The North London Waste Authority acquires SITA UKs share in LondonWaste

The North London Waste Authority (NLWA) took a critical step forward in its procurement process today by agreeing with SITA UK to acquire its 50 per cent share in LondonWaste.

The NLWA,  the country's second largest waste disposal authority, will become a 100 per cent share holder in LondonWaste from December 2009, subject to due diligence work being completed.

LondonWaste currently provides the waste disposal service for the municipal waste generated in seven north London boroughs, including running the existing energy from waste facility at Edmonton. It was established in 1994 as a 50/50 joint venture between the NLWA and SITA UK and in 2008 had a turnover of £84 million.

Land and key facilities such as the energy from waste and compost plants will transfer into the NLWA's ownership, whilst the NLWA's 50 per cent share in the Polkacrest clinical waste business will transfer to SITA UK through this landmark development.

The energy from waste plant is a key facility and it will now be used as an interim solution for managing the waste from the seven boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest whilst the new facilities are built and the contracts for running them are procured.

Cllr Clyde Loakes, Chair of the NLWA, said: "Today's announcement is good news for all concerned. We are looking to LondonWaste to continue to provide a service as we secure a new contract and the investment in new facilities essential to meeting our ambitious plans for recycling half the waste that north London produces and significantly reducing the amount of waste that goes to landfill. We will now be able to look to using land at the Edmonton site in our future plans, rather than needing to develop a new site in the Upper Lea Valley area.

"We expect that a future contractor on waste services will acquire LondonWaste at the start of a new contract and that offers a good future for current LondonWaste employees as well as allowing the Authority to develop a very attractive bidding opportunity. In turn, we expect that to translate into a significantly better outcome for local taxpayers."

David Palmer-Jones, CEO of SITA UK, said: "LondonWaste has been a highly successful public-private partnership and we have been proud to serve north London for the past 15 years. Together we have provided an excellent service and investment to upgrade facilities.

"We understand the importance of this facility to the NLWA's procurement process and are pleased that the close partnership between the NLWA and SITA UK has enabled us to come to an understanding which facilitates the NLWA's plans for the future. We will continue to take a keen interest in north London including NLWA's proposed procurement which we wish to be a part of."

As a result of today's announcement the NLWA will be refreshing its Outline Business Case (OBC) which it originally submitted to Government in May. The OBC is an application for financial support, under the Private Finance Initiative, to help pay for investment in modern waste treatment facilities for north London.

The Authority plans to submit the refreshed OBC in December and it will be available on the website, www.nlwa.gov.uk/procurement, at the same time.

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