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Veolia bags Southwark waste PFI

Veolia Environmental Services has signed a 25 year PFI, estimated to be worth £668M to provide a waste management strategy for Southwark Borough Council.

The waste management firm will build an integrated municipal waste and recycling centre, including a Mechanical Biological Treatment (MBT) plant, at a site on the Old Kent Rd in Southwark.

Veolia Environmental Services' chief executive, Denis Gasquet, said yesterday: "We are excited at the prospect of delivering a sustainable, and importantly an integrated model for urban waste management with new facilities and new technology."

The Old Kent Rd site will consist of a Household Waste Recycling and Recovery Centre, a Materials Recycling Facility (MRF), and an MBT plant capable of handling 87,500 tonnes of waste a year.

Gasquet added: "The decision also strengthens our position in central London where we already operate major contracts including Brent, Camden, Lambeth, Tower Hamlets and Westminster."

Treated waste from the MBT plant will be transported to the Veolia-operated South East London Combined Heat and Power (SELCHP) plant in Lewisham to produce waste-derived fuel.

Southwark Borough Council secured £34M in PFI funding back in 2005, and hopes the new PFI will ensure they meet their target of 50% of the borough's waste being recycled by 2020.

In addition to a municipal depot the site will include an education centre, tasked with promoting waste reduction and recycling amongst the local community.

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