Loss of PFI credits halts plans for Leicester waste treatment plant

Leicestershire County Council has put plans on hold for a residual waste treatment facility following the loss of £86.6M of PFI credits, which has effectively made the project unaffordable.

The council had been working with bidders to create a new facility which would have dealt with up to 180,000 tonnes of household waste a year. But the withdrawal of government funding, plus proposed changes in national waste policy, means that it now makes more sense to explore alternative methods.

The council's cabinet member for waste management, Richard Blunt, said: "Since we embarked on this project, the economy has shifted and there are planned changes in national waste policy.

"The financial climate has put huge pressure on public spending and the loss of the credits adds considerable costs to the project. Officers have assessed different ways of taking the project forward, but the loss of the credits makes it financially unattractive to continue."

The council has published a report on the situation which recommends selling land at Interlink Business Park Bardon which it bought to support the project - this would be done when market conditions were judged to be favourable.

Maxine Perella



Waste & resource management
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