Waste services could be worth more than €1bn

Private sector environmental services companies are gearing up to invest over €1 billion in developing the structure needed to deal with the State's growing waste problem.

Businesses are likely to end up providing most of the services required under the waste management plans currently being finalised by groups of local authorities in regions across the Republic.

According to figures compiled by consultant Tony O'Brien, a director with Grant Thornton who has advised a number of regions on their waste management plans, the total cost of the schemes are running at over €700 million.

However, as not all regions have finalised their figures, the ultimate total is likely to be higher than this. Mr O'Brien calculates that it will be well over €1 billion, and says that the likely level of private sector investment required could be as high as €1.3 billion.

Local authorities outside Dublin are likely to rely heavily on private sector involvement, and will contract out most of the services to waste management companies.

The money will be invested over periods of up to 10 years. Companies bidding to provide these services are likely to include established players like the NTR-owned Greenstar, Thorntons, and Limerick-based Mr Binman.

The kind of services that will be required will include bottle banks, civic amenity centres and green waste facilities where householders will bring waste for sorting, recycling and other treatment. Local authorities are likely to take charge and manage these.

Current calculations show that landfill will require an outlay of €146 million for regions with completed plans.

The biggest investment will be needed for waste-to-energy facilities, made up largely of incinerators. These will account for €400 million of the running total of €700 million.

Biological treatment, for waste water, sewage and other waste, is the next biggest item, with a spend of €66.5 million. Other areas requiring significant spending will be recycling related, such as materials recovery facilities. Combined these will cost over €50 million.

There are mixed views of the role of the private sector in waste management. Last year, the Competition Authority, the State's monopolies and price fixing watchdog, said competitive tendering for waste contracts would deliver value for consumers, but only if done right.

When local authorities allow private operators to collect domestic waste, they license the companies and allow them to compete with each other for business from individual householders. But the authority's monopolies division director, Paul Gorecki, said this was not working in consumers' interests.