Babcock International and Shanks Waste Management have reached an agreement to bring the Wakefield waste PFI project to financial close.
The two companies have reached a “teaming agreement” to deliver Wakefield metropolitan district council’s contract to divert 200,000 tonnes of municipal waste in the region.
Proposed solutions for the project include an autoclave, a MRF and an anaerobic digestion facility. In total, the project has received Government financial support to the value of £33m.
The agreement also includes a mechanism which allows Shanks to acquire Babcock’s waste business following the financial close of the project.
Wakefield metropolitan district council chief executive Joanne Roney said: “We are very pleased that Babcock and Shanks have entered into this agreement and I look forward to working with the team to move the project to financial close.”
The future of Wakefield’s PFI project was first called into question with the announcement that Babcock was “reviewing exit options” in a recent financial statement.