Culture, Communities and Business Services Overview and
Scrutiny Committee:
18th March 2010
AGENDA ITEM 5
WASTE DISPOSAL PRIVATE FINANCE INITIATIVE
1.0
Matter for consideration
1.1
The Committee to consider an update report on the Waste Disposal Private Finance
Initiative (PFI).
2.0
Recommendation(s)
2.1
To note the report, asking questions in relation to its content and making
recommendations as considered appropriate.
3.0
Summary of Key Issues
3.1
Introduction
3.1.1
At the end of 2006, the Executive agreed to the Council proceeding to financial close
of the Waste Disposal Private Finance Initiative (PFI) contract with Lancashire County
Council and the Global Renewables Limited consortium, now known as Global
Renewables Lancashire Limited (GRLL).
3.1.2
The twenty-five year contract is for the provision of an integrated waste disposal
infrastructure to deal with the household waste generated by the residents of
Lancashire County and Blackpool Councils.
3.1.3
The PFI contract includes the construction of major processing facilities at a cost of
approximately £250 million. At the core of the contractual arrangements is the delivery
of services for the diversion of waste from landfill, based upon a detailed output
specification. Key elements of the specification are as follows:
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56 per cent diversion of residual waste from landfill.
95 per cent diversion of kitchen and garden waste from landfill.
93 per cent diversion of separately collected co-mingled plastics, glass and
metals from landfill.
100 per cent diversion of separately collected paper, glass, plastics, metals,
cardboard and glass from landfill.
Provision of an environmental education service to a minimum of 300
Key Stage 2 school classes per year. This includes both visits to the
Environmental Education Centre at the Leyland Waste Technology Park and
in-school curriculum activity.
A local market development programme for recovered materials.
A waste minimisation and community engagement programme to support the
take-up and performance of kerbside recycling services.
The planting of 100,000 trees per year utilising the recovered organic materials,
including the remediation of brownfield land and as a CO2 mitigation.
3.2
Infrastructure Construction Progress
3.2.1
The scheme centres on two waste processing plants: one at Leyland and the plant for
processing Blackpool’s waste at Thornton. Construction of both facilities is progressing
well, with GRLL aiming for ‘practical completion’ at the end of this month.
Commissioning of the plant will then follow, whereby waste will begin to be processed
at the plant at ever-increasing levels throughout the ‘ramp-up’ period.
3.2.2
The website www.globalrenewables.co.uk includes photographs of both sites during
the construction of the processing plants. Publications are also available, including
details of the environmental education programme and newsletters for each site. A
copy of the latest newsletter relating to the Thornton site is attached at Appendix 5 (a).
3.2.3
It is worth noting that the Thornton site has achieved 650,000 hours worked
continuously without a Lost Time Incident, i.e. no accidents resulting in sickness
absence. To mark this achievement, GRLL and W2R (Waste to Resources) will make
a donation of £1,000 each to a local charity.
3.2.4
As construction nears completion, GRLL have started the recruitment and training of
some 200 employees needed to operate the plant. This has taken place in conjunction
with the Department for Work and Pensions and Blackpool and Fylde College. The
vast majority of new employees were previously unemployed within the FY post code
area which has provided a welcome boost to the local economy.
3.3
Education
3.3.1
The Education service is already established and working well with schools across the
partnership. Introductory school visits are taking place across Blackpool and the
service is receiving high levels of customer satisfaction. A total of 97 per cent of
schools responded to the questionnaire and 99 per cent indicated satisfaction with the
service provided.
3.3.2
An added bonus for the service was winning the best Green Audio-Visual award in the
2009 Green Awards for Creativity in Sustainability. The award was for three waste
related short films that form part of the education resource pack “Adventures on the
Environmental Journey”. The resource pack can be found on the Environmental
Education pages of the Global Renewables website.
3.4
Impact on Blackpool’s Household Waste Service
3.4.1
We are planning to start delivering our residual ‘grey bin’ waste to the Thornton plant
in April. This is dependant upon the site achieving practical completion and being
ready to accept waste as part of the ramp-up process.
3.4.2
As indicated in the previous report, in order to maximise the efficiency of the green
waste processing plant, we need to remove cardboard from the green waste. The
intention is for residents to put paper and card together in a new sturdier bag and for
this to be collected on the appropriate recycling collection day. We are in the process
of ordering the new bags and intend to distribute them and start the new system in the
summer.
3.4.3
A short time after the removal of cardboard from the green waste bins, we will allow
residents to put food waste into their green bins. We will start communicating the
changes to residents formally in June.
3.5
Conclusion
3.5.1
Whilst the cost of the PFI scheme is high, it ensures that Lancashire County and
Blackpool Councils meet government targets in relation to recycling and landfill rates.
The cost of not meeting the landfill targets, in terms of the resulting fines, would be
significantly higher.
4.0
Witnesses / representatives
4.1
As requested by the Committee Members, the following persons have been invited to
attend the meeting to speak on the matter:

Paul Taylor, Assistant Director of Street Scene and Property
Relevant officer:
Paul Taylor, Assistant Director of Street Scene and Property
Tel: (01253) 478400, e-mail: paul.taylor@blackpool.gov.uk
Appendices attached:
Appendix 5 (a) – Thornton Newsletter Issue 8 (January 2010)
Background papers:
None.
Websites and e-mail links for further information:
www.globalrenewables.co.uk
Glossary:
PFI – Private Finance Initiative
GRLL – Global Renewables Lancashire Limited
W2R – Waste to Resources