Government pulls plug on three major waste projects

Aaron Morby 10 years ago

The Government has withdrawn its financial support for three major waste incinerator schemes leaving contractors in limbo on major pipelines of work.

The decision to withdraw PFI credits vital to financing the projects was taken after Government decided it was backing enough schemes to fulfil the EU’s target of reducing waste sent to landfill in the UK.

All other planned projects other than 29 already earmarked for support will also be stopped in their tracks.

Most advanced projects hit are Skanska’s waste-to-energy plant in Bradford and AmeyCespa’s in Allerton, North Yorkshire where Vinci was main contractor on the £65m job.

It is a particular blow for Skanska, which was gearing up for its debut project in the specialist energy from waste market with joint venture partner AECOM .

Another scheme planned for Merseyside and Halton has also had its financial support withdrawn.

The decision is a huge blow to sector and means that no other scheme than the 29 earmarked for support will be built for the time being.

A DEFRA spokesperson said: “We are investing £3.6 billion in 29 waste infrastructure projects. This will reduce the amount of waste sent to landfill, promote recycling and stimulate economic growth.

“We now expect to have sufficient infrastructure in England to enable the UK to meet the EU target of reducing waste sent to landfill. Consequently the decision has been taken not to fund the remaining three projects.

“This does not necessarily mean the three projects will stop. That will be a decision for the Local Authorities concerned. We will continue to provide commercial and technical advice to those projects that continue with their procurement process.”

Councils are now looking at how to make up the project funding shortfalls but with budgets stretched firms are not holding out hope of alternative funding.

Patrick Twist, Infrastructure Partner at Pinsent Masons, said: “The Government had previously withdrawn credits from seven projects in 2010 but allowed these three to proceed.

“It is difficult to reconcile this very late withdrawal of support by Defra with the Coalition’s stated commitment to investing in economic infrastructure and boosting the construction industry.

“Without Waste Infrastructure Credits, the three projects are unlikely to proceed.”


Schemes built and going ahead
Project WI credits approved (£m) Contract signed Current project status Contractor
Isle of Wight 13 Signed 1997/98 Fully Operational Biffa
Herefordshire & Worcestershire 57.4 Signed 1998/99 Partially Operational Mercia Waste Management
Kirklees 33.9 Signed 1997/98 Fully Operational Sita
South Gloucestershire 34.3 Signed 1999/00 Fully Operational Sita
Surrey 85.5 Signed 1999/00 Partially Operational Sita
Central Berkshire (i) 37 Signed 2006/07 Fully Operational WRG
East London Waste Authority 47 Signed 2002/03 Fully Operational Shanks
East Sussex, Brighton & Hove 49 Signed 2002/03 Fully Operational Veolia
Leicester City 30.84 Signed 2003/04 Fully Operational Biffa
West Sussex 25 Signed 2003/04 Fully Operational Viridor
West Berkshire 28.49 Signed 2007/08 In Construction Veolia
Cornwall 45 Signed 2006/07 Partially Operational Sita
Nottinghamshire 38.31 Signed 2006/07 Partially Operational Veolia
Lancashire 90 Signed 2006/07 Fully Operational Global Renewables
Northumberland 40.8 Signed 2006/07 Fully Operational Sita
Shropshire 40.8 Signed 2007/08 Partially Operational Veolia
Wakefield 33 Signed 2012/13 Contract Signed Shanks
Greater Manchester Waste Disposal Authority 124.5 Signed 2009/10 In Construction Viridor Laing
Southwark 34.5 Signed 2007/08 Fully Operational Veolia
Cambridgeshire 35 Signed 2007/08 Fully Operational Amey Cespa
Leeds 68.6 Signed 2012/13 Contract Signed Veolia
Suffolk 102 Signed 2010/11 In Construction Sita
Barnsley, Doncaster and Rotherham 77.4 Signed 2012/13 Contract Signed Shanks/Scottish and Southern Energy (SSE)
South Tyne & Wear (ii) 73.5 Signed 2010/11 [In Construction] Sita
Staffordshire 122.4 Signed 2010/11 In Construction Veolia
South West Devon Waste Partnership (iii) 95 Signed 2010/11 In Construction MVV Umwelt
Hertfordshire 115.3 Signed 2011/12 Contract Signed Veolia
Norfolk 91 Signed 2012/13 Contract Signed Cory Wheelabrator
Essex and Southend 100.9 Signed 2012/13 Contract Signed Urbaser/Balfour Beatty

