The scope for the Contractor to exceed the base case diversion performance will depend upon the technical solution employed. For example, thermal treatment combined with recycling of bottom ash may leave little opportunity for improved diversion performance whereas MBT producing a compost like output (CLO) may leave significant scope for over performance relative to a conservative base case assumption. However, in either case the net financial benefit arising from the Actual Landfill Tonnage being lower than the Target Landfill Tonnage should be subject to a sharing mechanism.
It is recommended that the benefit of the avoided gate-fee on the additional tonnage diverted should fall to the Contractor whilst the avoided landfill tax should be subject to a sharing mechanism (see Section 2.8).