Leicestershire shortlists two for £137m PFI deal

Leicestershire County Council has shortlisted two companies to compete for its £137m private finance initiative waste contract.

Veolia Environmental Services (VES) and Osiris, a consortium made up of United Utilities Waste Management, Costain Engineering and Construction and John Laing Investments,  are the final bidders hoping to manage Leicestershire’s residual household waste, knocking Biffa out of the race.

The council wants to build a waste treatment facility capable of handling 180,000 tonnes of waste by 2040. Both companies have submitted their plans for the area, with VES proposing an energy-from- waste facility. Osiris has proposed a mechanical treatment facility, which will produce refuse-derived fuel to be used to power a gasification facility which will be built on the same site.

Both facilities would be situated on a council-owned Bardon site, generate electricity and be capable of producing heat.

Tony Kershaw, council cabinet member for waste, said: “We will now meet with the remaining bidders and continue our discussions to achieve the best solution for Leicestershire.”

The council expects the facility to open in April 2015.