[Reposted from July 2011] NLWA plans new Edmonton incinerator - and it DOES have a 'Plan B'

The 'North London Waste Authority' Confidential Minutes, below (from an NLWA meeting held at about the time as the 'Pinkham Way exhibitions') include:

"... A further Member queried why the option of building a new Energy from Waste plant at Edmonton had been excluded from further consideration.

"The Procurement Director said that there were a number of considerations, including the likely cost of modelling such an option.

"The substantive issues were that there was no prospect of a good quality combined heat and power solution at Edmonton for all the energy that the Authority’s solution might generate, and it was highly unlikely that a large mass burn incinerator would be deliverable.

The Authority was, however, considering whether a smaller plant could be delivered at Edmonton, potentially associated with half the Solid Recovered Fuel (SRF)."

Presumably that means 'half the SRF tonnage from the whole NLWA area of seven boroughs', since that is the output of the new Edmonton 'Mechanical and Biological Treatment' (MBT) plant, on the same site.

By the way... it would be a new incinerator. No doubt it would be given a 'New-Tech' name, like 'gasifier', 'recovery' or 'sustainable energy-from-waste', but it would be an:

• ash-producing, 
• resource-wasting, 
• inefficient-energy-producing, 
• recycling-restricting 

incinerator.

Building a new-style incinerator next to an MBT plant at Edmonton is considered by the NLWA to be a good idea. Where else might that thinking be applied, we wonder?

And another interesting quote (not the one about Brian Coleman wanting to charge for 'Freedom of Information Act' requests) is:

"... A number of preparatory steps had been undertaken in relation to work on alternatives to the procurement. These were listed."

The technical term for that is a "Plan B".

Why new-style incineration

(with its new names) is a bad idea

EXEMPT INFORMATION – NOT FOR PUBLICATION

North London Waste Authority - Wednesday, 9th February, 2011

MINUTES PART II

The following minutes are ‘not for publication’ as they are considered to contain exempt information within the meaning of Category 1 of Schedule 3A to the Local Government Act 1972 (as amended), ‘Information which relates to an individual’, Category 3 of Schedule 3A to the Local Government Act 1972 (as amended), ‘Information relating to the financial or business affairs of any particular person, including the authority holding that information, and not required to be registered under various statutes’ and Category 5 of Schedule 3A to the Local Government Act 1972 (as amended) ‘Information in respect of which there is a claim to legal professional privilege’.

The reasons why the public interest favours withholding the information are that: the release of such information could constitute or facilitate an unwarranted interference with individuals’ privacy; the release of such information would prejudice the Authority’s conduct of a commercial operation OR because the disclosure of the information is likely to prejudice the commercial interests of the Authority and organisations engaged in commercial activities as the information is related to commercial activities that are conducted in a competitive environment; and the release of such information could prejudice the safeguarding of openness in all communications between client and lawyer and the Authority’s ability to ensure access to full and frank legal advice.”

The Proper Officer has considered all the circumstances and is of the view that on balance the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

13. PRIVATE MINUTES

RESOLVED –

THAT the private minutes of the ordinary meeting of the Authority held on 23 September 2010 be approved and signed by the Chair as a correct record.

14. GOVERNANCE OF LONDONWASTE LTD

Members consider a report by the Managing Director.

David Sargent, Managing Director of LondonWaste and Matt McGeehan, Finance Director LondonWaste attended the meeting and introduced the report.

Members noted LondonWaste’s strong financial performance, particularly in the final quarter.

RESOLVED -

(i) THAT the performance of LondonWaste Ltd, particularly the profitability and dividend information which is contained in the quarterly reports (found at Appendices 1 and 2 to the report), be noted;

(ii) THAT the appointment of Trustees to the Board of Trustees of the LondonWaste Ltd pension scheme and the intention to seek a professional trustee during the first quarter of 2011 be noted;

(iii) THAT the advice being sought in relation to LondonWaste’s status as an inward-facing company be noted;

(iv) THAT the activity of the Shareholder Group be noted;

(v) THAT the letter from the Chairman of LondonWaste Ltd (found at Appendix 3 to the report) be noted;

(vi) That the minutes of the LondonWaste Board meetings (found at Appendix 4 to the report) be noted.

