(a)

the Partnership had been working together now for over four years with a minimum of a further 28 years still contracted;

(b)

the Partnership began with a common goal, which was ‘to secure a timely economic, reliable and proven solution to divert the Partnership’s residual waste from landfill with reduced carbon impact including Combined Heat and Power (CHP) if possible’ and it was recognised that to deliver this goal would require significant political commitment and leadership;

(c)

as a result of the three authorities joining together, the partnership had generated a greater market interest, benefited from an economy of scale, shared cost and expertise and had secured a significant financial PFI grant from the Department for Environment, Food and Rural Affairs (DEFRA);

(d)

at the initial stages of procurement nine international companies expressed an interest in the project with eight submitting a solution;

(e)

the Partnership’s preferred solution was by MVV Umwelt, this solution presented a number of significant economic and environmental benefits by delivering a solution partnering with the MoD and Babcock Marine; this potential solution and wider public/private sector partnership had helped the SWDWP to retain the PFI credit support from DEFRA;

(f)

due to the solution proposed by MVV, the economic advantages of  selling heat and power to MoD and Babcock Marine had helped the three authorities to jointly realise savings of £389m against the estimated cost originally projected, this saving combined with the £177m PFI Credits had realised a total financial benefit of £566m for the SWDWP;

(g)

if the MVV solution was delayed against the project programme the financial impact on the three authorities was estimated as follows:

a three month delay equalled an estimated cost of £1.1m;

a six month delay equalled an estimated cost of £3.9m;

a two year delay equalled an estimated cost of £27.3m;

(h)

failure to deliver the MVV solution was estimated to have a financial impact on the three authorities of £285m as well as an additional impact on the future cost effectiveness to the MoD and Babcock Marine;

(i)

the environmental benefits of MVV’s solution included a guaranteed diversion of 97 per cent of waste from landfill which contributes to a net carbon footprint reduction of around 74,000 tonnes per year (approx 5 per cent of Plymouth’s carbon footprint) along with a reduction of emissions in Devonport Dockyard by MVV’s facility providing electricity and heat directly to the MoD and Babcock Marine;

(j)

other benefits of the MVV solution included –

a local waste disposal option for commercial and industrial waste;

the potential to expand the distribution of heat to a wider network outside of the dockyard;

local economic benefits through construction and business opportunities;

developments to the local area through Section 106 agreements included in the planning application;

(i)

moving forward the Partnership and MVV faced some significant challenges, most notably securing planning approval and an Environmental Permit as well as improving public perceptions through gaining their acceptance and understanding.