There is already doubt over many of the projects directly affected by the decision, with the South London Waste Authority revealing it will now only sign a long-term treatment deal if it still makes economic sense (see letsrecycle.com story).
And, concerns have been raised over just what effect the change (see letsrecycle.com story) could have on the development of waste infrastructure in general, and in particular in terms of the damage it could cause to the banks' confidence in supporting major projects.
Merchant facilities
Some in the sector have suggested the announcement could precipitate a move towards waste management companies developing merchant facilities instead of infrastructure under council contracts, while there are also claims that more material could be sent to facilities overseas.
A private sector representative said there would also be opportunities in expanding existing infrastructure such as some of the older municipal incinerators in the Midlands - something that Coventry council has mooted as an alternative to its now-abandoned ‘Project Transform' - and that some had recently revealed they were short of material.
And, a spokesman for waste sector trade body the Environmental Services Association highlighted the Spending Review's potential impact on opening up alternative financing avenues such as prudential borrowing.
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Source: letsrecycle.com