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You are here: CIWM  >  Publications  >  Latest News  >  South Tyne And Wear Sign The Deal With SITA UK

South Tyne And Wear Sign The Deal With SITA UK

21 April 2011

The South Tyne and Wear Waste Management Partnership has reached financial close with the SITA Consortium on a £727m deal to treat 190,000 tonnes of residual waste each year

The signing of the 25-year deal comes seven months after SITA UK was announced preferred bidder for the contract ahead of United Utilities. SITA UK's equity partners in the consortium are Lend Lease Infrastructure (EMEA) Ltd and I-Environment Investments Ltd (ITOCHU Corporation).

The deal is the first waste PFI project that is funded by banks to reach financial close under the competitive dialogue process. The funders are Crédit Agricole, BBVA and Natixis.

The contract will involve building a state-of-the-art energy-from-waste (EfW) facility in Teesside, which already has planning permission and an environmental permit. Three associated transfer stations and a visitor and education centre will also be developed in the partnership area. The transfer stations will sort and bulk up the waste before it is transported to Teesside.

The partnership, which comprises Gateshead, South Tyneside and Sunderland councils, has £73.5mof PFI money from Defra to go towards the development of its treatment facility.

Tony Alder project director for the partnership said: "The signing of this contract is a major milestone for our ambitious waste plans. This contract will allow us to significantly reduce our reliance on landfill and provide our residents with a greener waste management service."

Recycling Increase Aims

The treatment contract is just one part of £1.6bn plans to create much more sustainable ways of managing waste in Gateshead, South Tyneside and Sunderland which collectively have 284,000 households.

SITA UK's chief executive officer David Palmer-Jones said: "We are looking forward to developing new and modern infrastructure to manage residual waste from Gateshead, South Tyneside and Sunderland.

"The new energy-from-waste facility in Teesside will produce sufficient electricity to power the equivalent of around 30,000 homes. Sixty-six new operational jobs will be created. We will refurbish one and develop two new transfer stations. As we develop

This new infrastructure we will consult widely with all stakeholders and members of the community."

The partnership aims to increase recycling from 30 percent to 50 percent by 2020. A new kerbside recycling scheme has been introduced across the partnership area. A 240 litre wheeled bin holds commingled glass, tins, plastic and cardboard, with paper collected separately in an inner caddy.

A raft of other new waste contracts designed to divert waste away from landfills and create a more sustainable future for waste services have also been developed.

Darrel Moore