The controversial scheme to build an incinerator in Shrewsbury is going to cost £60 million – with taxpayers forced to help pay the bill.
The figure for plans to build an Energy Recovery Facility at Battlefield as part of a 27-year waste contract signed by Veolia Environmental Services in October came to light this week as part of a Chronicle investigation.
Although Veolia will pay all the capital costs up front, the company will be paid back by Shropshire Waste Partnership over the remainder of the contract – and SWP officials have admitted some of the money will be funded from the public purse.
The plans have attracted widespread opposition since they were first announced this autumn, with the Safe Waste in Shropshire Group being set up and more than 800 residents signing a petition opposing the proposed development.
Full planning permission for the site is expected to be submitted within the next 12 months.
Under the terms of the waste contract, SWP officials will receive £40.8 million from the government in private finance (PFI) credits, but will also use money from existing budgets, contributed to by taxpayers.
Veolia officials have pledged to pump £100 million into dealing with the county’s waste, and as well as the Battlefield ERF they will also be building new recycling centres in Oswestry and Bridgnorth and have already taken over the running of kerbside recycling collections.
Adrian Poller, director of Shropshire Waste Partnership, said: “We will pay Veolia a lump sum of around £20 million a year for the delivery of services, and while we use PFI credits to help pay this we are also using money pooled from the budgets of existing authorities.
“Even though Shrewsbury and Atcham Borough Council is not part of the SWP their residents are contributing towards this.”
Sylvia Herbert, press spokesperson for Veolia Environmental Services in Shropshire, said: “The proposed ERF at Battlefield is part of Veolia’s major capital investment programme in Shropshire.
“Depending on when it is built and the final specification, the ERF will cost around £60 million to build.”
Ioan Jones, chairman of the Safe Waste in Shropshire campaign group, said: “The cost of this project reinforces our view that there are less expensive options available.”
Exclusive by Peter Kitchen
PKitchen@shrewsburychronicle.co.uk
Special feature on page 14 of the Shrewsbury Chronicle, November 15, 2007 available to purchase from Chronicle House. Please ring 01743 248248.