Balfour Beatty has been appointed as preferred bidder for a £500 million Gloucestershire PPP project.
The 28-year deal will see the design, build and operation of an energy-from-waste facility for Gloucestershire County Council with Balfour Beatty working in joint venture with Urbaser.
Balfour willdesign and construct the facility after which it will be commissioned and Urbaser will operate it from 2015 onwards under their 70:30 stake in the project.
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.”
The energy-from-waste facility will divert more than 91 per cent 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 per cent of the required equity, approximately £13 million, in the project which is expected to reach financial close in the second half of 2012.