PROGRESS REPORT


       REPORT No. 1

          MAY 2001

It is DCWM’s intention to provide a concise monthly report for the duration of the
contract, the report will summarise all topics considered appropriate at the time.

As works progress on site photographs will be included and the timetable updated.

Removal of Redundant Baler & Plant

The old waste baling machine and associated plant are now removed from the building,
there is some tidying to be done before CPS can commence works but this is already in

Contractual matters with CPS

The first payment (10% of total) was made to CPS in the second week in May, following
the signing/commencement of the contract on 3rd May.

The next invoice due is for 7.5% in the week commencing 18th June as CPS mobilise
equipment to site and commence works, this is due for payment by 2 nd July.

CPS have asked permission to delay the delivery of the shredder so that it can be
offloaded directly onto its foundations upon arrival rather than standing outside. This has
no effect on the total build-time, the only difference to CDAD is that the staged payment
on delivery of the shredder will be later, when the dates are agreed we will confirm it. (It
also prevents any risk of vandalism)

Project Timetable

Since contract commencement there have been no changes to the overall schedule that
could change the planned commissioning date. (There will be the minor change to the
shredder delivery which will not effect the overall time scale). We are therefore still
working to the same main dates of Project timetable rev5 (30 th April) in the supply
contract, which should see completion testing on the 6th December and processing of
waste starting on 7th December.

Planning Permission

Processing of the application for planning permission was delayed by Durham County
Council beyond the original date of 4th May. We have been informed verbally that there
are no objections and the case officer has written a report recommending it for approval
in the committee meeting planned for 28th June.

The site works that commence on 20th June are all internal to the building, the
programme as it stands at present does not see any external building additions until
after 19th July (following the curing of the foundations)

Colours have been approved for the building modifications and the contractor has been
informed so that an order could be placed for the cladding.
Waste Management Licence Modification

The Environmental team in Head Office are busy assembling a new working plan for the
site so that the Environment Agency can issue us with a Licence modification to
incorporate the new process. (A site meeting is arranged with the EA for 4th June)

Commencement of Works

The main contractor CPS and their civil engineering team are mobilising to site on
Monday 18th June, they will spend several days setting up portakabins etc and should
start work on Wednesday 20th on the shredder pit and separation wall modifications

Visit to CPS in Sheffield on 17th May

The MSW Shredder was inspected at their works and looks impressive, it was awaiting
the fitting of support steelwork under fabrication at the time of the visit. Fabrication works
on the digester vessels were due to start shortly following approval by their consultants
of the final structural design specific to the Thornley site.

Newcastle University

Following a meeting at the University on 11th May and a site meeting at Scoby Scaur
closed landfill site on 15th May we requested a revised proposal with more detail of the
works. The new proposal was received on 29th and is currently being reviewed.

Arrangements are going to be put into place so that as soon as the first samples of
compost are available from the plant analytical work will commence in the laboratory, it
is anticipated therefore that some initial results are available in the first week in January.
We anticipate that several months of laboratory testing will take place before any
material is spread on restored Landfill Site grassland in Spring 2002 weather permitting.

Risk Assessments

   1. The main risk at present is the delay in the planning permission, if the permission
      is not granted on the 28th June we have a serious problem and will call an
      emergency meeting between DCWM, CDENT and a senior representative from
      the Planning Department at DCC. To minimise this risk we have checked verbally
      with Jane Douglas that the determination date is still on schedule and this was
      recently confirmed by John Suckling in a meeting.

   2. The secondary risk at present is if there was a delay in the Environment Agency
      permitting us to operate the plant. This is now less of an issue than it was
      because we now do not require a PPC permit with the throughput being less than
      25 tonnes per day. We were then informed by the EA that a new Waste
      Management Licence was required which even though was less onerous than a
      PPC permit nevertheless would be very time consuming. We have recently being
      informed that we can operate the plant on the back of the existing Waste
      Management Licence following approval of a new working plan describing the
      operation and monitoring of the new process. To minimise this risk we intend to
      have the whole working plan submitted to the EA before the end of June, giving
      them 5 months to approve it and make any amendments.
These are the two main risks at present but with site development starting soon there
will be new risks to be assessed in the coming months.

Budget & Contractual additions

There have been no changes or additions this month that could affect the contract price.

Health & Safety matters

A Heath & Safety Plan has been written, a copy of which is displayed in the site office in
order to comply with CDM regulations. Any visitors to the site must be equipped with
hard-hat and fluorescent jacket unless prior arrangements have been made.

Risk assessments will be carried out at site meetings prior to commencement of
potentially dangerous parts of the building programme, for example, opening up the wall
for the new conveyor.


An agreement with Northern Electric has been signed to increase the available capacity
in the electrical sub-station to provide the necessary capacity for the new plant. This
comes into effect from October 1st, about a week before it should be required and was
agreed suitable by CPS.


CPS have been put into direct contact with Gentle Persuasion in order to prevent
duplication of press releases and any misunderstanding.

Other Comments

Please note that I am on holiday from Monday 4th June until Tuesday 13th June, in my
absence please contact Alan Hodgson with any queries.

Next Report

The next monthly report will include photographs of progress on site and a summary of
the internal project review meeting to be organised for the last week in June. The review
meetings will be held monthly thereafter, the last week in the month.

Any other information required in the mean time please call or e-mail me.

Please find attached overleaf the latest summary of the contract timetable.
(this shows the old shredder delivery date, new date TBA)

M.F. Johnson, 31/05/01
Projects Manager
0191 3844000
Please note line 45,46 and 49 are wrong but the programme is locked by the contractor- awaiting new version

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