PFI ready for waste projects

PFI has an important role to play in waste, but contracts must be standardised to lower bid costs. That's the finding in Norton Rose's survey, The Future of Waste PFI.

Nearly three-quarters (74.6%) of respondents to the survey said PFI has an important role to play in the UK meeting EU landfill targets of waste being 75% of 1995 volumes by 2010.

Norton Rose found a clear appetite among lenders for providing the finance for waste PFI schemes, but "the risks inherent in waste projects are seen to be both greater and less tested than those in other sectors".

Respondents also expressed concerns about bid costs: "The size and scope of council-proposed schemes and the choice of technical solution is left to bidders themselves. [This] results in high bid costs and the need for capital commitment beyond the capabilities of many companies. This effectively limits the number of companies that can seriously consider taking on waste PFI projects, thereby limiting competition."

Respondents called for clearer guidance from local government.