The project reached financial close in the third quarter of 2006. At this time the central government was ambitious in promoting private finance initiative PPP projects, and there was strong support for achieving waste targets. Financing for big projects was possible, and local councils were confident that they would be able to continue to pay for large and complex facilities.
The current environment in waste PPPs in the UK is completely different from the environment when the project was initiated. Much of the funding for local authorities in the UK comes from the central government, and after the Global Financial Crisis, and the introduction of austerity measures, the central government started to reduce this funding and support. Local authorities are responsible for funding waste PPPs, and they are finding themselves re-evaluating these projects, as their unitary payments are becoming unaffordable.
Currently, two waste projects are under the spotlight in the UK. In Manchester, a project was terminated after re-evaluation by local authorities and private parties, while in Sheffield, the City Council and the Project Company are in discussions over whether to continue.