Lds 003 4015826-v1-uk based waste resource
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Lds 003 4015826-v1-uk based waste resource Presentation Transcript

  • 1. UK Based Waste Resource – CaseStudiesMichael Grimes, Partner Eversheds LLP20 March 2012
  • 2. Eversheds• An International full service Law Firm• 46 offices across Europe, Africa, Middle East and Asia• An office in Copenhagen – Senior Partner: Nikolaj Juhl Hansen• 250 + public private partnerships• Over 70 waste projects of all types for contractors, municipalities, governments and funders• Collection, transport, recycling, composting, land filling, energy recovery, gasification, incineration, combined heat and power and anaerobic digestion
  • 3. Case Studies• London Borough of Southwark – a unitary council which collects and disposes of waste• Greater Manchester Waste Disposal Authority – a statutory body which has only one function to dispose of municipal waste• Context: Landfill Directive, Landfill Allowances, Landfill Tax > £80 per tonne, Source Separated Collections, waste as a commodity be it recyclate or fuel
  • 4. Southwark Integrated WasteManagement Solution• Southwark is a borough in Central London• A gateway to London and the United Kingdom for immigrants• Very diverse population• Over 100 languages spoken• Largest municipal landlord – very dense housing• Very little spare land• Low recycling• Very poor waste infrastructure
  • 5. Southwark Solution• Integrate collection, composting, recycling, transport and disposal• Contractor to drive waste minimisation initiatives and community engagement• Southwark ran a competitive procurement• 25 year contract, £93 million capital expenditure• Project Net Present Value £665 million• Contract with Veolia• The only integrated contract in the United Kingdom
  • 6. Southwark Key Outputs• 50% recycling by 2021• 84,500 tonnes per year Mechanical Biological Treatment plant• 85,000 tonnes per year Material Recycling Facility• A new household waste reuse and recycling centre• A waste transfer station• A new district heating scheme linking the local energy from waste plant to five housing estates
  • 7. Southwark Key Challenges• Scarce land for a plant• Transient population• Community engagement• High rise dense housing – little source separation• Challenge of kerbside collections – universal service• Population growth from 245,000 to 272,000 by 2021
  • 8. Greater Manchester Waste DisposalAuthority• A separate single purpose authority – one of 6 in England• Serves 9 of the 10 Manchester waste collection authorities• England’s biggest waste disposal authority; 5% of England’s municipal waste• 1.1 million tonnes of waste per year
  • 9. Greater Manchester Waste Disposal Authority Providing a world class solution for Greater Manchester’s municipal waste.9 Collection Authorities 2.2m population 1.1m tonnes p.a. 973k households of municipal waste
  • 10. Greater Manchester – Key Aims• Zero waste• A world class waste solution• Reduce; reuse; recycle/compost; recover value and energy use• Value for money• Equality of access• Climate change agenda• Prevent waste by community engagement and campaigns• Cooperation across the 10 authorities
  • 11. Greater Manchester Procurement (1)• Outline business case - October 2004• Approved affordability of £4.4 billion over 25 years - January 2005• Advertise contract notice - February 2005• Prequalify 5 bidders and receive outline proposals - July 2005• 4 bidders submit detailed proposals
  • 12. Greater Manchester Procurement (2)• Short list 2 bidders - May 2006• Best and final offers - November 2006• Preferred bidder – January 2007• Financial close – April 2009
  • 13. Completion in the Credit Crunch• Major delay caused by funding crises led to innovative funding Source of Funding % Commercial Banks 31 European Investment Bank 23 Equity Investment - Sponsors 19 UK Government Treasury Infrastructure Finance Unit 15 Capital Contribution 8 Greater Manchester Waste Disposal Authority Senior 4 Debt TOTAL 100
  • 14. What does Greater Manchester get forthe money• A 25 year service• Alignment of the Councils to collect 4 streams – paper, card, cardboard cartons – commingled plastic, glass and cans – garden waste and food waste – residential waste• 50 % recycling rate by 2020• 75% diversion from landfill by 2020• £631 million capital investment in new plants
  • 15. The New Infrastructure Completion – January 2012 Total capital cost of new construction: £631 million Capacity for 1.4 million tonnes per annum 25 5 4 4 Mechanical BiologicalEducation Centres Household Waste In-Vessel Composting Treatment Plants (4 Plants Recycling Centres with Anaerobic Digestion) 7 1+2 1 1 Transfer Loading Material Recovery Thermal Power Thermal Recovery Station Facility Station Facility /Green Waste Facilities
  • 16. Green Benefits• Ineos Chlor – Ineos Chlor operate a major chemical plant at Runcorn – Produce chlorine and PVC – Huge energy user – Greater Manchester’s 275,000 tonnes per year solid recovered fuel to be burnt in a combined heat and power plant – produces 500,000 tonnes of steam and electricity equivalent to 1 million homes (20% of their need)• Anaerobic Digestion – Biogas construction – 4 megawatts of electricity to the grid
  • 17. UK Based Waste Resource – CaseStudiesMichael GrimesPartnerEversheds LLPDirect +44(0) 845 498 4796Mobile +44(0) 7831 531 755michaelgrimes@eversheds.com
  • 18. © EVERSHEDS LLP 2012. Eversheds LLP is a limited liability partnership.