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<ref name="moth">In original data site was listed as operational this has been changed to Mothballed.</ref> || 73 || [[EfW]] || [[RDF]] from Avonmouth MBT fed this plant, technology failed, currently mothballed
|-
| Basingstoke || [[Chineham]] ([[Project Integra]]) || [[PPP]] || Operational || 99 || EfW || [[Veolia]] site for [[Hampshire County Council]]
|-
| Birmingham || [[Landor Street]] || [[PPP]] || Operational || 165 || MBT || Example
|-
| Birmingham || [[Tyseley]] || [[PPP]] || Operational || 361 || [[EfW]] || [[Veolia]] site towards its end of life
|-
|-
| Bolton|| [[Raikes Lane]] || [[PFI]] || Operational || 86 || [[EfW]] || Example
|-
|-
| Buckinghamshire || [[Greatmoor]] || [[PPP]] || Operational || 300 || [[EfW]] || [[FCC]] site
| 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
|-
|-
| 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
| 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
|-
|-
| Cornwall || [[St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site
| Cornwall || [[Cornwall ERC|St. Dennis]] || [[PFI]] || Operational || 240 || [[EfW]] || [[Suez]] site ([[Cornwall ERC]]) part of an integrated contract with [[ Cornwall Council | Cornwall ]] to 2039
|-
|-
| Coventry || [[Coventry EFW]] || [[PPP]] || Operational || 245 || [[EfW]] || Example
| [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty
|-
|-
| Cumbria || [[Hespin Wood]] || [[PPP]] || Mothballed<ref name="moth" />|| 66 || [[MBT]] || Example
| [[ELWA]] 2 || [[Jenkins Lane]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[East London Waste Disposal Authority | ELWA]], recently reported financial difficulty
|- 
| Cumbria || [[Barrow-in-Furness]]|| [[PPP]] || Mothballed || 50 || [[MBT]] || Example
|-
|-
| Derbyshire || [[Sinfin Lane]] || [[PPP]] || In Construction || 190 || [[EfW]] || Recent termination of contract after delays in commissioning
| East Sussex || [[North Quay ERF (Newhaven)|Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]
|-
|-
| Dudley || [[Lister Road]] || [[PPP]] || Operational || 93 || [[EfW]] || Example
| 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>.
|-
|-
| [[ELWA]] 1 || [[Frog Island]] || [[PFI]] || Operational || 180 || [[MBT]] || [[Renewi]] site servicing [[ELWA]], recently reported financial difficulty
| 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
|-
|-
| [[ELWA]] 2 || [[Jenkins Lane]] || [[PFI]] || Operational || 180 || [[MBT]] || As per [[ELWA]] 1
| 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>
|-
|-
| East Sussex || [[Newhaven]] || [[PFI]] || Operational || 234 || [[EfW]] || Servicing [[East Sussex County Council]] and [[Brighton and Hove City Council]]
| 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
|-
|-
| Essex || [[Courtauld Road]] || [[PFI]] || Operational<ref name="op" /> || 417 || [[MBT]] || Servicing [[Essex County Council]] and [[Southend-on-Sea Council]], reported operational difficulties
| 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
