£181.6 million of PFI funding for waste facilities in England (03/10/2008)

London:  Waste facilities in Leicestershire and the South West are to receive PFI funding amounting to a combined total of £181.6 million, announced Defra yesterday. Defra has now committed over £1.4 billion to 29 PFI projects, and there are an additional 17 projects in the pipeline.

In Leicestershire, the investment is expected to divert 98,000 tonnes of biodegradable municipal waste (BMW) from landfill in target year 2020.  While in the South West the PFI project will divert 293,000 tonnes from landfill in the same target year.

Such diversions of BMW are essential if the UK is to meet its Landfill Directive targets as the UK has one of the highest levels of landfill in Europe and in 2006, 60% of the 35.5 million tonnes of municipal waste went to landfill.

"Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by Leicestershire and three authorities in the South West"
Joan Ruddock, Waste Minister

Leicestershire  expects to reach the Government's 2020 recycling target of 50 per cent 10 years early, but the authority is aiming high with plans to reach 58 per cent by 2017. In the South West to, an outstanding 92 per cent of biodegradable waste in the area will be diverted from landfill.

Carbon savings

 Defra estimates that the combined schemes could provide total net carbon savings of 53,260 tonnes in 2019/20, compared to the current situation, and this is without energy output utilisation. Combined heat and power (CHP) could up this total to 121,500 tonnes of savings.

The South West partnership comprises Plymouth City Council, Torbay Council and Devon County Council, (covering the districts of South Hams, Teignbridge and West Devon).

Waste Minister Joan Ruddock said:

"Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by Leicestershire and three authorities in the South West.

"PFI agreements like this create a real incentive for local authorities and industry to work together to cut waste and make better use of the waste we do create, as well as reducing our impact on the environment."

The climate change impacts of projects are considered during the procurement process. The authorities will be issuing their notice to prospective bidders in the Official Journal of European Union (OJEU) shortly.

Further information

The UK is required to reduce the volume of biodegradable municipal waste sent to landfill to 75% of the 1995 levels by 2010; 50% by 2013; and 35% by 2020, under the Landfill Directive.

In the Waste Strategy for England. 2007, Defra published new national waste targets. These include higher targets for recycling and composting of household waste to at least 40% by 2010; 45% by 2015; and 50% by 2020.1.

The Comprehensive Spending Review (CSR) 2007 provided Defra with additional funding through PFI. The overall level has risen from £280m in 2007/08 to £600 million, and £700 million over the following years, totalling £2 billion of further investment in waste infrastructure.

The Environment Agency's WRATE (Waste and Resources Assessment Tool for the Environment) tool was used to calculate the climate change impacts of the possible waste solution. The reduction in carbon dioxide equivalent is compared to the do nothing landfill option.