Water and waste are mature sectors that typically can benefit from supporting regulatory frameworks, monopolistic positions and long term security of revenues. Several investment opportunities arise from the need to deal with different types of waste (municipal waste, biosolids and hazardous waste) and recycling technologies which are driven by new regulations.
About the portfolio
Assets include waste processing concessions.
Investment attractions
- Long term government backed contracts
First investment
IPO in 2014
Potential risks
- Hand-back risk
Our waste and wastewater assets
East London Waste Authority
The ELWA project processes around 430,000 tonnes of household waste each year from the four London boroughs of Redbridge, Barking and Dagenham, Havering and Newham. Financial close of the PFI project was achieved in December 2002 and the sites became operational in 2006 and 2007. The project includes two mechanical biological treatment facilities at Frog Island in Havering and Jenkins Land in Newham plus four reuse and recycling centres. The site produces revenues based on volume (with a contractual floor) and fixed price bands indexed by inflation.
All O&M Services, including lifecycle replacement are subcontracted to Shanks Waste Management. Managed services are provided by Shanks other than finance and accounting which has been subcontracted to HCP Management Limited.
Case study spotlight: East London Waste Authority ("ELWA")
East London Waste Authority (ELWA) was established 1986 as a Statutory Waste Disposal Authority, responsible for the disposal of waste collected by its four Constituent Councils (the London Boroughs of Barking & Dagenham, Havering, Newham and Redbridge). ELWA also provides four public Reuse and Recycling Centres for local residents. The facility processes around 430,000 tonnes of household waste each year.
