{"id":7755,"date":"2014-05-13T15:57:00","date_gmt":"2014-05-13T14:57:00","guid":{"rendered":"http:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=7755"},"modified":"2016-09-07T16:26:14","modified_gmt":"2016-09-07T16:26:14","slug":"incredible-turnaround-as-600m-waste-project-scrapped-at-cost-to-council-of-30m","status":"publish","type":"page","link":"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=7755","title":{"rendered":"Incredible turnaround as \u00c2\u00a3600m waste project scrapped at cost to council of \u00c2\u00a330m"},"content":{"rendered":"<p><span style=\"color: #000000;\">Norfolk County Council voted (by 48 to 30) in early April during an unusual meeting where it was decided that a huge planned waste management scheme, incorporating a \u00e2\u20ac\u02dcwaste to energy\u00e2\u20ac\u2122 plant and an already agreed \u00c2\u00a3600m waste contract with Cory Wheelabrator, was to be axed just three years into its 25 year term.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">Unfortunately, this meant a substantial severance cost for the council, including:\u00c2\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">\u00c2\u00a320.3m in capped compensation to Cory Wheelabrator<\/span><\/li>\n<li><span style=\"color: #000000;\">\u00c2\u00a31.6m in contractor public inquiry costs<\/span><\/li>\n<li><span style=\"color: #000000;\">\u00c2\u00a38.26m in exchange rate and interest rate related costs<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">The 25 year contract was awarded back in 2011, but substantial opposition then arose and the planning application for the \u00e2\u20ac\u02dcenergy from waste\u00e2\u20ac\u2122 plant required to complete the contract was held for review by the Government. A planning inquiry was held in Spring of last year and the Communities Secretary Eric Pickles reputedly then suggested a decision would be made on or before 14 January.<\/span><\/p>\n<p><span style=\"color: #000000;\">No decision has yet been forthcoming, which has acted to erode the estimated benefits the project was expected to provide. Specifically, the Council elaborated on their website:\u00c2\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\"><em>\u00e2\u20ac\u0153When the contract was signed, savings of over \u00c2\u00a3250m were guaranteed over its 23 years, compared to landfill.<\/em><em>\u00c2\u00a0<\/em><\/span><\/p>\n<p><span style=\"color: #000000;\"><em>\u00e2\u20ac\u0153The report to Council and Cabinet said that the Secretary of State&#8217;s failure to make a decision was costing around \u00c2\u00a3140,000 a day, and by June the projected savings would have disappeared. The escalating cost of continuing delay follows the Government\u00e2\u20ac\u2122s decision last November to withdraw Waste Infrastructure Grant worth \u00c2\u00a3169m over the lifetime of the contract.\u00e2\u20ac\u009d<\/em>\u00c2\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">Thus a combination of Defra withdrawing their<\/span> funding for waste <span style=\"color: #000000;\">allocated for Norfolk and severe delays in Government decision making meant that this scheme drifted into economic obsolescence and, ultimately, termination fees became more viable than pursuing the project to fruition.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">The local authority\u00e2\u20ac\u2122s Cabinet has agreed that the termination costs should be met through the use of a contingency fund (\u00c2\u00a319m), under-spend in 2013\/14 (\u00c2\u00a33m) and general reserves (\u00c2\u00a38m) on the expectation that steps will be taken to replenish those reserves. The Cabinet is reported to be intending to consider the various options at a meeting in May.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">Interestingly, a report last December by Jonathan Acton Davis QC of Atkin Chambers\u00c2\u00a0did clear the council and officers of taking undue risk\u00c2\u00a0when entering into the contract, though some will argue that \u00c2\u00a330m worth of costs now stand testament to the idea that they may have been rash when plunging into such a decision without first securing at least outline planning permission.\u00c2\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><a title=\"PropertySurveying UK\" href=\"http:\/\/www.propertysurveying.co.uk\"><strong>www.PropertySurveying.co.uk<\/strong><\/a><\/p>\n<p>SRJ \/ LCB \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a0 \u00c2\u00a023\/04\/14<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Norfolk County Council voted (by 48 to 30) in early April during an unusual meeting where it was decided that a huge planned waste management scheme, incorporating a \u00e2\u20ac\u02dcwaste to energy\u00e2\u20ac\u2122 plant and an already agreed \u00c2\u00a3600m waste contract with Cory Wheelabrator, was to be axed just three years into its 25 year term.\u00c2\u00a0 Unfortunately, &hellip; <a href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=7755\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Incredible turnaround as \u00c2\u00a3600m waste project scrapped at cost to council of \u00c2\u00a330m&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"footnotes":""},"folder":[],"class_list":["post-7755","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Incredible turnaround as \u00c2\u00a3600m waste project scrapped at cost to council of \u00c2\u00a330m - Property Surveying NEWSLETTER<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=7755\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Incredible turnaround as \u00c2\u00a3600m waste project scrapped at cost to council of \u00c2\u00a330m - Property Surveying NEWSLETTER\" \/>\n<meta property=\"og:description\" content=\"Norfolk County Council voted (by 48 to 30) in early April during an unusual meeting where it was decided that a huge planned waste management scheme, incorporating a \u00e2\u20ac\u02dcwaste to energy\u00e2\u20ac\u2122 plant and an already agreed \u00c2\u00a3600m waste contract with Cory Wheelabrator, was to be axed just three years into its 25 year term.\u00c2\u00a0 Unfortunately, &hellip; 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