|-
|-
| Exeter || [[Marsh Barton]] || [[PPP]] || Operational || 60 || [[EfW]] || [[Viridor]] site
| 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
|-
|-
| Ferrybridge || [[Multifuel 1]] (FM1) || [[PPP]] || Operational || 400 || [[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
|-
|-
| Gloucestershire || [[Javelin Park]] || [[PPP]] || Operational<ref name="op" /> || 190 || [[EfW]] || Example
| Kirklees || [[Vine Street EfW (Kirkless EfW)|Vine Street]] || [[PFI]] || Operational || 127 || [[EfW]] || [[Suez]] operated site primarily for [[Kirklees Metropolitan Council | Kirklees]]
|-
|-
| Greater Manchester || [[Longley Lane]] || [[PFI]] || Mothballed<ref name="moth" /> || 110 || [[MBT]] || Example
| 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
|-
|-
| Greater Manchester || [[Runcorn Phase 1]] || [[PFI]] || Operational || 325 || [[EfW]] || Example
| 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
|-
|-
| Greater Manchester || [[N. Manchester]] || [[PFI]] || Mothballed<ref name="moth" /> || 65 || [[MBT]] || Example
| 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]]
|-
|-
| Greater Manchester || [[Oldham]] || [[PFI]] || Mothballed<ref name="moth" /> || 99|| [[MBT]] || Example
| 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]]
|-
|-
| Greater Manchester || [[Salford]] || [[PFI]] || Mothballed<ref name="moth" /> || 73 || [[MBT]] || 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]]
|-
|-
| Greater Manchester || [[Stockport]] || [[PFI]] || Mothballed<ref name="moth" /> || 92 || [[MBT]] || 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
|-
|-
| Hartlepool || [[Tees Valley Lines 1 &2]] || [[PPP]] || Operational || 345 || [[EfW]] || 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
|-
|-
| Herefordshire || [[Hartlebury]] || [[PPP]] || In Construction || 200 || [[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]]
|-
|-
| Hertfordshire || [[Hoddesdon]] || [[PPP]] || Post Close || 320 || [[EfW]] || 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]]
|-
|-
| Isle of Wight || [[Isle of Wight]] [[Gasification]] || [[PPP]] ||In Construction || 40 || [[EfW]] || 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
|-
|-
| Isle of Wight || [[Isle of Wight WM Project]] || [[PPP]] ||Operational   ||80 || [[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"
|-
|-
| Kent || [[Allington]] || [[PPP]] || Operational || 427 || [[EfW]] || [[FCC]] site servicing Kent County Council
! Location !! Project Site !! Classification !! Status !! Capacity (ktpa) !! Plant Type !! Comment
|-
|-
| Kirklees || [[Vine Street]] || [[PFI]] || Operational || 127 || [[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>
|-
|-
| Colnbrook || [[Lakeside]] || [[PPP]] || Operational || 436 || [[EfW]] || [[Viridor]] and [[Grundon]] Joint Venture which will require moving to accommodate Heathrow 3rd runway
| 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>
|-
|}
| Leeds || [[Cross Green]] || [[PFI]] || Operational || 165 || [[EfW]] || [[Veolia]] site
 
