Agenda item

A verbal update will be given on the final stages of contract completion.

That the update be noted and WTI representatives be invited to attend a future meeting.

The Chief Executive provided a verbal update on the final stages of contract completion for the North Wales Residual Waste Project (NWRWP), following a recent meeting of the regional Joint Committee for the project.

Members were reminded of the aim to procure a modern, sustainable waste management solution for five of the North Wales local authorities which would help to meet challenging national recycling targets.  Commercial negotiations had concluded with contracts expected to be signed the following week.  Construction was due to start on the site in January 2017 and the facility to be fully operational by 2020.

The Chief Executive welcomed the positive support from the Welsh Government (WG) in subsidising 25% of the project which covered operations, gate fees paid by the Local Authorities, haulage contracts and the running of the waste transfer stations across the region.  Whilst negotiations had been finalised on the complex matter of gate fee charges, the uncertainty of foreign exchange rates remained a financial risk.  However, the current sterling position was showing a slight improvement and could reflect positively on the gate fee, depending on the timing of financial close of the project.  The Preferred Bidder, Wheelabrator Technologies Inc (WTI), had increased its number of waste management facilities across the UK and would contribute to a local community benefits fund.

The Chief Executive suggested that the Committee may wish to invite WTI representatives to a meeting in the first quarter of the New Year to provide more information on the project.  A detailed report on progress and timescales for the project would also be submitted.

Councillor Paul Shotton welcomed the update and opportunities for local businesses.  He referred to the potential for a breeze-block factory on the site to use the bottom ash produced by the facility.  Mr. Steffan Owen, Project Manager, explained that bottom ash would contribute towards 7% of recycling performance and would be taken away by an external company for a number of uses.  Whilst the suggestion of a conversion factory may be an option for the area, it could not be accommodated on the site itself.  In response to comments on the bidder’s day event, the Project Manager advised that around 200 companies had expressed an interest in the project.

When asked about use of rail transport at the site, the Chief Executive said that this option had been explored but was considered unviable due to the revenue costs.  Road haulage was the immediate solution, however, rail remained an option for future consideration.

Councillors Ian Dunbar and Dennis Hutchinson raised concerns about the impact of road haulage along the Deeside corridor.  The Project Manager said that the impact of the estimated 30-40 vehicles per day would be minimal and that there was provision in the contract to define specific routes for haulage contractors, with penalty clauses.  The Chief Executive provided explanation on the gate fee which had been negotiated on the basis of a minimum of 175K tonnes of waste, including a minimum 90K tonnes from the partnership with the remainder from other sources.  The total amount of waste was relatively minor in comparison to other facilities in the UK.  Comments on improving the road and rail network linked to the longer-term growth strategy.

In response to comments by Councillor Andy Dunbobbin on the A494 consultation, the Chief Executive spoke about the need to meet criteria and the expectation for WG investment which would benefit the Northern Gateway.  In respect of the NWRWP, he gave a brief summary of the site selection process where an alternative site had been ‘ruled out’ due to it not being made available.

When asked by Councillor Haydn Bateman about the use of heat from the facility, it was explained that the use of hot water and steam for use elsewhere was being explored.  The generation of electricity for sale to the National Grid would provide the partnership with a share of income.

The Chairman thanked the officers for the update and agreed with the suggestion for WTI representatives to attend a future meeting.

RESOLVED:

That the update be noted and WTI representatives be invited to attend a future meeting.