Cabinet to consider refinancing deal for Energy from Waste facility
Cabinet are being asked to decide if they want to take advantage of an opportunity to partially refinance the Energy from Waste facility in Great Blakenham.
Suffolk County Council’s Cabinet are being asked to decide if they want to take advantage of a further opportunity to partially refinance the Energy from Waste facility in Great Blakenham.
The refinancing of the contract, if it goes ahead, could result in an anticipated saving of £10.4 million over the remaining lifespan of the contract until 2035.
This isn’t the first time the council has taken advantage of a refinancing deal for the contract. Back in 2016 it entered into a refinancing agreement for £37.8 million of the facility’s capital construction cost.
Mindful of the budget pressures facing the council, discussions have been taking place with the Department for Environment, Food and Rural Affairs (DEFRA) and SUEZ, the company responsible for the building, financing and operation of the facility to see whether the proposal can go ahead. The new proposal is for a further refinancing arrangement of £10.2 million.
This second refinancing proposal could reduce the gate fee per tonne for our waste and provide the county council with a net saving of around £10.4million over the rest of the contract, currently due to end in 2039.
Suffolk County Council’s Cabinet Member for Waste, Paul West, said:
“It is only right that in the light of the financial pressures facing the council that we seek innovative ways to make savings. The Cabinet is always looking at ways in which we can be more commercial in how we manage our contracts.
“This opportunity to take advantage of a second refinancing agreement on the contract for the Energy from Waste facility offers the council the chance to save £10.4 million over the next 21 years, without impacting on services that we provide for residents.
“Discussions with our long-term partners SUEZ and DEFRA leading up to this proposal have been positive and we now need to consider if we are happy to explore the savings on offer.”
Suffolk County Council’s Cabinet will consider the proposal during their meeting on Tuesday 4 December 2018.