Agenda Item No. 14(a)










Cabinet were apprised with details of an Interim Residual Waste Disposal Contract offer from Viridor Ltd in order for Cabinet to take a decision on entering into an interim contract with Viridor, in partnership with Cardiff City Council (CCC), Caerphilly County Borough Council, Monmouthshire County Council and Newport City Council, for this service.


Members were advised of proposed arrangements for haulage, treatment and / or disposal of residual waste during the interim contract 3 month commissioning stage.


Viridor’s solution for PG, which was based on a merchant energy from waste (EfW) facility at Trident Park, Cardiff, was presently being constructed. Under the current construction programme the facility would be able to start receiving waste (initially for hot commissioning) in September 2014, a year before waste could be delivered to it under the PG contract. 


Officers within the PG Partnership had recognised that there would be clear environmental and, potential financial benefits, of sending their residual waste to the facility from September 2014 and there was also the probable public expectation for the PG Councils to utilise the facility if it were available, rather than to continue sending their waste to landfill.


A full copy of the Viridor offer, including contract prices, was included in the Part II report, which followed later on this agenda.


The start date of the hot commissioning was not guaranteed as during this phase the facility was still under the control of the construction contractor "EPC Contractor", and the initial supply of waste during the hot commissioning phase was for the EPC Contractor to test that the plant was working well before it was handed over to Viridor.


If, during the Interim Contract period, Viridor could not accept waste at the plant, they would provide contingency disposal arrangements. Three sites had been identified and comprised two EfW facilities and a landfill site. Priority would be given to utilising any available capacity at the EfW facilities ahead of landfill and it was likely that if contingency arrangements kick-in, waste could, under the arrangement, be sent to all three facilities.


After the provisional offer was made by Viridor, an issue arose that some types of waste could not be delivered during hot commissioning because it did not meet the EPC Contractor’s defined waste criteria. This was predominantly material from HWRC sites and bulky collections that would need shredding prior to going through the plant. Shredding was not part of the commissioning contract.


Currently all the Council's residual waste disposal was contracted to Biffa Waste Services until 31 March 2016. It would therefore be necessary for the Council to agree terms for early part and total termination of this contract to allow the Council to enter into both the interim contract in September 2014 and the contract commissioning stage of the full PG contract in October 2015.


This was a matter for Executive decision


RESOLVED – T H A T the contents of the report be noted and be considered with the Part II report on this matter later on the agenda.


Reason for decision


For noting.



[View Minute of Part II Report]