GIB provides financing for Shanks PFI contract with Wakefield Council

Following the announcement by Shanks Group plc today that it has signed a 25 year contract with an estimated contract value of £750 million with Wakefield Council, the UK Green Investment Bank (GIB) is pleased to confirm that it has provided finance alongside other commercial banks for the construction and operation of waste treatment infrastructure which underpins the contract.

The main site at South Kirkby, West Yorkshire will provide a selection of facilities to recycle, treat waste and generate sustainable power in the Wakefield District. For processing black bag waste a facility combining mechanical treatment, innovative autoclave technology and anerobic digestion technologies will help to minimise waste to landfill.

Overall the facilities will process on average approximately 200,000 tonnes per annum of municipal solid waste helping to increase the local authority's recycling rate to at least 52%.

GIB will provide up to £30.4m of senior debt to the project on commercial terms alongside a banking syndicate of leading international banks; BayernLB, Sumitomo Mitsui Banking Corporation, and Barclays Bank which together are providing a total of £121.7m.

"We are delighted to support Shanks in this project which is one of our first investments in this sector. Each year the UK generates approximately 190 million tonnes of waste, which causes environmental damage and costs businesses and consumers money. The UK Green Investment Bank is committed to reducing the amount of waste which goes to landfill, supporting the UK in its transition to a low carbon economy, whilst driving a commercial return for the bank."

Lord Smith of Kelvin
Chair of the UK Green Investment Bank