ACTION BY: Procurement Director

15. PROGRESS TOWARDS AN INTER-AUTHORITY AGREEMENT

Members considered a report by the Managing Director.

Some Members were not willing to formally commend the Inter-Authority Agreement (IAA) principles to constituent boroughs, as this was something which Members would need to consider within their own Boroughs. It was agreed that this recommendation should not be taken forward.

A Member stated that it would be helpful for Boroughs to provide their feedback on the IAA principles before the Member Briefing on 23 March 2011. He stated that close working was needed between Boroughs and the Authority to resolve any sticking points. The Managing Director informed Members that a meeting had been set up with Borough technical officers to discuss these issues.

The Chair reiterated the importance of getting agreement on the IAA and the principles in the near future.

RESOLVED –

(i) THAT the progress in each Borough towards the agreement of the IAA principles and the signing of a legally binding IAA be noted, including the issues that need to be addressed prior to signing;

(ii) THAT the Principles be agreed in relation to the NLWA’s needs;

(iii) THAT authority be delegated to the Clerk to agree the final wording of the IAA and its signing.

ACTION BY: Managing Director

16. PROCUREMENT UPDATE REPORT

Members considered a report by the Procurement Director.

The Procurement Director updated Members on matters arising from the previous meeting:

• Advice relating to the London Living Wage and the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) had slipped due to the cancellation of the Private Finance Initiative (PFI) credits but it was expected that this could be brought to the April meeting.
• The study by London Remade Solutions into market development opportunities associated with the use of recyclates had been delayed due to some commercial issues. However, it was hoped that these had been overcome and that the outcome of the study could be reported in April.

The Procurement Director updated Members on the following matters which had occurred since his report had been drafted:

• The Authority had issued a press release confirming that judicial processes would not be pursued in relation to the removal of the PFI award.
• Ten bidder solutions had been received, which showed that the Authority had been successful in maintaining bidder confidence.
• A number of preparatory steps had been undertaken in relation to work on alternatives to the procurement. These were listed.
• The press and key local stakeholders had been briefed on the Pinkham Way planning consultations.
• The Authority had been dealing with a large volume of Freedom of Information (FOI) requests. This was putting pressure on the Authority and was affecting how quickly it was able to respond.
• Officers had discussed risks associated with costs and affordability with the Procurement Board, which included two Borough Directors of Finance. There was helpful guidance from that Board that despite short term cost pressures on Borough budgets it was unlikely that long term value for money would be sacrificed for the sake of those short term financial pressures.
• Further advice regarding the procurement, or any alternative procurement, would be brought to the Authority’s April meeting.

A Member asked whether the Authority was fully exploiting its ability to recover some of the costs incurred under Freedom of Information. The Procurement Director said that he would investigate any opportunity to do this. A different Member commented that it would be helpful if, wherever possible, the issues surrounding the Pinkham Way site could be resolved before the planning process.

A further Member queried why the option of building a new Energy from Waste plant at Edmonton had been excluded from further consideration. The Procurement Director said that there were a number of considerations including the likely cost of modelling such an option. The substantive issues were that there was no prospect of a good quality combined heat and power solution at Edmonton for all the energy that the Authority’s solution might generate and it was highly unlikely that a large mass burn incinerator would be deliverable. The Authority was, however, considering whether a smaller plant could be delivered at Edmonton, potentially associated with half the Solid Recovered Fuel.

RESOLVED –

(i) THAT the report on the DEFRA decision to withdraw PFI credit support from the NLWA project and the Legal Advisor’s decision not to pursue a legal challenge be noted;

(ii) THAT the update on the dialogue and bid submissions in relation to the current procurement, including the oral update given at the meeting, be noted;

(iii) THAT preliminary advice on revisions to the timetable for the current procurement be noted;

(iv) THAT the proposed list of scenarios set out in the report that will be subject to further work be agreed and the arrangement of a Members’ Briefing on 23 March 2011 be noted;

(v) THAT the update on sites and planning work be noted;

(vi) THAT the actions taken to manage the 2010/11 procurement budget within existing approved sums and the proposed budget for 2011/12 be noted;

(vii) THAT the update on risk issues related to the procurement and associated activity be noted.

ACTION BY: Procurement Director

PRIVATE MINUTES END

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