This Service Level Agreement ("SLA") has been produced to provide assistance to local authorities in the procurement of residual waste treatment projects through the Private Finance Initiative ("PFI").1
The SLA has particular relevance in two tier authorities, characterised by having a Waste Disposal Authority ("WDA") and one or more Waste Collection Authorities ("WCAs"). Typically, this will tend to include one county and a number of district councils (although in certain circumstances more than one county may be included).
The purpose of this SLA is to help ensure the major investment in the new residual waste treatment facility is protected. To achieve this the WDA needs to have a clear idea of the waste which each of the WCAs anticipate collecting so that the provisions relating to the quantity and profile of waste may be negotiated in the agreement the WDA will enter into with its contractor (the "Project Agreement").
Although the development of this SLA is linked to the finalisation of the Project Agreement referred to above, this SLA can still be entered into prior to the completion of the Project Agreement. Detailed provisions relating to Project Agreement will then need to be "flowed down" into the SLA when it is finalised. It may be necessary for the parties to this SLA to amend or vary this SLA following the outcome of the procurement for the Project Agreement.
When completing OBC templates for applications for PFI credits, two tier Authorities are requested to provide details of the arrangements put in place for securing appropriate input and support from district councils. Where relevant, they are requested to detail the nature of partnership arrangements, including history, constituents etc (see Section 6, WIDP OBC Template, June 2008).
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1 Although this SLA has been drafted on the basis that the Residual Waste Treatment Project is being procured through PFI it will be equally compatible with other procurement methods.