Balfour Beatty Wins £500m Waste Plant Contract

Friday, 16th December 2011
    Balfour Beatty has been appointed preferred bidder for the £500m Gloucestershire Residual Waste Project in joint venture with Urbaser to build and run an incinerator to rid Gloucestershire of its rubbish over the next 28 years beating rival Complete Circle – a consortium of John Laing, Keppel Seghers and Shanks.   The consortium will now work up plans as preferred bidder with Gloucestershire County Council to build a big incinerator plant at Javelin Park, near junction 12 of the M5. The council expects to sign a contract with UBB in six months to allow construction to start in 2013.   The project will be undertaken by a 30/70 joint venture between Balfour Beatty and Urbaser. Balfour Beatty will be involved in the design and construction of the facility. The facility will then be commissioned and handed over to Urbaser to operate from late 2015 onwards.   The energy-from-waste facility will divert more than 91% of Gloucestershire’s residual municipal waste from landfill. The facility is estimated to generate 116,000MW hours of electricity a year, which is sufficient to power more than 25,000 homes.   Balfour Beatty will invest 30% of the required equity in the project, approximately £13m, and design and build the facility which is expected to reach financial close in the second half of 2012 and be handed over to Urbaser to operate from late 2015 onwards.   Balfour Beatty chief executive Ian Tyler said: “We are delighted to have been selected as preferred bidder for this long-term contract in the growing energy-from-waste sector. The facility will improve Gloucestershire’s waste infrastructure and make a major contribution to diverting more waste away from landfill.”