UK Projects

The GMWPFI will be the largest waste management PFI let in the UK.

In January 2007, the Viridor Laing consortium was appointed preferred bidder for the Greater Manchester Waste Disposal Authority’s (GMWDA) Waste Management PFI. The consortium is a 50/50 Joint Venture between Viridor Waste Management Limited and John Laing Infrastructure Limited.

GMWDA processes over 1.4m tonnes of municipal waste per annum and wishes to let a waste management contract for the reception, recycling, treatment and disposal of waste, based on its Municipal Waste Management Strategy. This is aligned with the need to significantly reduce the amount of biodegradable waste being sent to landfill in line with new EU Directives.

Viridor Laing would be responsible for the disposal of the municipal waste stream for 25 years (with potential extension to 30 years).

The consortium is developing two options for the TPS, one as part of the PFI and another in partnership with Ineos Chlor, a major chemical producer with a large industrial site locally that would benefit from both power and steam. This provides the client with a comparison of the relative value of funding a TPS as part of the PFI or dealing with a privately funded TPS on a long term gate fee basis.

The Consortium intends to deliver the site redevelopment works and construction of new technology facilities through Costain Limited and the TPS elements through Keppel Segers. The waste disposal Services will be delivered through the operator, a subsidiary of Viridor Waste Management Limited.

The contract will involve the transfer of up to 700 existing staff from the Authority’s wholly owned waste disposal company, Greater Manchester Waste Limited (GMWL) with fixed plant, mobile plant and property to the SPC. This includes the operation and maintenance of an existing TPS at Bolton.

A large waste flow model and a tonnage based payment mechanism drives the financial model. Tonnage adjustments are made in line with actual tonnages received by the consortium’s operator with availability charges for facilities, performance against diversion targets and third party income guarantees from recyclates and electricity form the major components of the payment mechanism.

Construction is due to start early 2008 with completion of the Thermal Power Station scheduled for mid-2012.