The North London Waste Authority has decided not to pursue a judicial review following the axe of £258.4m in private finance initiative credits.
Instead, chair of the NLWA Cllr Clyde Loakes has revealed a revised timetable in which bidders will be able to update their solutions and re-submit.
He said: “We remain disappointed at Defra’s decision to cut our £258.4m in PFI credit support. The decision was unexpected, in large part because our plans had so recently been given the green light. It also goes against the Government’s waste management priorities.
“However, we need to focus on what is the best course of action for the NLWA, which will enable us to achieve our ambition of providing a modern sustainable waste management solution, which offers best value for money to local Council tax payers.
“We felt on balance that pursuing a judicial review, while justified on many levels would not have been in the best interests of local residents.
“We have instead set out a revised timetable which will provide additional time for bidders to update their solutions and to resubmit. We have received an excellent market response from many of the leading waste and energy companies and we look forward to continuing to work with them as our plans progress.”
The Government axed funding for seven PFI projects following the Spending Review in October last year.