Cambridgeshire County Council is facing weekly costs of around £100,000 due to ongoing problems at a waste management plant near Waterbeach. The council still has 11 years left on a £36 million-per-year contract with Thalia Waste Management, signed in 2008.
The facility was originally designed to process non-recyclable waste, but operations have halted as the plant requires upgrades to reduce emissions. These improvements would require significant investment from the council, which is currently paying six-figure sums each week to manage waste through alternative routes.
Lucy Nethsingha, the council’s leader, described the contract as one that “has not been good for Cambridgeshire in the long-term.” Thalia Waste Management stated that it continues to support the authority as it reviews its strategy for the site.
The contract was awarded under a private finance initiative (PFI), in which a private company funds the initial construction of a public facility. At the time of signing, the mechanical biological treatment (MBT) facility met all legislative requirements for processing general “black-bag” waste.
However, new conditions imposed by the Environment Agency in August 2022 forced the facility to cease operations. Waste is now being diverted to more expensive disposal methods, increasing costs for the council.
Auditor KPMG noted in a report for the authority’s Audit and Accounts Committee: “The facilities require upgrades to reduce emissions at significant cost which must be met by the council according to the terms of the waste PFI contract. This has resulted in increased costs of circa £100,000 per week to manage the treatment of the waste. Costs continued to rise during 2024-25 due to the facility being non-operational, which required waste to be diverted through more expensive routes.”
Nethsingha, a Liberal Democrat, added: “The waste PFI, as with so many PFI deals, has not been good for Cambridgeshire in the long term. Changes to legislation have meant it has not been operating as originally expected. The council have been working to try to improve the operation and will continue to do so.”
A special meeting of the council’s Strategy, Resources and Performance Committee is planned for early next year to discuss the future of the Waterbeach site. It is expected to be held in closed session due to confidentiality around the project.
