Item_16_Procurement_of_Waste_Management_Facilities by ashrafp


									REPORT TO:              CABINET

DATE:                   17th OCTOBER, 2007





To update Cabinet on progress with the procurement and construction of waste
management facilities across Lancashire including Huncoat Waste Technology Park and
the Whinney Hill Link Road.


1.      That Cabinet notes the report.

2.      That Cabinet recognises the excellent Waste Partnership between the
        Districts and the County Council which is helping to deliver these hugely
        important environmental projects.

2.      That Cabinet notes the wider planning issues that could potentially shape
        Huncoat in the future.

1.0     Background

1.1     The Lancashire Municipal Waste Management Strategy established key targets for
        both Waste Collection and Waste Disposal Authorities. The current strategy is being
        reviewed to reflect the National Waste Strategy 2007.

        Key targets for Waste Collection Authorities :

           At least 90% of all households are provided with a segregated waste collection
            system supported via the cost sharing mechanism. ( HBC achieved 100% )

        Key targets for Waste Disposal Authorities:

           75% diversion from landfill of residual waste
           100% diversion from landfill of garden and kitchen waste
           100% diversion from landfill of dry-recyclate
           No more than 1% growth per annum in waste arisings
           Planting 100,000 trees per year to mitigate carbon dioxide emissions.

1.2     The key targets for the Waste Disposal Authorities are to be delivered through a
        project funded by a mixed economy of Private Finance Initiative Credits and
        prudential borrowing supported by an integrated waste management contract with a
        single contractor. The total cost of the infrastructure is £283 million with £222m
        funded by PFI credits and the balance of £61m by traditional prudential borrowing.

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1.3       The contractor (Global Renewables Ltd of Australia) will Design, Build, Finance and
          Operate (DBFO) seven waste management facilities across the County ranging

              A transfer loading station at Pendle
              Transfer loading stations with enclosed composting and recycling facilities at
               West Lancs, Preston and Lancaster
              Waste technology parks with enclosed composting , material re-cycling facilities
               and waste treatment facilities involving Mechanical Biological Treatment at
               Leyland, Thornton and Huncoat.

1.4           The contract will run for a period of 25 years and will provide a legacy of facilities
              that will move Lancashire from a „throw a way society „ that leaves landfill sites full
              of rubbish to one that recovers the resources it uses and minimises the impact of
              its activities on the environment and residents.

          The benefits of the proposals include :-
           Meeting the Landfill Directive without any form of incineration or combustion of
           Clean process technology with minimum environmental impact
           Restoration of approx 100 acres of contaminated land
           450 permanent jobs across the County
           Employment generation during the construction phase
           Massive reduction in greenhouse gas emissions equivalent to removing over
             100,000 cars from the road
           Renewable energy from bio-gas equivalent to the requirements of 11,000
           Planting 2.5 million trees
           Over 400,000 tonnes of resources recovered from the waste stream each year.
           Provision of environmental education services to a minimum of 300 classes per
           Community engagement programmes supporting waste minimisation and

2.0       Provisional Timetable, Network and Financing

Lancaster transfer station            Commissioning 2009/10
Preston transfer station              Commissioning 2009/10
Leyland technology park               Commissioning 2009/10

West Lancs transfer station           Commissioning 2010/11
Pendle transfer station               Commissioning 2010/11
Thornton technology park              Commissioning 2010/11

Huncoat technology park               Commissioning 2011/12

2.1       In order to rationalise overall project costs :-

         The PFI element will be limited to the Leyland and Thornton waste technology parks

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         Capital expenditure will be funded via prudential borrowing for the infastructure at
          West Lancs, Preston, Lancaster, Pendle and Huncoat. Initially these sites will not
          be provided with a full range of facilities

          In terms of the Huncoat waste technology site it will allow :-

         Construction of a waste transfer station for residual waste, kitchen and garden
          waste and recyclables
         30,000 tonnes per annum enclosed composting plant
         Construction of Whinney Hill link road.

2.2       Capital expenditure on the 100,000 tonne residual waste processing plant at
          Huncoat is to be deferred until a later phase of the development and funded by the
          most effective means at the time. Timing of any second phase is to be kept under
          review dependent on the success of kerbside recycling performance and the rate of
          growth in both residual and organic waste. Subject to such performance, decisions
          on procurement could be delayed until around 2015.

2.3       Blackburn with Darwen Borough Council has withdrawn from the project and will be
          making their own waste management arrangements. Blackpool Council is
          committed to the project.

3.0       Whinney Hill Link Road

3.1       Included within the overall project costs is the construction of the Whinney Hill link
          road which is an extension to the new site access road that forms part of the
          Huncoat Waste Technology Park. The proposed route that will extend from the
          Griffin roundabout on Burnley Road to a junction with Altham Lane then proceed to
          Whinney Hill Road at the junction with Bolton Avenue.

