Councils Terminate 25-Year PFI Contract And Take Over MRF Operations

Lancashire County Council and Blackpool Council have terminated a £2bn, 25-year PFI contract just three years into the deal, announcing they have taken over the facilities and operating company.

The two councils have taken over ownership and responsibility for running the MRFs at Thornton (pictured) and Farington after the 25-year contract with Global Renewables Lancashire Limited (GRLL) was terminated with the mutual agreement of the company, its shareholders and partners.

GRLL developed the sites under a 25-year contract funded through the Private Finance Initiative (PFI).

By restructuring the financing for the sites, the councils say they will jointly save more than £12m per year over what would have been the remaining 22 years of the
 contract.

David Borrow, Lancashire County Council – “This agreement means both sites will continue to deliver a hugely important service for people across Lancashire, while the new funding arrangements contribute significantly to the £300m of savings the county council needs to make by 2017/18″

The two councils have also taken over ownership of the operating company Global Renewables Lancashire Operations Ltd (GRLOL), retaining the employees at the plants.

The councils said that it was always intended that at some point control of the plants would return to them.

David Borrow, deputy leader of Lancashire County Council, said: “This agreement means both sites will continue to deliver a hugely important service for people across Lancashire, while the new funding arrangements contribute significantly to the £300m of savings the county council needs to make by 2017/18. It is a very good deal for the people of Lancashire.”

Amy Cross, Blackpool Council’s cabinet member for streetscene and the environment, said: “In Blackpool, like in Lancashire, we are a proactive authority when it comes to recycling and disposing of our waste correctly.

“We’re pleased that this deal will allow us to maintain our current arrangements and continue to work towards improving recycling rates in the town.”


 

Send this to a friend