What are the NLHPP programme cost and how is it funded?

What are the NLHPP programme cost and how is it funded?

In early 2019 NLWA developed its detailed cost estimate of £1.2bn at current prices, which has continued to provide a reliable basis to manage the cost performance of this important project for the residents of north London.

The 2019 estimate was validated by a robust benchmarking exercise, which examined the major elements of the project’s construction costs against comparable infrastructure projects, providing strong evidence that enables us to inform our decision making as the project proceeds.

Almost four years later, having committed over £1bn of contracts, the project remains on track to deliver within the original cost estimate at the 2019 price point.

NLWA & NLHPP funding

North London Waste Authority is responsible for the cost-effective disposal of waste collected by the seven borough councils in north London (Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest).

The disposal of this waste is paid for through council tax in north London in the form of a levy charged to the seven boroughs by NLWA. The cost of the NLHPP will be paid for by this levy for managing the disposal of their waste. The cost of the project is accounted for in this levy and boroughs have taken account of this in their future financing plans.

NLWA is committed to funding this project with the most cost-effective solution.

As a public authority, NLWA is able to borrow from sources such as the Public Works Loan Board to secure finance at lowest cost possible to the taxpayer. Also, in 2019, the Authority was awarded £100m of borrowing at the Government’s Local Infrastructure Rate, which allows borrowing on especially favourable terms for local authority projects which represent high value for money.

How will the project affect council tax?

Each borough determines the appropriate level of council tax in their areas and this arrangement will continue when the new facility is built. The Authority’s forecast is that no significant changes will happen to its levy in the short to medium term. The cost per tonne of waste treated in north London is, and will continue to be, very low compared to costs in the open market.