North London scraps waste PPP

North London Waste Authority (NLWA) has ended its procurement of a new £600m waste plant.

The authority has said it now believes a “less expensive solution” can be found that will help limit the impact of waste management costs on council tax.

“This change in approach is due to changing circumstances, including recent developments in the planning policy situation in north London,” the NLWA said.

An alternative approach will now be developed based on the continued use of the authority’s existing Edmonton incinerator. The NLWA will continue to explore the potential of a new energy recovery solution to take over from the existing facility, including providing a combined heat and power plant.

“This decision will save north London money in the short to medium term, and could save us a total of up to £900m over almost 30 years,” said councillor Clyde Loakes, chair of the NLWA.

The scheme had faced a series of hurdles, after seeing its PFI credits withdrawn as part of the 2010 Comprehensive Spending Review. In January this year, Veolia Environmental Services pulled out of the running leaving only an FCC/Skanska consortium on the shortlist.

For more information on the contract, click here.