Private Finance Initiatives
A PricewaterhouseCoopers case study

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Page 4: The procurement process

Pricewaterhousecoopers 4 Diagram 1PricewaterhouseCoopers was brought in to provide financial advice and assistance in managing the procurement process. In this instance, PricewaterhouseCoopers was acting on behalf of the local authority. The Hereford and Worcester waste management project is the first fully integrated waste management PFI and a number of factors needed to be considered.

Waste management consists of:

  • Refuse collection from homes and industry
  • Transportation of waste to the disposal sites
  • Waste treatment and disposal
  • Recycling and energy recovery
  • Landfill management.

The global drive to improve the management of waste and increase the amount of recycling has generated new global targets. The following apply in the UK:

  • > 25% waste recycled by 2000
  • > 40% waste recovered by 2005
  • < 60% waste buried in landfill sites by 2005.

Landfill sites are the primary means of disposing of waste in the UK. However there is less land available and the effects of landfill on the environment remain unclear. In addition, the amount of waste is increasing as the number of households grows.

The use of ‘waste to energy’ incinerator plants is also increasing. These plants burn certain types of waste and require capital investment and planning permission. However, uncertainty exists over the effect of incineration on the environment and these plants may be redundant in 25 years’ time. These are all major concerns for the environmental lobby groups.

PricewaterhouseCoopers | Private Finance Initiatives
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