Derby's £900m waste management contract brought to an end

Written by: Jo Gallacher | Published:
An artist's impression of the Sinfin gasification plant

The £900 million waste management contract between two Derby councils and Resource Recovery Solutions (RRS) has been brought to an end.

Banks funding the project issued a legal notice to end the contract 14 days after being served, with the both Derby City Council and Derbyshire County Council not disputing the notice.

This follows months of negotiations after the councils asked the banks to step in and get the Sinfin gasification facility, which was supposed to be fully operational in 2017, up and running.

RSS is a joint partnership between Renewi and national construction firm Interserve, with the latter responsible for building the waste treatment facility.

Contingency measures have been put in place by the councils to make sure waste that residents cannot recycle continues to be dealt with and recycling centres and waste transfer stations are open as usual.

These services will continue to be run by waste management company Renewi under a new two-year contract.

Work will continue at the gasification facility to determine the steps needed to make make it fully operational.

Chris Poulter, leader of Derby City Council, said: “Though it’s disappointing to have ended up in this position, we’ve been preparing for the possibility of the contract coming to an end for some time now.

“We need a facility to give us certainty about the future cost of dealing with Derby and Derbyshire’s waste. We remain committed to fully completing the plant and we’re confident there is the industry expertise available in the market to help us achieve this.”

Funding for the facility has been loaned to RSS by the UK Green Infrastructure Platform and three international banks.

The councils will now enter negotiations to pay the banks an ‘estimated fair value’ for the plant which will take into account the cost of fixing ongoing operational issues and providing the services to meet the agreed contract standards.

They are open to waste industry businesses looking to take over the contract.

The facility aims to divert 190,000 tonnes of waste per year away from landfill to help power 14,000 homes via gasification.

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