On 14 November 2007, the council's Executive Board Members approved the submission of an Outline Business Case (OBC) to the Department of Environment, Food and Rural Affairs (Defra) for Private Finance Initiative (PFI) credits to support the council's proposed residual waste treatment project.
An executive summary of the OBC, the OBC itself and its extensive appendices can be found on the right hand side of this page.
The arguments for moving forward with this project are compelling from both an environmental and economic point of view. Disposal to landfill is the least favourable waste management option, due to the associated greenhouse gas emissions and impacts on climate change, and moving away from landfill is a fundamental principle of the Integrated Waste Strategy for Leeds.
Leeds City Council's strategy includes targets for achieving recycling levels in excess of 50% of household waste by 2020. However, achievement of this target will still leave an estimated 180,000 tonnes of non-recycled (or residual) waste for processing. No major UK city, nor the Government itself, is relying upon residual waste being eliminated. There is unity on the need to avoid landfill, and this is the basis for the development of a treatment technology solution.
It is, of course, possible that we may exceed our recycling targets but the proposed procurement strategy will make sure we have the flexibility to accommodate reduction and recycling performance above targeted levels.
Following approval of the Expression of Interest for PFI credits, the council has now submitted its OBC, with Defra willing to reserve PFI credits of a minimum of 50% of the relevant capital investment value of the residual waste treatment project (equivalent to £63.05 million).
The Government requires the council to develop its OBC around a reference technology, against which costs can be evaluated, and a reference site within the council's ownership or control.
As a result of the options appraisal completed by the council in 2005, Energy from Waste was identified as the reference technology for inclusion in the OBC. However, it is acknowledged that some alternative technologies have gained credibility since the completion of the options appraisal, and the council will therefore ensure that there is full opportunity for a range of solutions to come forward during procurement.
The council has also identified a short list of suitable sites for residual waste treatment facilities following completion of a major, city-wide site selection study based on national, regional and local planning guidance and criteria. These sites have now been identified within the 'preferred options' stage of the Aire Valley area action plan, which was approved by Executive Board on 11 September 2007.
The OBC sets out details of the proposed procurement strategy and objectives, and the anticipated timescales for project delivery. The proposed approach to procurement, consistent with DEFRA's advice, is that the council adopts the principle of a neutral stance on both technology and sites, in order to encourage competition and ensure the most environmentally sustainable solution is identified.