3.2       The estimated cost of the road is £10m (not including land acquisition) and will help
          to ensure that waste traffic has minimum impact on local residents by routing HGV‟s
          away from residential areas on Bolton Avenue and in Huncoat village.

3.3       The provisional timetable is as follows:-

          April 2006 to March 2007
          Complete surveys and investigations to enable a full environmental impact
          assessment of the road to be carried out. Complete design works in sufficient detail
          to submit planning application. Running in parallel, the second application for the
          Waste Technology Park will be prepared as the detailed designs of the contractor
          are developed.

          December 2007 – Early 2008
          Simultaneous submission of planning applications for both the link road and the
          final proposals for the waste park.

          December 2007
          Subject to satisfactory planning consents, the making of compulsory purchase
          orders ( CPO‟s ) for all the land required for the construction of the road and the

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        December 2007 to August 2009 ( variable )
        CPO procedures including a request for a joint public inquiry into the CPO‟s and
        planning application if necessary.

        September 2009
        Commence road construction and waste technology park

        Commissioning of the waste park

4.0     Current Position

4.1     The PFI contract was signed by Lancashire County Council, Blackpool Borough
        Council and the contractor Global Renewables Lancashire Ltd on the 2 nd March,

4.2     A judicial review of the planning approval at the Leyland Site is due to take place on
        the 20th and 21st September, 2007. If the Court overturns the approval then the
        County Council‟s development control committee would have to redetermine the
        application as soon as possible to limit delays and cost implications. It is anticipated
        that the site should be fully operational by 2010 subject to the judicial review.

4.3     Work has begun on decontaminating the site at Thornton. The site should be fully
        operational by 2011.

4.4     The „soft elements‟ of the PFI contract including waste minimisation, education,
        community liaison, and local market development is underway. 8 appointments
        have recently been made.

4.5     Consultants have been appointed to design the waste transfer and in-vessel
        composting facility at Huncoat and tenders for the composting facility are to be
        invited shortly. The option to include an MBT facility is under review.

4.6     Planning approval has been given for a new access road from the Griffin
        roundabout to the site. Approval is yet to be granted for the proposed extension
        around Huncoat village.

4.7     In the period of time between the completion of the Leyland Plant and the
        completion of the Huncoat plant non-recyclable waste will continue to be landfilled
        at Whinney Hill. It is not intended to transfer residual waste for MBT processing at

5.0     Planning for Huncoat

5.1     Huncoat is in a strategically important location with ready access to the motorway
        and trunk road network. However, there is a substantial amount of industrial
        development in and around the area that gives rise to heavy goods vehicle traffic
        using residential roads. This has been a cause of concern for members, particularly
        in relation to Bolton Avenue.

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5.2     The proposed Whinney Hill link road provides not only an opportunity to reduce the
        number of heavy goods vehicles using Bolton Avenue1, but also provides a means
        of re-routing some of the heavy goods traffic that approaches Whinney Hill/Huncoat
        from Whalley Road. The area around the “Hare and Hounds” junction on Whalley
        Road suffers from poor air quality and a reduction in the number of heavy goods
        vehicles using this stretch of road would be a significant step forward in helping to
        reduce congestion and improve air quality.

5.3     The development of a new link road around Huncoat would also provide an
        opportunity for new, high quality development, that would have ready access to the
        trunk road and motorway network. This would have to be taken forward through the
        Core Strategy2 for the Local Development Framework that is currently being
        prepared. If found acceptable, these proposals would need to be developed
        through an Area Action Plan for Huncoat that would look at the area as a whole and
        the opportunities that exist and need to be developed.

6.0     Implications

         Issue                             Comments

         Financial (including              Funding is provided through PFI credits and LCC
         mainstreaming)                    Capital borrowing
         Legal                             There is a contract between LCC and Global
                                           Renewables Lancashire Ltd
         Assessment of Risk                Failure to deliver the projects would incur LATS fines
                                           by not achieving landfill diversion targets
         Equality                          The projects will serve all householders
         Key Decision                      None - For information purposes only

7.0     Consultations

7.1     The County Council has carried out extensive consultations on the projects.

8.0     Links to Corporate Priorities

         Priority                                     Comments

         Corporate Governance and
         Community Leadership
         Community Safety
         Housing and the Environment                  By reducing the amount of household waste
                                                      taken to landfill.
         Economy and Employment                       The project will offer opportunities for
         Culture and Leisure
         Other priorities with partners:

  This would have to be done through a Traffic Regulation Order that would impose a weight limit
on Bolton Avenue.
  The Core Strategy would be subject to public consultation
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         Health and Social Care
         Education and Lifelong Learning

9.      Local Government (Access to Information) Act 1985:
        List of Background Papers

9.1     No background papers

10.     Freedom of Information

10.1    The report does not contain exempt information under the Local Government Act
        1972, and all information can be disclosed under the Freedom of Information Act

11.     Exempt Report (if applicable)

11.1    Not applicable

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