Plasco Energy Group expects to sign a long-term contract to process Ottawa’s garbage by the end of next week, and is continuing work to get funding for a new plant, says the head of the company.
“There are no issues between us and the city, but it is a very detailed contract, and it’s been careful work by both the city’s inside and outside counsel and our own lawyers,” Rod Bryden said on Friday.
Three months after council endorsed the deal with Plasco by a vote of 22-1, Bryden said the company is primarily working to secure debt financing for construction of the estimated $175-million project, and is in discussion with commercial lenders.
In December, council’s environment committee and council quickly approved the 20-year agreement (which has options for extending it another two decades), with Bryden saying at the time that the company had financing for the plant lined up and wanted to act before it had to renegotiate any agreements — especially since investors have been concerned about unstable capital markets.
The process is moving along as Bryden expected, he said on Friday, “but for sure wouldn’t have taken a step if we hadn’t had council’s approval in December.”
When asked about the status of the contract, all the city said was that staff “will be updating Mayor and Council. Information will be available to media at that time.” There is no set date for that, spokeswoman Jocelyne Turner wrote in an email.
Under the agreement, Plasco would take 300 tonnes of city garbage a day and process it into burnable gas and slag, for $83.25 a tonne in the first year, and increasing with inflation thereafter.