Waste firm bags billion pound contract
Waste industry giant Veolia is celebrating winning a contract worth around a billion pounds.
The company says the value of its 25-year private finance initiative (PFI) contract with Staffordshire County Council could top a billion.
It is factoring in revenue from the council for treatment of third party waste and sale of electricity from energy-from-waste.
Philip Atkins, Staffordshire County Council leader, said: "This is a landmark event for the county council as it has signed the biggest ever contract in its history.
"Veolia went head to head against some serious competitors to win this contract. It was able to offer maximum value and maximum quality to the taxpayer which is our number one priority.
"The contract will save Staffordshire taxpayers more than £250 million over the next 25 years.
"This contract is all about protecting taxpayers from escalating costs and protecting the environment from mounting piles of rubbish."
The contract will see the company running an energy-from-waste plant on an industrial estate on the outskirts of Wolverhampton.
It will process some 300,000 tonnes of waste annually mainly from Staffordshire but also some from Sandwell, Walsall and Warwickshire.
The plant is expected to export in excess of 23 megawatts to the National Grid - enough to power 32,000 homes. It is expected to be complete in 2013 and create some 40 long-term jobs.
Denis Gasquet, chief operating officer of Veolia Environnement and chief executive officer of Veolia Environmental Services, said: "This decision reflects our proven ability to deliver a complete PFI package based on our development and technology expertise.
"We have established a strong presence in Staffordshire and will be working closely with the county council to develop the new facility in line with its environmental objectives and maximise landfill diversion."