Project Costs and Funding

North London Waste Authority is responsible for the cost-effective disposal of waste collected by Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest councils. The Energy Recovery Facility is the best value for north London’s council tax  payers, while also meeting better environmental and social outcomes for managing general waste.  A robust value for money exercise was undertaken in line with The Green Book guidance by HM Treasury and it has been identified that alternative options for waste management would have a higher cost.

In 2022 a contract was signed with ACCIONA for the delivery of the Energy Recovery Facility at Edmonton EcoPark. The contract price was set at £799.3M.

Inflation is carefully managed for the contract cost with inflation risks increasingly diminishing at the point subcontracts are awarded. The Authority has contractual mechanisms and close dialogue with ACCIONA to manage this across the project and safeguard the successful delivery of the Energy Recovery Facility, whilst achieving best value for money and protecting the interests of all parties. 

The disposal of north London’s waste is paid for in the form of a levy charged to the seven boroughs by NLWA. The cost of the Energy Recovery Facility will be paid for by this levy for managing the disposal of their waste, and boroughs have taken account of the levy in their future financing plans. Building the project represents a cost effective route for waste disposal in north London for the future. Providing a publicly owned facility in north London means councils avoid sending waste to third party and private sector organisations which cost more in the long term. The cost per tonne of waste treated in north London is, and will continue to be, very competitive compared to costs in the open market.

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 the lowest cost possible to the taxpayer.