Local Authority Funding
PFI criteria
Waste specific PFI criteria was introduced in September 2000 which ensured that attention is focused on creating recycling-led and sustainable solutions that are in keeping with the key principles of the waste hierarchy.
Revised Waste PFI criteria were issued in May 2006. Projects must meet these criteria in order to be considered for PFI credits:
- Criteria for securing waste PFI credits (PDF 30 KB) - August 2007
The criteria aim to ensure that PFI credits are allotted to projects that are value for money and enable the investment in residual waste infrastructure necessary if the demanding targets in the Landfill Directive and Waste Strategy for England 2007 are to be met. It seeks to ensure thatPFI projects will continue to meet requirements and provide continuous improvement over the long term.
In 2005, several PFI projects were up and running, and a dozen more in procurement at that time, Defra consulted on suggested changes to the original PFI criteria. If you require a copy of the consultation document and the Summary of Responses document please contact Matt Cook – matt.cook@defra.gsi.gov.uk.
History of the PFI criteria
In September 2000, the Government introduced new criteria which changed the focus of waste PFI away from incineration towards recycling led solutions. The criteria ensured that projects submitted for PFI credits would follow the waste hierarchy (minimisation, re-use, recycling and composting, recovery and finally landfill) and placed a £25m cap on PFI projects in an effort to enable a larger number of projects to receive funding.
While the criteria succeeded in its aims, stakeholders leveled a number of criticisms against them, particularly regarding two key issues: the £25m cap on credits and the perceived negative stance on incineration.
After much discussion, in October 2003, Ministers approved changes to these two key criteria. The £25m cap was raised to £40m and specific references to incineration were removed and replaced with greater emphasis on the waste hierarchy.
Page last modified:
12 September 2007
Page published: 5 February 2003