Council agrees £10m settlement with waste management firm
- Details
Leicester City Council has agreed to pay its waste contractors £10m in order to settle a "protracted commercial dispute".
The council and waste management firm Biffa, which holds the contract for bin collections in the city, agreed the amount following mediation, the council has said.
The pair also agreed a public statement under the terms of the settlement, which reads: “The BIFFA Leicester waste contract is a long-standing agreement that has been in place since 2003 and is valued at £405m over its lifetime.
"A protracted commercial dispute arose that was eventually settled with a payment to BIFFA of £10m after mediation, less than 2.5% of the contract value.
"There have been no disruptions to waste collections in Leicester during this period.”
It is not clear what the dispute concerned.
The £10m spend is now set to be reported to the council's Overview and Scrutiny Committee on 3 December.
It will also be considered as a separate confidential briefing item at the meeting, a council spokesperson said.
The statement added: "Under the terms of the agreement the council is not able to make any further comment."
Adam Carey
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