News / MegaProject 98: North London Waste PFI project cancelled

MegaProject 98: North London Waste PFI project cancelled

🕔 October 8, 2013
UK politicians urge reconsideration of PPP projects

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The North London Waste Authority (NLWA) has decided to end its procurement for long-term waste management services through a private finance initiative.

The North London Waste Authority (NLWA), made up of seven north London boroughs (Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest), now believes that a less expensive solution to waste management for north London taxpayers can be found in a time when council finances are under enormous pressure.

This change in approach is due to changing circumstances, including recent developments in the planning policy situation in north London. Two key planning policy documents were adopted in May and July of this year which fundamentally changed the Authority's ability to secure planning permission for a long-term energy recovery facility for north London's non-recyclable waste at the Edmonton EcoPark site.An alternative strategy will be based on continued use of NLWA's existing Edmonton facility given that the existing facility can remain operational until at least 2025 with some relatively modest capital investment.Councillor Clyde Loakes, Chair, NLWA, said:
"These are tough times and we have to do everything we can to protect services. That means ensuring every decision we make offers real value for money. This decision will save north London money in the short to medium term, and could save us a total of up to £900 million (note 2) over almost 30 years."
"We are very grateful to bidders for their hard work and commitment to the procurement process - this decision in no way reflects on the quality of the bids received or the commitment of bidders themselves. It's simply the case that the Authority has stepped back and reassessed its options to find a less expensive solution to its waste management in these difficult times for council finances.

Some 1.7 million residents live in the NLWA area and the Authority is responsible for helping the seven north London boroughs manage approximately 846,000 of waste a year.

The project was split into two contracts with FCC/Skanska and Veolia shortlisted for the waste disposal services contract, which included production of a solid recovered fuel from waste that cannot be recycled or composted, and EOn/Wheelbrator and Veolia shortlisted for the contract that involved the use of that fuel.

The contracts were estimated to be worth between £3 billion and £4 billion.

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