THAT:

Subject to similar approvals being given by Worcestershire Council, in relation to (a), (b), (c) and (d) and having due regard to the technical assessment received from the technical advisers to the Councils in relation to the Energy from Waste proposal described in paragraph 8 of this report (the EfW proposal), and the Joint Municipal Waste Management Strategy, the Cabinet:

(a)                     Supports in principle the concept contained in the EfW proposal and the progression of the proposal to planning stage;

(b)                     Authorises the Director of Environment and Culture, in consultation with the Director of Resources and the Assistant Chief Executive (Legal and Democratic), to enter into negotiations with Mercia Waste Management Ltd (Mercia) and to prepare a potential variation (the Variation) to the existing Private Finance Initiative (PFI) Contract (the Contract) to give effect to the EfW Proposal for subsequent consideration by the Cabinet should planning permission be granted in respect of it;

(c)                     Agree that the reasonable costs of Mercia in bringing forward and pursuing the EfW proposalbe treated in the same way as other significant costs under the PFI contract in accordance with the current standstill arrangements should the costs prove abortive and no Variation agreed;

               and

(d)                     Receives a further report in due course to consider any recommended Variation to the Contract or at the earliest opportunity if it becomes apparent that Herefordshire’s contribution towards the indemnity may exceed £650,000, and that the Waste Advisory Steering Group receives monthly reports to include a rigorous approach to risk management.