NLWA earns favourable borrowing deal for £100m funding
November 2019
Neil Rutledge, Director at Amberside Advisors Ltd and lead Financial Advisor to North London Waste Authority, commented:
“We are delighted to have secured the maximum amount available from HM Treasury for this highly eligible Local Infrastructure project. It was in our mind, when the bidding window opened on 1st Jan 2019, that widespread use of prudential borrowing by other local authorities might crowd out more essential infrastructure and elicit a reaction from HM Treasury which, if not addressed, could harm the project’s prospects. Our client, North London Waste Authority, agreed. When a month ago, HM Treasury duly sought to put the brakes on more general borrowing, by adding 1% to the margin over gilts paid by Local Authorities, our foresight in pursuing this funding source became clear. That we have secured £100m at a cost of Gilts plus 60bp for our client represents a strong start to a more comprehensive funding programme we are now putting in place.”
Project details
Client:
Sector:
Subsector:
Service:
-
Today North London Waste Authority (NLWA) announces the successful outcome of a competitive bid to borrow £100m from the government at a reduced interest rate. The money will be used to finance the Authority’s flagship infrastructure project to replace its existing Energy from Waste plant with a new Energy Recovery Facility in Edmonton, north London.
The successful application to borrow £100m at a reduced borrowing rate of 1.7% interest instead of the usual 2.9% is just one of the Authority’s actions to deliver the North London Heat and Power Project (NLHPP) at the lowest possible cost for the residents of north London.
The award for this nationally significant infrastructure project further highlights the NLHPP as a vital piece of waste management and energy infrastructure with strong benefits for the environment and society. It will help NLWA to build long-term capacity for London’s non-recyclable waste and in so doing, also make a positive contribution to addressing the Climate Emergency. As a result of the lower rate borrowing available the Authority can now continue to make rapid progress on delivering the project, particularly the most capital intensive stages of the work.
The assessment criteria for this award included an evaluation of the environmental and societal benefits the NLHPP will provide, such as:
• Carbon Dioxide (CO2) saving when treating non-recyclable waste in an Energy Recovery Facility
• Improved air quality and other environmental benefits
• Over 2,500 employment opportunities during construction and operation, as well as
• Over 100 apprentices and 225 onsite skills training opportunities for the local community.
The scheme will see the modernising of Edmonton EcoPark to replace the 50-year-old Energy from Waste plant with a world-class Energy Recovery Facility and flagship Resource Recovery Facility which includes a brand-new Reuse and Recycling Centre open to the public. Part of the project incorporates a new education and community centre called EcoPark House, which will help local people learn about the circular economy values of reducing, reusing and recycling their waste, and in doing so reduce their impact of the environment.
The NLHPP represents the most cost-effective and sustainable way to treat non-recyclable waste in north London over the coming decades and forms a key part of NLWA’s strategy to increase recycling rates to 50% and encourage waste prevention amongst residents.
In the context of the Climate Emergency, the NLHPP is part of the solution for moving towards a Net Zero carbon economy, consistent with recommendations from the Committee for Climate Change.
For more information, please contact Trudi Axtens, North London Heat and Power Project Communications Manager, on 020 8489 3940 or Trudi.Axtens@nlwa.gov.uk
