SITA UK Ltd. (SEV), a unit of the French water company Suez Environnement, signed a contract to build a 140 million-pound ($216 million) waste-to-energy plant in Cornwall after years of delays due to local opposition.
The U.K.-based waste management company will construct and operate a plant with a capacity for 240,000 tons of waste a year for Cornwall Council as part of a revised 30-year contract to treat its household waste, SITA said today in a statement.
SITA signed a public-private partnership contract in 2006 to help avoid landfill waste in the region. Local authorities declined planning consent for the waste plant in 2009, which delayed the project until the U.K.’s Court of Appeal upheld a favorable decision from the government in March 2012.
The delays required the entire agreement to be re-priced and new financing to be arranged, according to James Rossiter, a spokesman for SITA. Financing for the 16-megawatt plant in St. Dennis that will be operational in 2016 and the improvement of other waste facilities in the country was secured last month.
The European Investment Bank and other lenders will provide 182 million pounds in senior debt, Ashurst LLP, the legal adviser for the banks, said March 21. The commercial banks comprise The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Corporate Bank Ltd. and Landesbank Hessen-Thueringen Girozentrale, according to SITA. SITA, Itochu Corp. (8001) and Lloyds Banking Group Plc (LLOY) will provide the equity.
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