EfW offer still there

LURGI is still committed to building an energy-from-waste plant in Guernsey. There were fears that the £80m. deal for an incinerator and the first two years' operation could be lost after the States voted for Deputy Scott Ogier's requete asking for an independent inquiry into waste disposal.

But Lurgi (UK) director David Porter said that if nothing extraordinary happened in the interim, the contract would still be on the table. The price was confirmed only two months ago.

'I'd say in six months' time, once the alternative technologies and shipping to Hamburg have been looked at and we remained in first place, I think we can carry on,' he said.

'Lurgi is really interested in doing this plant for Guernsey and we have put 30,000 to 40,000 hours of work into this, most unpaid, but we really like building plants and good plants and to be thwarted at the 11th hour is extremely disappointing.'

He said there would be no knee-jerk reaction.

'If all things are equally set in six months' time and then we go with this, there is no reason why the price should change, apart from RPI, other than something extraordinary.'

But he warned events like the recent steel price hike could have an effect.

'It's one of the toughest contracts I've negotiated and gave Guernsey a very secure financial position on performance,' he said.

However, it was a position he did not think the States needed because of the reliability of the technology.

Mr Porter is confident the independent panel of experts formed as a result of the requete will confirm that the EfW plant is the best option.

The timeframe for its construction would depend on suppliers.

'It is a busy time and there are a lot of plants being built in Europe and only certain firms involved in supplying quality equipment. We have to fit into their construction programme.'

He said the next stage was to meet the inquiry panel, which will be set up by the Policy Council.

'I'm quite sure our company will stand up to every aspect and the number one aspect of security of disposal.'

Mr Porter attended the requete debate, but was disappointed that much of members' information on alternatives appeared to come from the websites of companies that had recently gone bust.

'We have been designing one of the most advanced incineration facilities in Europe and I was surprised that people were asking for advanced technology.'

The project has already cost the island about £4m.

Deputy Ogier was pleased the Lurgi offer would remain if the inquiry came back in favour of mass burn.

'A number of times it's been mentioned if we don't sign the price will go up and Lurgi will not be interested, but it seems no one's bothered to ask them.'

Treasury and Resources minister Lyndon Trott, who had raised concerns that the price could escalate, again backed Lurgi.

'The only turnkey contract offered was the Lurgi contract. The other competitors in the marketplace do not offer turnkey options and wanted to transfer the risk of the project to the States,' he said.

'With contracts of this nature, in the opinion of the States' advisers, risk should be placed where it's best managed.'

He welcomed the firm's continuing interest in the contract, 'although I suspect their commercial patience in reality has a much tighter timeframe than people suspect.

'If Lurgi remains the sole preferred tenderer, we may be able to maintain such enthusiasm, but it's now by no means certain that will be the case unless the inquiry is unequivocally clear in its conclusions.'