Dundee’s incinerator will still need major investment despite an £8 million upgrade, councillors have heard.
A city council loan to operators DERL has been approved.
This will pay for the refurbishment of boilers and other much-needed improvements, in addition to the insurance claim-funded repairs under way following the blaze that has put the Baldovie plant out of action until next summer.
But chief executive David Dorward has explained this is only a medium-term fix.
He said: ”The current residual waste contract with DERL expires in 2020. At that point in time, the plant would be returned to Dundee City Council and decisions would require to be made on the letting of the required follow-on waste contracts.”
A report into the plant had confirmed the need for further significant investment over a 20-year period.
The chief executive said: ”There is no prospect of DERL being able to raise the funding to undertake this level of investment and nor is it considered appropriate or feasible for Dundee City Council to seek to make such a significant investment.
”It is therefore proposed to commence a procurement exercise for the long-term contract to circa 2035. The future waste contract will provide a mechanism for the city council to recover its current debt with DERL and its investment in the existing plant.”