Bracknell

A new £600 million waste contract aimed at further reducing reliance on landfill while boosting recycling rates has been signed by three local authorities and their private sector waste management partner.

The 25-year joint waste Private Finance Initiative (PFI) between Reading Borough Council, Bracknell Forest Borough Council and Wokingham District Council - known as the RE3 Waste Partnership - aims to deliver a long-term sustainable solution to dealing with waste produced by households in three council areas.

RE3 is responsible for disposing of residents' waste once it has been collected by the councils. There will be no change to the collection of residents' refuse and recycling - including the alternate bin collection scheme which was introduced in Bracknell Forest in October.

Once new sorting facilities are in place, Bracknell Forest Borough Council hopes that residents will then be able to put all their kerbside recycling in the blue wheelie bin.

Waste Recycling Group (WRG), the UK's leading waste management services and energy recovery company, has been chosen by the RE3 Waste Partnership to deliver the new waste strategy.

The contract will see new waste management facilities constructed at the Smallmead site in Island Road, Reading, and the site in Longshot Lane in Bracknell.

The Smallmead site will feature a redeveloped indoor civic amenity site, a recycling plant and a waste transfer station. Longshot Lane in Bracknell will also be redeveloped to include an improved civic amenity site and waste transfer facility. The contract will include greater capacity for recycling and composting of green waste and energy from waste.

The contract would also see the creation of a Joint Waste Disposal Board between the three local authorities, with membership of two councillors per authority.

Cllr Mrs Mary Ballin, Bracknell Forest Borough Council's Executive Member for Planning and the Environment, said: "The RE3 project has been designed to provide better recycling facilities for our residents and improved waste disposal arrangements in all three authorities.

"The three councils have joined up in partnership to realise the economies of scale which can be achieved by working together. As well as offering good value for money for council tax payers, RE3 promises to make a substantial difference to the impact our waste has on the environment."

Ben Bradshaw, Defra's Local Environment Minister and Parliamentary Under Secretary, said: "It is heartening to see this PFI project reach contract close so soon after Cornwall County Council.

"This is an inspiring example of how local authorities can work together towards a common goal, securing greater value for money for their residents in the process.

"This is a sector which has been perceived as difficult in the past, but Defra has been working hard with the market to understand private sector concerns and putting initiatives in place to address those concerns wherever possible. That work is beginning to bear fruit and I look forward to seeing many more of these projects close in the coming months.

"The waste sector is fast becoming a major sector for PFI and it is good to see an increase in the interest being shown by the banking and business community. The success of this sector will be key in delivering the countries EU landfill directive targets in the coming years."

In order to help achieve local authority targets on landfill, two short listed contractors were invited to submit their proposals as part of the project which would enable the councils to minimise the amount of waste produced, significantly increase levels of recycling and composting and to divert waste from landfill.

Waste Recycling Group (WRG) were chosen as the preferred bidder. The contractor's bid is to focus investment in the creation of a new waste management park at the Smallmead site in Reading, and at Longshot Lane, Bracknell.

Jim Meredith, Chief Executive of Waste Recycling Group, said: "We were delighted when we were selected to help deliver a robust and sustainable waste management strategy through this inspirational partnership of the three local authorities.

"Now we are looking forward to getting to work in order to meet and exceed the ambitious recycling and landfill diversion targets that the people of Reading, Bracknell Forest and Wokingham have set themselves."

The Smallmead site would come complete with a new state of the art materials recycling facility at its heart. The new site would also include a new waste transfer station and reprovision of the civic amenity site. WRG propose to support the waste minimisation objectives of the partnership through education and awareness initiatives delivered through dedicated staff and provision of a visitor and education centre at both waste management parks.

It is anticipated that the new site will allow all three local authorities to achieve high levels of recycling and composting performance over a 25 year period while achieving lower landfill diversion targets set by Central Government.

The Waste Management Partnership was established following an earlier period of consultation with local people and communities in all three local authority areas entitled `What shall we do with our rubbish'.

All three councils also took into account the views of a user group which had been working on the project since the start of procurement. The user group was made up of community representatives who had considered key aspects of the proposals received to ensure they would meet the needs of local people.

The project has been named RE3, representing the partnership between the local councils, the private sector and the public, and reinforcing the three key messages: reduce, reuse, recycle.

Ian Higham of technical advisers Jacobs said: "One of the largest and most diverse providers of professional technical services, Jacobs acted as technical advisers to the Councils throughout the PFI project.

"Given the current urgency to address global climate change, Jacobs are pleased to have been associated with this project which will make a significant contribution to reducing the environmental impact associated with the management of waste generated within the three council areas."

Stephen Smith of Ernst & Young, who acted as the financial advisor to the councils throughout the procurement, said: "We have achieved an innovative, financially efficient solution utilising a combination of existing regional facilities and new build infrastructure funded by bank debt, representing value for money for the Councils and local taxpayers."

Michael Grimes of Eversheds international law firm, which acted for all three councils, added: "This will be the third waste PFI in England to close in recent months. This deal was particularly complex due to the use of merchant energy from the waste facility and the need to construct a major facility on the site of the landfill.

"However, Evershed's team has extensive experience in waste management contacts and was able to draw on this previous experience to ensure that the deal process ran smoothly."

Bracknell Forest Borough Council