Southwark signs £665m waste deal

14 February 2008

SOUTHWARK Council has singed a private finance initiative (PFI) contract with Veolia Environmental Services in a deal worth £665 million.

Veolia announced yesterday that it had signed up for the 25-year partnership. Last month it provisionally agreed to the deal.

Veolia already holds over five waste-collection and disposal contracts in London.

Under the deal, Veolia will take over waste collection and disposal in Southwark from this week. This forms part of a broader strategy that covers the minimisation of waste, transfer, composting and pre-treatment.

Southwark aims to increase its recycling rate to 50pc by 2021.

Veolia will build a state-of-the art waste and recycling centre on the Old Kent Road. It will contain the company's first UK MBT plant, which will be able to handle 87,000 tonnes of residual waste each year.

This plant will remove recyclables from the waste before stabilising it to produce a fuel that will be sent to the South East London Combined Heat and Power Plant.

The site will also include a materials recycling facility to deal with up to 85,000 tonnes of dry recyclables yearly, as well as a household waste and recycling recovery centre.

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