A joint venture majority-owned by the waste management firm Shanks Group plc has reached financial close on a 25-year residual waste management contract in the UK valued at £750m (ca. €899m), Shanks announced on Monday.
The contract with the BDR Waste Partnership (Barnsley, Doncaster, Rotherham Metropolitan Borough Councils) involves the construction of mechanical-biological treatment (MBT) and anaerobic digestion plants with a combined capacity of 265,000 tonnes of "black bag" waste per year. Shanks is to operate the plants to be located at a site in Rotherham in South Yorkshire until 2040.
The contract will be executed by 3SE, a consortium of Shanks with Scottish and Southern Energy (SSE), which holds a 25 per cent stake in 3SE and will use half of the solid recovered fuel produced in the MBT for power generation.
The project is being funded under the Private Finance Initiative (PFI) funding system for public-private projects. 3SE was named preferred bidder for the project in April of 2011.