WRG’s proposed Hull energy-from-waste facility (EfW) will not go ahead, after Hull City Council and East Riding of Yorkshire Council mutually agreed not to carry on with WRG’s existing contract.
A joint statement said: “Of course, it is always very disappointing to lose a long-term contract but we feel that, in the circumstances, this is the most satisfactory and cost-effective outcome for all parties and for the council tax payers of Hull and East Riding.
“It is acknowledged [WRG has] an excellent day to day working relationship with the two councils which has provided excellent service delivery throughout the contract’s life.”
The waste management company will continue to provide the current waste management service for the two councils until March 2013, which WRG reassures its “very high service levels will be maintained”.
However, WRG signed a 25-year contract with the councils in 1999, which should see WRG carrying out waste services for the councils until 2024.
The company had proposed to build an EfW facility at Saltend which was capable of treating 240,000 tonnes of waste each year, generating enough electricity to power 20,000 homes. But a spokeswoman told MRW that it would now “not be built within this contract”.
WRG explained that “contractual problems in recent years” added to the decision to re-procure the contract in 2013. However, the company was unable to expand on what this referred to. According to local media reports the cost of the planned facility was never disclosed and it was felt by some opposed to it that with the increase in recycling, it was no longer needed.
WRG added: “Energy from waste technology isn’t in question here. WRG is still fully supportive of EfW technology, while recognising that the needs and preferences of every local authority and its residents are unique.” WRG will be able to bid for the contract along with other waste management companies when the contract comes up for re-procurement.