SITA UK and Cornwall Council have agreed to a variation in their 30-year residual waste and recycling contract, following delays to receiving planning permission for an energy from waste plant in the county.
Under the Private Finance Initiative, SITA UK plans to build a 240,000 tonnes per year energy from waste facility at St Dennis.
Once third party waste and electricity revenues are taken into account, total project revenues are expected to reach £1.4 billion.
The net present value of cost for Cornwall Council on a comparable basis has increased by 1.6 per cent from £426 million to £433 million “despite the significant additional costs caused by repeated challenges to planning permission” according to a SITA statement.
SITA UK was awarded the contract in October 2006, but this contract variation was required following the delays in planning permission being granted.
With the facility now receiving planning permission, and granted its Environmental Permit, it is now expected to be operational in 2016.
SITA UK is owned by Suez Environnement.
Suez Environnement chief executive Jean-Louis Chausssade said: “This is a significant PFI contract for Suez Environnement and SITA UK. Building on a strong performance in the delivery of the much needed Cornwall Energy Recovery Centre which will reduce the county’s reliance on landfill and create energy by putting residual waste to good use.”
A spokesman for Cornwall Council added: “The signing of the revised project plan provides long term security for the management of Cornwall’s waste. At the centre of the plan is establishment of the new Energy Recovery Centre.
“This facility, which is expected to become operational in 2016, will generate enough electricity to supply 21,000 homes in Cornwall.”