The selection of the appropriate technology for the Reference Project should be informed by any relevant work done before the OBC stage. For example, the Authority should have evaluated different technical solutions for managing the whole municipal waste stream as part of the process of developing, consulting on and finally adopting its Municipal Waste Management Strategy (MWMS).3 The MWMS will also have been the subject of a Strategic Environmental Assessment (SEA).4
However even when a technology options appraisal has been done before the OBC stage the Authority should always consider whether it is sufficient given that the aims and objectives of the options appraisal at the OBC stage are very specific and may be different from earlier studies.
In some cases it may be necessary to do additional work on the technology options appraisal at the OBC stage, notwithstanding the fact that an appraisal has been completed as part of the MWMS. The outcome of the OBC appraisal must however be consistent with the policies of the adopted MWMS.
At the MWMS development stage, a wide range of options is typically considered and site locations and precise costs may only be identified in general terms. Therefore the options appraisal at the MWMS stage may not be sufficient to underpin an OBC where it is more important that the Authority recognises and understands the deliverability issues linked to technology choice.
Inappropriate reliance on the options appraisal conducted at the MWMS stage creates the risk that the technology used in the Reference Project is not consistent with the aims of the OBC. For example, if the outcome of an options appraisal conducted during the development of the MWMS prescribed a specific technology for residual waste treatment that was unproven then it may not be possible to finance such a solution within a PPP/PFI type structure. Hence it would be inappropriate to use such a technology for the Reference Project in the OBC, if the OBC showed a PPP/PFI structure offered best VfM.
If an Authority is uncertain as to whether an options appraisal is required at the OBC stage, it should consult with its WIDP Transactor at the earliest opportunity.
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3 Defra has produced guidance on the production of a MWMS - "Guidance on Municipal Waste Management Strategies", Defra, July 2005 available at http://www.defra.gov.uk/ENVIRONMENT/WASTE/localauth/pdf/guidemunwaste-strategy.pdf
4 There is a legal requirement under the SEA regulations to conduct a SEA of waste management strategies. "A Practical Guide to The Strategic Environmental Assessment Directive", ODPM, September 2005 provides details on the procedures to follow and is available at: http://www.communities.gov.uk/documents/planningandbuilding/pdf/practicalguidesea.pdf