The Payment Mechanism should refer to the Contractor's diversion target or Target Landfill Tonnage, which should be defined as the tonnage of Contract Waste that the Contractor may send to landfill in any one Contract Year. The relevant tonnage of Contract Waste in any one Contract Year should be calculated to take account of the expected residues from the waste treatment process (e.g. fly ash or non-recyclable bottom ash) as well as any Contract
Waste which is not processed at all. For projects based on thermal treatment (with or without pre-treatment), there should be no bottom ash being landfilled as the preferred approach is to divert such waste from landfill, for example, by using the ash for a beneficial use. In such projects the Target Landfill Tonnage should not include bottom ash. In projects where residues have no market outlet and the base case assumption is that it should be landfilled then the Target Landfill Tonnage will be a significant percentage of Contract Waste.