|-
==PFI Projects in Wales==
| Leicstershire  || [[Mowmacre Hill]] || [[PFI]] || Operational || 165 || [[EfW]] || Example
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.
|-
 
| Leicstershire  || [[Cotesbach]] || [[PPP]] || Operational || 50 || [[MBT]] || Example
{| class="wikitable"
|-
| Lincolnshire || [[North Hykeham]] || [[PPP]] || Operational || 154 || [[EfW]] || Example
|-
| L.B. Southwark ||[[Old Kent Road]]  || [[PFI]] || Operational || 100 || [[MBT]] || Example
|-
| Merseyside || [[Wilton]] || [[PPP]] || Operational<ref name="op" /> || 440 || [[EfW]] || [[Suez]] site in Teeside, waste hauled by rail from Merseyside transfer station
|-
| Milton Keynes || [[Wolverton]] || [[PPP]] || In Construction]] || 80 || [[EfW]] || Example
|-
| NE Lincolnshire || [[Stallingborough]] || [[PPP]] ||Operational  ||53  || [[EfW]] || Example
|-
| Newcastle || [[Byker/Ellington]] || [[PPP]] || Operational || 187 || [MBT]] || Example
|-
| 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]] || Bought by [[Veolia]] out of administration, serviced [[North Somerset Council]] but based in Avonmouth Docks, [[RDF]] export focused
|-
| North Yorkshire || [[Allerton]] || [[PPP]] || Operational<ref name="op" /> || 320 || [[EfW]] || Example
|-
| Nottingham || [[Eastcroft 3rd Line]] || [[PPP]] || Consented || 140 || [[EfW]] || Example
|-
| Nottingham || [[Eastcroft]] || [[PPP]] || Operational || 158 || [[EfW]] || Example
|-
| Oxfordshire || [[Ardley]] || [[PPP]] || Operational || 300 || [[EfW]] || [[Viridor]] site
|-
| Peterborough || [[Fourth Drove, Fengate]] || [[PPP]] || Operational || 85 || [[EfW]] || [[Viridor]] site
|-
| Portsmouth || [[Portsmouth Project Integra]] || [[PPP]] || Operational || 198 || [[EfW]] || [[Veolia]] site delivered primarily for [[Hampshire County Council]]
|-
| Rugby || [[Malpass Farm]] || [[PPP]] || Operational || 200 || [[MBT]] || Example
|-
| Sheffield || [[Bernard Road]] || [[PPP]] || Operational || 207 || [[EfW]] || Was part of wider [[Veolia]] contract, now [[EfW]] plant has been separated out
|-
| Shropshire || [[Battlefield Enterprise Park]] || [[PFI]] || Operational || 90 || [[EfW]] || Example
|-
| S.E. London || [[SELCHP]] || [[PPP]] || Operational || 431 || [[EfW]] || [[Veolia]] site
|-
| S. London || [[Beddington Lane]]|| [[PPP]] || Operational<ref name="op" /> ||300 || [[EfW]] || [[Viridor]] site
|-
| South Tyne & Wear || [[Teeside Lines 4&5]] || [[PFI]] || Operational || 256 || [[EfW]] || Example
|-
| South Devon || [[Devonport]] || [[PFI]] || Operational || 245 || [[EfW]] || Am [[MVV]] project
|-
| South Yorkshire || [[Bolton Road, Manvers]] || [[PFI]] ||Operational || 286 || [[MBT]] || Example
|-
| Southampton || [[Marchwood Project Integra]] || [[PPP]] || Operational || 198 || [[EfW]] || [[Veolia]] site
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
|-
| Example || Example || Example || Example || Example || Example || Example
! Location !! Project/Site !! Classification !! Status !! Capacity (ktpa) !! Plant Type !! Comment
|-
|-
| Example || Example || Example || Example || Example || Example || 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>
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|-
| Example || Example || Example || Example || Example || Example || Example
|}
|}
==References==
==References==
<references />
<references />

Latest revision as of 03:11, 25 April 2022

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[1]. 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.[2]

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[3]. 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.[4]

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 and several schemes which had their funding agreed later had it removed after DEFRA assessed [5] 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 [6] 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):

