Completion of the Contract for Energy for Waste Plant

1240/5(6956)

WRITTEN QUESTION TO THE MINISTER FOR TRANSPORT AND TECHNICAL SERVICES BY DEPUTY M.R. HIGGINS OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 26th JUNE 2012

Question

Will the Minister advise members whether the contract for the Energy from Waste Plant has been completed and the Plant is now being fully operated by the Department and, if not, provide details why it has not?

If the contract has not been completed, would the Minister advise -

1. the estimated completion date;
2. the cost of the contract to date;
3. the estimated cost of completing the Plant and who, and in what proportion, will be liable for these costs?

If the contract has been completed, would the Minister advise -

1. the final cost of the project to date;
2. the final cost of failing to hedge the contract?
3. the amount of waste incinerated to date together with a monthly breakdown from start to date?
4. the amount of electricity that has been generated to date and the quantity and value of that electricity that has been sold to the JEC?
5. the current status of landscaping on the site?

Answer

The new Energy from Waste plant at La Collette has processed all of the Island's municipal waste since the 24th December 2010.

The Energy from Waste plant achieved "Take Over" on the 29th July 2011. From this date the plant was handed over by the design and build contractor, CSBC (Jersey) Limited to the States of Jersey. Since the 29th July 2011 the Energy from Waste Plant has been operated by the Transport and Technical Services Department.

The contract between CSBC (Jersey) Limited and the Minister for Transport and Technical Services is not yet completed as there are two further Miles tones for the contractor to achieve.

1. Issue of Performance Test Certificate. The performance tests are underway and are due to be completed by the end of June 2012.
2. 1st Anniversary of Performance Test Certificate. This is an extended availability test and lasts for 365 days following the completion and certification of the performance tests.

If the contract has not been completed, would the Minister advise -

1. the estimated completion date;

It is anticipated the contract will be complete by the end of June 2014.

2. the cost of the contract to date;

The cost, paid to date for the Energy from Waste Contract 14th November 2008, is £99,414,332.

3. the estimated cost of completing the Plant and who, and in what proportion, will be liable for these costs?

The cost to completion of the Energy from Waste Contract is £104,897,048. Providing that the performance tests and availability tests are passed in accordance with the Energy from Waste contract, the Transport and  Technical  Services Department will be  liable  for  the  remaining £5,482,715 costs as these costs form part of the original contract sums which were agreed to in the Energy from Waste Contract of the 14th November 2008.

If the contract has been completed, would the Minister advise –

1. the final cost of the project to date;

As the project is not yet complete the Minister is unable to provide the full and final cost for the project.

2. the final cost of failing to hedge the contract?

As the project is not yet complete the Minister is unable to provide the final cost of failing to hedge the contract.

3. the amount of waste incinerated to date together with a monthly breakdown from start to date?
4. the amount of electricity that has been generated to date and the quantity and value of that electricity that has been sold to the JEC?

Whilst the project is not yet complete the Minister can provide up to date waste tonnages and electricity exported to the JEC.

The unit value of the electricity exported to the JEC is based on the European power markets and is reviewed on an annual basis. This value is subject to a commercial agreement between the Jersey Electricity Company and the Minister for Transport and Technical Services and The Minister for Treasury and Resources.

5. the current status of landscaping on the site?

The Eastern landscape mound has been profiled and planted. The growth is being monitored and where necessary new plants and trees will be put in to replace those that failed to establish themselves.