The 25-year deal was reached without requiring intervention from the Treasury with a syndicate of three banks Sumitomo Mitsui Banking Corporation, Barclays and NIBC (4 June).
As part of the contract Shanks will develop two 75,000 tonne per annum mechanical biological treatment facilities as well as develop and manage Cumbrias existing household waste recycling centres. The firm hope that this will enable Cumbria to divert 67 per cent of its household waste from landfill by 2015 (see MRW story).
Shanks managing director Ian Goodfellow said: We are delighted to have now concluded the financial negotiations on this, Shanks fourth PPP contract in the UK. We look forward to working with our client Cumbria County Council and beginning the task of minimising the amount of waste sent to landfill and maximising the opportunities for recovery and recycling of materials.
Cumbria County Council head of waste management Graham Harrison said: As well as having major environmental benefits by reducing the amount of methane produced by rotting rubbish, the contract will also ensure Cumbria avoids increasingly expensive penalties and landfill taxes that we would face if we continued to landfill.
The news comes as MRW reported last week that the £700 million Wakefield waste management private finance initiative is set to reach financial close without help from the Government. Three banks are understood to have come together to supply the full senior debt package for the 25-year deal.