Location Project/Site Classification Status Capacity [7] (ktpa) Plant Type Comment
Bolton Raikes Lane PFI Operational 86 EfW Viridor Laing consortium GMCA contract terminated 2017, now Suez from June 2019 for 7 years
Cambridgeshire Waterbeach PFI Operational[8] 200 MBT Amey Cespa site with variable performance reported, planning being pursued for new EfW on the site
Cornwall St. Dennis PFI Operational 240 EfW Suez site (Cornwall ERC) part of an integrated contract with Cornwall to 2039
ELWA 1 Frog Island PFI Operational 180 MBT Renewi site servicing ELWA, recently reported financial difficulty
ELWA 2 Jenkins Lane PFI Operational 180 MBT Renewi site servicing ELWA, recently reported financial difficulty
East Sussex Newhaven PFI Operational 234 EfW Servicing East Sussex County Council and Brighton and Hove City Council
Essex Courtauld Road PFI Operational[8] 417 MBT Developed and operated by partners Urbaser Balfour Beatty servicing Essex County Council and Southend, ceased deliveries in June 2020[9]and to be demolished[10].
Greater Manchester Longley Lane PFI Operational 110 MBT Viridor Laing consortium PFI contract with GMCA terminated 2017, now Suez from June 2019 for 7 years
Greater Manchester Runcorn Phase 1 PFI Operational 325 EfW Viridor bought out Laing in Nov 2018 and continues to operate under contract with GMCA to 2035[11]
Greater Manchester N. Manchester PFI Operational 65 MBT Viridor Laing consortium PFI contract with GMCA terminated 2017, now Suez from June 2019 for 7 years
Greater Manchester Oldham PFI Operational 99 MBT Viridor Laing consortium PFI contract with GMCA terminated 2017, now Suez from June 2019 for 7 years
Greater Manchester Salford PFI Operational 73 MBT Viridor Laing consortium PFI contract with GMCA terminated 2017, now Suez from June 2019 for 7 years
Greater Manchester Stockport PFI Operational 92 MBT Viridor Laing consortium PFI contract with GMCA terminated 2017, now Suez from June 2019 for 7 years
Kirklees Vine Street PFI Operational 127 EfW Suez operated site primarily for Kirklees
Leeds Cross Green PFI Operational 165 EfW Site developed by Veolia on behalf of Leeds City Council under a 25 year contract to 2037
Leicstershire Mowmacre Hill PFI Operational 120 MBT[12] Integrated contract delivered by Biffa for Leicester City Council for 25 years from 2002
L.B. Southwark Old Kent Road PFI Operational 100 MBT[13] Suez integrated facility servicing Southwark
Shropshire Battlefield Enterprise Park PFI Operational 90 EfW Site developed by Veolia as part of a 25 year contract with Shropshire
South Tyne & Wear Teeside Lines 4&5 PFI Operational 256 EfW Suez facility[14] serving Stockton, Middlesbrough, Redcar & Cleveland and Northumberland and the South Tyne & Wear Partnership
South Devon Devonport PFI Operational 245 EfW MVV Umwelt facility serving South West Devon Waste Partnership under a 25 year contract
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
Staffordshire Four Ashes PFI Operational 325 EfW Veolia operated site for Staffordshire County Council, 25 year contract from July 2010, with inputs also from Sandwell, Warkwickshire and Walsall
Suffolk Great Blakenham PFI[15] Operational 269 EfW Suez facility delivered primarily for Suffolk under 25 year contract, with later deal for cross-border tonnage from Norfolk
Surrey Charlton Lane Eco Park PFI In Construction 60 EfW Suez integrated AD and Gasification facility for Surrey has had delays in commissioning the latter, now forecast Q1 2020
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.

Location Project Site Classification Status Capacity (ktpa) Plant Type Comment
Dumfries Eco Deco Plant PFI Terminated 65 MBT Contract ended in Sept 2018. Asset transferred to Dumfries and Galloway Council [16]
Dundee 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.[17]

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.

Location Project/Site Classification Status Capacity (ktpa) Plant Type Comment
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.[18]

References

  1. ↑ [wikipedia:Private finance initiative]
  2. ↑ [1]
  3. ↑ [wikipedia:Private finance initiative]
  4. ↑ [2]
  5. ↑ DEFRA Waste Infrastructure Delivery Programme
  6. ↑ DEFRA Residual Waste Treatment Infrastructure Project List dated 31st December 2016 but noted as last updated 29th March 2019 (edited with press updates)
  7. ↑ 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
  8. ↑ 8.0 8.1 In original data site was listed as In Construction this has been changed to Operational.
  9. ↑ https://www.letsrecycle.com/news/latest-news/judge-rules-essex-tovi-eco-park-dispute
  10. ↑ https://www.letsrecycle.com/news/essexs-tovi-eco-park-waste-facility-to-be-demolished/
  11. ↑ As part of the restructuring of the PFI contract, with option to extend
  12. ↑ The technology utilized under the contract is the only one in the UK and is known as a 'Ball Mill'
  13. ↑ Integrated site includes a Gasification facility which is in extended commissioning
  14. ↑ This site comprises a number of facilities in the same general area
  15. ↑ Discussions within Suffolk around re-financing reported in 2018 (Letsrecycle article November 2018
  16. ↑ https://www.bbc.co.uk/news/uk-scotland-south-scotland-48132540
  17. ↑ https://www2.gov.scot/resource/doc/1069/0005230.pdf
  18. ↑ https://www.letsrecycle.com/news/latest-news/wrexham-announces-new-phase-of-waste-pfi-deal/
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