FC for Yorkshire waste plant

The concessionaire for the North Yorkshire and York Waste PPP has signed loan agreements with six banks

Financing for the Allerton Waste Recovery Plant waste plant has closed after North Yorkshire County Council and City of York Council formally signed the contract to design, construct and operate an integrated waste management facility with a consortium led by the AmeyCespa joint venture.

The Green Investment Bank (GIB) will provide  £33m through long-term loan financing and an equity bridge loan alongside Nord/LB, Sumitomo Mitsui Banking Corporation, Siemens Bank, KfW-IPEX and the European Investment Bank (EIB). The EIB has agreed to provide £150m.

The agreement to finance the project marks the first time that the EIB has invested alongside the GIB. Financial close was reached on 30 October.

The borrower is the SPV awarded the PFI contract in 2010 created by Amey Ventures and Cespa, with Aberdeen UK Infrastructure Partners (a fund managed by Aberdeen Asset Management) and Equitix as co-sponsors.

Construction of the facility is now expected to begin in December 2014 and take approximately 36 months to complete. It will become fully operational during 2018.

The new plant will process all residual waste from North Yorkshire County Council and the City of York with remaining capacity used to process commercial and industrial waste sourced locally. The plant will process up to 320,000 tonnes of waste per annum, producing over 203 GWh per year of electricity.

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