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Balfour Beatty, the international infrastructure group, announces today that it has been appointed preferred bidder for the £500 million Gloucestershire Residual Waste Project in joint venture with Urbaser. The 28-year PPP project involves the design, build and operation of an energy-from-waste facility for Gloucestershire County Council.
The project will be undertaken by a 30/70 joint venture between Balfour Beatty and Urbaser. Balfour Beatty will be involved in the design and construction of the facility, following which the facility will be commissioned and handed over to Urbaser to operate from late 2015 onwards.
The energy-from-waste facility will divert over 91% of Gloucestershire’s residual municipal waste from landfill. The facility is estimated to generate 116,000MW hours of electricity annually, which is sufficient to power more than 25,000 homes.
Balfour Beatty will invest 30% of the required equity, approximately £13 million, in the project which is expected to reach financial close in the second half of 2012.
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.”