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Waste PFI Credits abolished – challenge and opportunity

3 November 2010

It was a surprise that the Comprehensive Spending Review (CSR) abolished PFI credits for several waste PFIs. PFIs will now have to proceed without this direct government financial support.

Longer term, this raises the question about how government targets to divert waste from landfill can be met given the funding gap that many local authorities relied on these credits to bridge.

The shape of waste projects in this new environment remains unknown. But two things remain clear. The environmental pressures and targets facing the UK are not going away and, to deal with these issues, private sector investment will be needed.

It may be that merchant facilities and smaller, more innovative diversion technologies will start to replace the large scale council – contractor waste management contracts of recent years.

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