APPENDIX F

RISK

All Local Authorities are faced with having to address how they can meet the EU Landfill Directive diversion targets. Central Government is keen to encourage partnership working between both two tier and unitary authority structures. There are significant benefits in terms of environmental and financial impact from joint working. An integral part of developing the Project Initiation Documents (PIDs) has been the creation of a Risk Register whereby risks to the project have been identified and mitigating actions recommended. The key risks summarised below are:

Risk: Financing future infrastructure.

Response: Many major infrastructure projects attract PFI support. This can be an expensive and lengthy process. It would be advantageous to make sure alternative (flexible) arrangements are available so as to not totally reliant on PFI.

Risk: Financing site purchase(s).

Response: Implementation of the JRMWMS will require the provision of sites capable of hosting new facilities. Funding will need to be secured not only for the delivery of the JRMWMS and the JWDPD, and procurement process, but also for the potential acquisition of land and eventual new operational contracts. In respect of sites, land valuers and agents should be consulted as early as possible together with solicitors to undertake legal searches etc.

Risk: Accurate longer term financial modeling is currently not available beyond the first 3 years; this could de-stabilise the project in the future if funds are not identified to complete the task.

Response: Finance officers need to be engaged in the financial planning process to ensure that best available estimates are incorporated into medium and long-term financial plans. Longer term financial planning will lead to increased efficiency in terms of project delivery.

Risk: Decision making processes within each authority cause delays to the programme timetable leading to a risk of incurring fines earlier than necessary.

Response: Consider establishing a simplified decision making process and dedicated project support office..

Risk: The UAs do not agree on the proposed strategy. This will cause delay and lose industry confidence in the project:

Response: Need to identify what are the key issues with regard to the decision making process, resources and capacity. Manage the scrutiny and consultation processes to reduce the risk.