Extension to the interim waste contract approved
Today, 9 April, members approved a proposal that gives authority for the interim waste contract to be extended for three years. The this is the second extension of the contract, with a revised expiry date of March 2028.
What is the interim waste contract?
Our 25-year waste Private Finance Initiative (PFI) agreement will be extended by a total of five years, the maximum allowed, and a deed of variation would be developed. The PFI was signed in 1998 and was originally extended for two years in March 2023 for interim arrangements. These interim arrangements are delivering the expected outcomes of recycling more plastics from green bins, maintaining landfill diversion of at least 85%, and improving the condition of the facilities. The contract regularly exceeds this diversion target and has in several months approached 100%.
Why are we extending the contract?
Now approved, the additional three years will allow for more time for statutory service changes to be brought in at a national level alongside any funding which will be made available from government. It also allows for time to understand the impacts of any national policy changes on waste composition in the borough.
Finally, the interim waste contract extension gives more time for the Huddersfield District Energy Network project to be integrated within the current contract, as well as being used to prepare and procure a new contract that best fits the requirements for Kirklees.
David Shepheard, Strategic Director for Growth and Regeneration for Kirklees Council, said:
“There is still much uncertainty around Central Government legislation which will affect statutory recycling services, and without clarification we can’t invest or improve our recycling. Our existing contractual arrangements with the incumbent supplier are lower than the potential costs and risks of procuring whilst there remains uncertainty surrounding the unresolved issues of national obligations.
“This extension to the contract will allow for more time for clarification from the government around schemes such as Environment Bill; Simpler Recycling; Extended Producer Responsibility (EPR); Deposit Return Scheme; and the Emissions Trading Scheme, while allowing us to benefit from the current cost-effective interim contract.”