Magazine article Public Finance

New Warning on PFI Waste Scheme Delays

Magazine article Public Finance

New Warning on PFI Waste Scheme Delays

Article excerpt

Delays in developing new Private Finance Initiative waste treatment facilities could result in hundreds of millions of pounds worth of European Union fines, the National Audit Office has said.

In its report on local authorities' use of the PFI to develop waste management sites, published this week, the NAO warns that the EU's 2013 target for landfill reduction in England remains challenging'.

This could leave the Department for Environment, Food and Rural Affairs facing a big bill unless new waste management projects, both PFI and publicly funded, can be brought into operation in time.

The NAO criticised Defra for a 'slow start' in responding to the 1999 EU directive that demanded a 50% reduction on 1995 levels in the use of landfill in England by 2013.

Since then, only two new PFI-funded waste treatment sites have been completed, although local authorities have finished building a number of other sites outside the PFI programme. …

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