Waste Partnership]] to 2040
|-
|-
| Greater Manchester || [[Runcorn Phase 1]] || [[PFI]] || Operational || 325 || [[EfW]] || Example
| Staffordshire || [[Four Ashes EfW (Staffordshire ERF) (W2R)| Four Ashes]] || [[PFI]] || Operational || 325 || [[EfW]] || [[Veolia]] operated site for [[Staffordshire County Council]], 25 year contract from July 2010, with inputs also from [[Sandwell Metropolitan Borough Council | Sandwell]], [[Warwickshire County Council | Warkwickshire]] and [[Walsall Metropolitan Borough Council | Walsall]]
|-
|-
| Greater Manchester || [[N. Manchester]] || [[PFI]] || Mothballed || 65 || [[MBT]] || Example
| Suffolk || [[Great Blakenham EfW|Great Blakenham]] || [[PFI]]<ref> Discussions within Suffolk around re-financing reported in 2018 [https://www.letsrecycle.com/news/latest-news/suffolk-refinancing-great-blakenham-efw/ (Letsrecycle article November 2018]</ref> || Operational || 269 || [[EfW]] || [[Suez]] facility delivered primarily for [[Suffolk County Council | Suffolk]] under 25 year contract, with later deal for cross-border tonnage from [[Norfolk County Council | Norfolk]]
|-
|-
| Greater Manchester || [[Oldham]] || [[PFI]] || Mothballed || 99|| [[MBT]] || Example
| Surrey || [[Charlton Lane Eco Park (ACT)|Charlton Lane Eco Park]] || [[PFI]] || In Construction || 60 || [[EfW]] || [[Suez]] integrated [[AD]] and [[Gasification]] facility for [[Surrey County Council | Surrey]] has had delays in commissioning the latter, now forecast Q1 2020
|-
|-
| Greater Manchester || [[Salford]] || [[PFI]] || Mothballed || 73 || [[MBT]] || Example
| Wakefield || [[South Kirby]] || [[PFI]] || Operational || 146 || [[MBT]] || [[Renewi]] integrated contract for [[Wakefield City Council]]
|}
 
==PFI Projects in Scotland==
 
The following table lists the PFI projects that are or were in place in Scotland dealing with the countries [[Residual Waste]].
 
{| class="wikitable"
|-
|-
| Greater Manchester || [[Stockport]] || [[PFI]] || Mothballed || 92 || [[MBT]] || Example
! Location !! Project Site !! Classification !! Status !! Capacity (ktpa) !! Plant Type !! Comment
|-
|-
| Hartlepool || [[Tees Valley Lines 1 &2]] || [[PPP]] || Operational || 345 || [[EfW]] || Example
| Dumfries || Eco Deco Plant || [[PFI]] || Terminated || 65 || [[MBT]] || Contract ended in Sept 2018. Asset transferred to Dumfries and Galloway Council <ref>https://www.bbc.co.uk/news/uk-scotland-south-scotland-48132540</ref>
|-
|-
| Herefordshire || [[Hartlebury]] || [[PPP]] || In Construction || 200 || [[EfW]] || Example
| Dundee || [[Baldovie|Baldovie EfW ]] || [[PFI]] || Operational || 120 || [[EfW]] || MVV Site for [[Dundee City Council]] and [[Angus Council]]. Contract covers the operation of the existing [[EfW]] facility not the new [[Dundee EfW CHP Facility]] being built next door.<ref>https://www2.gov.scot/resource/doc/1069/0005230.pdf</ref>
|}
 
==PFI Projects in Wales==
There is currently only one [[Residual Waste]] [[PFI]] in Wales and that is in Wrexham; the detials of which are shown in the Table below.
 
{| class="wikitable"
|-
|-
| Hertfordshire || [[Hoddesdon]] || [[PPP]] || Post Close || 320 || [[EfW]] || Example
! Location !! Project/Site !! Classification !! Status !! Capacity (ktpa) !! Plant Type !! Comment
|-
|-
| Isle of Wight || [[Isle of Wight [[Gasification]]]] || [[PPP]] ||In Construction || 40 || [[EfW]] || Example
| Wrexham || Wrexham Eco Recycling Park || [[PFI]] || Operational || 75 || MBT || Produces RDF which is sent to [[Ferrybridge Multifuel 1 (FM1)]]. Contract with [[Wrexham County Borough Council]].<ref>https://www.letsrecycle.com/news/latest-news/wrexham-announces-new-phase-of-waste-pfi-deal/</ref>
|-
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==References==
<references />