The key Performance Standard relating to the diversion of Contract Waste from landfill should be expressed as a percentage of Contract Waste which is not processed plus a percentage of Contract Waste that is processed (to allow for the residues which remain after the Contract Waste has been processed). The percentage of Contract Waste not processed will often be zero but will be positive if there is a capacity constraint or there is planned maintenance in the relevant Contract Year.
The Diversion Performance Deduction should apply to all tonnages of Contract Waste i.e. that accepted by the Contractor plus any tonnage of Contract Waste not accepted by the Contractor. If the Contractor does not accept Contract Waste then the Non Acceptance Deduction should also apply (See Section 2.5).
In some waste Private Finance Initiative (PFI) contracts, contractual diversion targets have been equated to Biodegradable Municipal Waste (BMW) diversion targets. However, it is recommended that where the project involves thermal treatment, Municipal Solid Waste (MSW) diversion rather than BMW diversion is the most effective key Performance Standard. This is because from a practical perspective, the only option available to the Contractor to reduce MSW to landfill will also divert BMW from landfill. Where the project involves Mechanical and Biological Treatment (MBT) as a pre-treatment for landfill, the key Performance Standard should be the efficiency of the process in reducing the BMW content of the waste.