Contractor appointed preferred bidder on 28-year PPP scheme

Balfour Beatty has been appointed preferred bidder on a £500m waste-to-energy project for Gloucestershire council.

The contractor will invest 30% of the required equity, approximately £13m, in the 28-year PPP project.

Balfour Beatty will work on the scheme in a 30/70 joint venture with waste management company Urbaser.

Balfour Beatty will design and construct the facility, before handing over to Urbaser to operate it from late 2015 onwards.

The energy-from-waste facility will divert over 91% of Gloucestershire’s municipal waste from landfill.

Once complete the facility will generate 116,000MW hours of electricity annually, which is sufficient to power 25,000 homes.

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.”