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Merseyside PFI Contract May Face Major Delay

When people go into large projects, they know that big obstacles are a distinct possibility. The members of the Merseyside Waste Disposal Authority (MWDA) found out just how big an obstacle can get when they were informed that their £3 billion waste PFI contract may be facing up to a three year delay. The delay, possible due to problems with site acquisition, could potentially cost the Authority £405 million.

The major issues facing the MWDA are the acquisition of building sites. The proposed sites will be two energy recovery facilities with the ability to process 325,000 tonnes of waste per year. In addition to the site acquisition problems, the MWDA was warned that the delay may also cause a “significant risk” of losing PFI credits.

The members of the Merseyside Waste Disposal Authority learned of the snafu at its annual general meeting held on June 27th.

MWDA director Carl Beer has stated that while the efforts to obtain the contract were making “great progress”, the Authority is concerned that the issue of site acquisition could be troublesome. “We will get to a preferred bidder, but the danger is that we don’t have the sites,” Beer said.

If the Authority had its preferences, the sites required for the new waste treatment facilities would be utilised to produce a refuse-derived type of fuel which may later be converted to a product able to create electricity and/or heat.

To learn more about the projects at the MWDA, visit: merseysidewda.gov.uk  or for more information on this story please visit www.letsrecycle.com