Lovells

Lovells has advised Cornwall County Council on an Integrated Waste Management PFI contract with SITA UK, funded by RBS and EIB.  The project is the first major Public Private Partnership (PPP) in the waste management sector in the UK to be funded on a limited recourse basis since 2002.  The contract, worth £425m, was signed on 16 October 2006.

The agreement is the culmination of almost five years work for Lovells during which time the firm advised the Authority on all issues arising out of the scheme and its procurement including the termination of its existing contract with its LAWDC, (Local Authority Waste Disposal Company) and the acquisition of a local waste recycling company.  The project was a pathfinder for the standardisation of waste sector PFI contracts with Partnerships UK and Defra.  In January 2006, SITA was selected as preferred bidder and now has a 30 year contract  to manage Cornwall County Council's recycling recovery and waste disposal which will start on 1 November 2006.  The project company, Sita Cornwall Limited, will acquire and refurbish the Council's existing waste disposal infrastructure including two materials recycling facilities, two landfill sites and a number of transfer stations and recycling centres.  Subject to planning, Sita Cornwall Limited will also design, build, finance and operate a new 240,000 tonne energy waste plant.

In line with EU policies, the project will reduce the amount of waste sent to landfill and enable energy generation from residual municipal waste.  This is EIB's first role as lender in the waste sector.

Lovells' team on the transaction was led by project finance partner Philip Brown with assistant Ross McKinnon and property partner, Gill McGreevy.  Allen & Overy acted for SITA.  Ashursts acted for the funders.

Commenting on the deal, Philip Brown said:    

“The process of developing this scheme was lengthy and was carried through by Cornwall County Council in the face of strong opposition from a variety of quarters.  I am pleased to have been involved in the procurement of a sustainable future for waste disposal in Cornwall which implements in full the government's waste hierarchy."

About Lovells  

With over three thousand people operating from 26 offices in Asia, Europe and the United States, Lovells is one of a small number of truly international law firms. We advise many of the world's largest corporations, financial institutions and governmental organisations.  We regularly act on complex, multijurisdictional transactions as well as some of the most high-profile commercial disputes.    

www.lovells.com