It'll Cost at Least £28million to NOT Build Incinerator
7:17am 25th October 2013
(Updated 7:17am 25th October 2013)
A new report by top lawyers has concluded how much Norfolk County Council will have to pay to get out of building the King's Lynn incinerator.
The legal firm was brought in after the local elections to go through the 1000 page contract and try and find ways to get out of it as cheaply as possible.
If the authority voluntarily breaks the contract it is estimated they would have to pay £28 million to Cory-Wheelabrator.
It would cover the company's costs, which would include compentation to their own subcontractors, any redundancies, and also to give them "a specified rate of return on certain amounts that the Contractor has invested in the project"
That last phrase is unclear according to the QC meaning Cory-Wheelabrator could interpret it to mean "a specified rate of return" on investments they would have made during the entire 25 years of the project.
That would add up to more than £100million.
On Monday the County Council will have a huge debate. Expect it to be very long, very political and pretty intense.
Then on Tuesday the Cabinet will meet, and if they're going to cancel the incinerator project then we should know by Tuesday lunchtime.
The council will also have to figure out what they will do with our rubbish if the project doesn't go ahead. With landfill space running out and costs rising, it's going to be a big problem if they don't figure out a solution in the next few years.