PFI waste contractor to pay Leeds council undisclosed sum for performance failure

Recycling plant

Leeds City council has come to a financial agreement with its PFI waste contractor Veolia over targets the company has consistently missed since the facility opened.

The £450m energy recovery and recycling facility in Cross Green Leeds became fully operational in April last year. Under the 25-year PFI contract, it’s supposed to separate out for recycling 10% of the household black bin waste that it processes.

It achieved 1.3%.

What’s worse is that, according to a council report, there’s a high risk that the performance target is going to be missed again this year (2017-18).

So Veolia has offered the council an undisclosed sum* and the council in return has promised that it’ll waive its right to issue the company with a Performance Warning Notice (PWN) even if Veolia misses its targets again this year.

(two PVNs in a 24-month period and the council is within its rights to cancel the contract … unthinkable!).

Veolia are installing new equipment next month and have built a paper pulping facility that’s going to turn all the paper and card separated from the black bin waste into fibre, that they (Veolia) are hoping to find buyers for.

Not a great start.

According to the latest figures I’ve seen, the council will be making payments of over £31m for the waste facility over the first two tears of its operation (2016-18).

 

*the amount that Veolia is coughing up for its performance failure is being kept secret in an appendix to the report that’s not being published for reasons of “commercial confidentiality”. Maybe some Leeds councillor who’s into transparency can ask for the details to be published.

 

 

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One Response to PFI waste contractor to pay Leeds council undisclosed sum for performance failure

  1. Pingback: Ideas to tackle climate change in Leeds – a quick update | The Social Business

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