Energy-from-waste plant to cost £72m.

GUERNSEY needs to spend £72m. to solve its long-term waste-disposal needs. The Board of Administration will ask the States later this month to approve building an energy-from-waste (EfW) plant at Longue Hougue. This news comes as Advisory and Finance has just warned all States committees to delay any unnecessary capital spending due to the number of major projects already planned for the next 10 years. Board of Administration president Roger Berry said the EfW project was at the heart of the island's waste-management strategy. 'If the States doesn't accept this, the only thing we can do is carry on with landfill and, because of an increase of material at Mont Cuet, that will be full in 2014,' he said. 'That's not that far away and it was originally expected to last until 2025. 'We have to do something that is sustainable for the island and this represents the most cost-effective and proven option.' Since it received in-principle approval last June, the board went out to tender. The original £100m. price tag forced a rethink, with the two tenderers, Lurgi and MES, working with the board to trim costs. Lurgi emerged as the preferred option after retendering at a fixed price of £72m. The EfW plant will be self-financing, with revenue generated from tipping fees and from the electricity the plant will produce. It is expected that the plant will supply 10% of the island's demand for electricity. Lurgi (UK) is part of a multinational company which has built more than 50 similar plants throughout Europe. The fixed-price project will be financed by a States loan and will be paid back with interest over 25 years. Project director Alan Richards said a lot of work had been done to draw up a contract that would protect such a large investment. 'There has been a lot of interest in government contracts and whether they are safe,' he said. 'We spent a lot of time developing the contract, which has a fixed price and guaranteed performance levels, or there are financial penalties. 'We have done a lot to give as much comfort and security as we can.' Since last June, the board also re-examined alternatives to an EfW plant, including the possibility of long-term use of landfill, but found it was not environmentally acceptable. Extended use of Chouet headland was the only other possibility, but at a heavy cost to the landscape and stone reserves. 'We have the best option and we must go for it,' said Deputy Berry. 'This plant will protect our environment and our proposals will serve the island for generations.' The plant will mean higher refuse bills, with islanders paying 50p per person per week to dispose of their rubbish at the plant. 'It will force contractors into doing more separation of waste so they can avoid the high price of gate fees, which will be £100 a tonne,' said Deputy Berry. (Caption - Mont Cuet tip will be full by 2014 and building an energy-from-waste plant at Longue Hougue is the most cost-effective alternative to landfill, according to the Board of Administration.)