SITA UK has completed and signed a private finance initiative contract with Cornwall County, UK, Council. The 30-year contract will provide an integrated waste management solution for the county and is the first waste PFI contract structured fully independently of the waste operator.
The Cornwall contract provides a future model for procuring waste PFIs and will make a significant contribution to delivering government policy. The new model will improve the capacity of the waste sector to handle the large level of capital investment required in the UK over the next few years. A key element in making the project robust and bankable is the decision by SITA UK and Cornwall County Council to implement proven technologies.
The European Investment Bank and the Royal Bank of Scotland will provide funding for the project jointly. This is the first waste project that EIB has chosen to support in the UK, and SITA UK and Cornwall County Council are pleased to be involved.
"We're delighted to have closed this contract with Cornwall County Council just nine months after being announced preferred bidder, and to have been involved in creating a new PFI contract model for the waste industry," said Per-Anders Hjort, CEO, SITA UK. "In this new PFI environment, waste management companies need sophisticated resources, experience and finances available in order to deliver these complex contracts; SITA UK has proved it has the ability to manage all of the issues and deliver an effective solution for its client."
Over the life of the 30-year contract, SITA UK plans to invest nearly £150 million to provide Cornwall with a sustainable waste management infrastructure. This investment will enable the council to fulfill its environmental policy and substantially reduce the reliance on landfill in the county, establishing the county's blueprint for long-term sustainable waste management.