To approve the deferral of the payment for the purchase of the Energy from Waste plant site in Hartlebury and provide an update on the outcome of the execution of joint waste PFI contract variation concluded in May 2014.

The Cabinet Member for Contracts and Assets introduced the report which refers to the deferral, until 2023, of the purchase of the Energy from Waste plant site in Hartlebury.  If deferred, the reserve would be retained and would reduce the need for the council to borrow. There has also been a new financial split between Herefordshire and Worcestershire which is based on tonnage and brings savings to the council.

The Head of Corporate Finance confirmed an improved position following financial negotiations and the savings gained based on the split.  The deferral would not change the council’s rights, but the payment would be reduced because of a reduction for the recycling site. It is therefore of benefit to the council to make the purchase at the end of the PFI agreement in 2023.

The Chair of the General Overview and Scrutiny Committee asked for assurance that this did not affect the recycling facility. The Director for Economy, Community and Corporate, confirmed that the Energy from Waste plant is separate from the recycling plant.

In answer to a question from the Group Leader of It’s Our County regarding the  Joint Working Arrangement summarised in the report, in particular relating to the desirability of Mercia extending the contract beyond 2018, the Head of Corporate Finance confirmed that there is the option to extend the contract by five years. She added that this element of the original PFI contract was not varied.

A request was made by the Group Leader of It’s Our County for a briefing paper on this matter.

RESOLVED:

That      (a)     the conclusion of the agreed joint waste PFI contract variation and associated joint working agreement be noted; and

(b)     the deferral, until December 2023, of the purchase of Herefordshire’s share of the Hartlebury waste site be approved.