The Coalition Government announced yesterday that it was cutting the promised £258.4 million PFI credit support to the North London Waste Authority (NLWA) waste management project.
Project approval was confirmed in July 2010 by the new Coalition Government including confirmation that the NLWA's proposals matched the Coalition Government's waste management priorities.
Councillor Clyde Loakes, Chair of the NLWA, said:
"This is bitterly disappointing and a bizarre announcement. The Coalition has cut its funding for this project when it confirmed the approval as recently as July.
"As yesterday's decision stands the Coalition Government cannot continue to claim that it seeks to be the 'greenest ever'; to want to see a major expansion in Anaerobic Digestion, to support an increase in renewable energy and to support the 'green economy'.
"Yesterday's announcement by the Coalition Government means that they have withdrawn support from a project that provides a 470,000 tonne increase in the UK's Anaerobic Digestion capacity. This would generate 117 megawatts of renewable energy - equivalent to the energy demand of 45,500 homes - and a project that would create 700 jobs.
"This decision is not about value for money - it is simply the Government imposing a greater tax burden on the local council tax payer in already challenging times. It should be reversed and we have today written to the Government on that basis."
The award, worth £500 million in cash terms over a 25 year period, was provided to assist the NLWA in procuring new waste management and energy facilities. This includes new recycling, Anaerobic Digestion and Mechanical Biological Treatment facilities which are designed to minimise the municipal waste that goes to landfill.
The NLWA has a number of serious bidders for the project and is currently evaluating outline solutions, with the intention of making contract awards in October 2012.
Notes for Editors
The NLWA is the statutory waste disposal authority for the London Boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest.
The Authority manages the disposal of approximately 900,000 tonnes of municipal waste per annum - approximately 3% of the national total. This is expected to grow to more than one million tonnes in the future partially as a result of housing growth.
The eight North London authorities (NLWA and seven Boroughs) have agreed a joint municipal waste management strategy which includes an ambition for 50% of North London's waste to be recycled and a significant reduction of waste that goes to landfill.
Find out further information on the Authority's procurement.
On 21 April 2010, the NLWA published contract notices to prospective bidders in the Official Journal of the European Union.
The list of bidders who were invited to provide outline solutions is availablehere
For further information please contact David Tuddenham, Communications Manager, North London Waste Authority on 020 8489 4360 or firstname.lastname@example.org