Eversheds advises councils on variation of PPP involving energy-from-waste plant

Eversheds has advised Worcestershire County Council and Herefordshire Council on the variation of their £926m waste public-private partnership (PPP) by which the councils will fund the procurement by Mercia of a 200,000-tonne-per-annum energy-from-waste plant.

The councils varied their 25-year waste PPP contract with Mercia Waste Management to reflect the contractor’s proposals to develop an energy-from-waste plant at Hartlebury. The project has an innovative financing structure, with the councils using prudential borrowing to lend project finance monies to Mercia.

The variation is the culmination of many years of detailed work to deliver a sustainable waste management solution for the area in light of the earlier planning failure for a similar plant proposed for Kidderminster.

The energy-from-waste plant will be built by Hitachi Zosen Inova. The plant will treat around 200,000 tonnes of residual waste each year and generate electricity for the grid.

The Eversheds team was led by Michael Grimes, who was assisted by a multi-disciplinary team including Andrew Hirst and Conor Rafferty (projects), Chris Henshaw and Chris Vickers (construction), Clare Hardy and Frances Woodhead (local government), Charlotte Tanikal (real estate) and David Jervis and Richard Johnson (tax).

Eversheds worked closely with the in-house legal teams at each council.