Latest news

Ten demolition firms fined £60m for bid rigging

Full details of fines as Erith and Keltbray hit hardest
10 hours ago

20 firms win £4.5bn Southern construction framework

A dozen new firms secure spots on fifth generation public sector deal
14 hours ago

Call grows for bolder 18m second staircase rule for flats

Architects, surveyors and builders professional trade bodies demand lower height threshold than proposed 30m
13 hours ago

GRS Roadstone warns staff following cyber attack

Materials giant sends out letters highlighting the extent of the attack
14 hours ago

Inland Homes to suspend shares as results delayed again

Auditors need more time to go through embattled house builder's books
13 hours ago

Kier wins £73m Southport events centre job

Local supply chain set to benefit from major new project
13 hours ago

Multiplex profit rebounds as margin restored to 2.9%

London tower builder predicts return to revenue growth this year as major schemes advance
1 day ago

Upbeat Vistry to re-open mothballed offsite factory

Former Countryside timber panel factories rebranded Vistry Works in revived drive to deliver 5,000 units a year
1 day ago

Builder crushed and blinded in wall collapse

Property owner in court after barn conversion goes horribly wrong
1 day ago

Keltbray bags £140m haul of energy infrastructure work

Specialist secures trio of power frameworks, two battery storage facilities and an energy from waste package
1 day ago

Government awards £1.8bn for energy retrofit schemes – list

Housing and public building decarbonising funds awards to support 20,000 construction jobs
2 days ago

Landmark London scheme switches from flats to student rooms

Regal London rethinks Old Kent Road scheme with 900 student rooms and 220 affordable homes
2 days ago

Align reveals designs for final portal of HS2 tunnel

Contractor confirms how final key structure on project will look
2 days ago

Plans in for 1.4m sq ft of industrial space at Fiddlers Ferry

Peel NRE to appoint demolition contractors for coal-fired power station in weeks
2 days ago

Tilbury Douglas to replace hospital hit by weak concrete

Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
2 days ago

Derby picked as destination for Great British Railways HQ

Public vote secures Derby's bid to be nerve centre of the rail industry
2 days ago

London tower over historic Leadenhall market approved

Building work to start in 2025 on 32-storey tower by historic city market
3 days ago

PfH starts race for £520m housing decarbonising deal

Four-year framework covers service specific lots from £5m to £100m
3 days ago

“Rock solid” balance sheet and record results for Henry Boot

Firm sees early signs of recovery this year in core markets
3 days ago

£200m Edinburgh Haymarket office and hotel approved

Haymarket Yards scheme to move to construction in 2024
3 days ago

Countryside closes deal for £80m build to rent homes

Deal with private rental developer Sigma to speed up delivery at two sites
3 days ago

Wates commercial director joins Caddick

Neil Trubshaw one of a string of appointments as contractor looks to expand across the north
3 days ago

Fusion21 names 16 winners for £125m painting framework

Latest deal will last four-years for public sector clients
3 days ago

Watkin Jones breaks ground on Cardiff 700 flats scheme

Largest build-to-rent scheme in Wales gets underway
4 days ago

Green light for Birmingham 540-bed student scheme

Work to start on Gough Street student tower this summer
4 days ago

Erith to transform former Ebbsfleet quarry

Joint venture with Henley Developments will see 6,250 new homes built in Kent
4 days ago

Morgan Sindall wins £44m Stevenage leisure hub job

Consolidation of town's sports facilities into one building will release land for 200 homes
4 days ago

Brickies back on the BBC for new series

Season two of popular programme following workers at Hodgkinson Builders
4 days ago

Subcontractors wanted across Newcastle

Latest Constructionline Meet the Buyer event: Register now
4 days ago

Green light for BBC’s £200m new Birmingham home

BAM Construction tipped for historic Typhoo Tea Building conversion
7 days ago

Contractor services