Date: June 27, 2012
Source: Lancaster County Solid Waste Management Authority
The Lancaster County Solid Waste Management Authority (LCSWMA) said it has been selected over other bidders to enter into negotiations to buy the troubled Harrisburg Incinerator or Materials Energy Recycling Recovery Facility (HMERRF). The Office of the Receiver for the City of Harrisburg, PA, a state appointee hired to clean up the city's financial troubles, chose LCSWMA after considering proposals from two other entities. LCSWMA's offer proposes to solve two problems, avoid having to expand its own incinerator for $175 million, and provide the City of Harrisburg cash needed to reduce its $317 million of debt which has it teetering on bankruptcy. Lancaster initially offered $45 million along with a promise to upgrade the plant but later increased it to $124 million if the city and Dauphin County would guarantee the waste. Mayor Linda Thompson favored proceeding with a deal but was thwarted by the City Council which later relented to opening a bidding process in which five bidders were qualified and three of which submitted proposals. "We were confident that our solution was the best choice all along," said James Warner, CEO for LCSWMA.
See also: "More Trouble and Controversy Surround Harrisburg Incinerator," (www.wasteinfo.com/news/wbj20120410B.htm), April 6, 2012.
See also: "At Least Four Suitors Vying for Harrisburg's Troubled Incinerator," (www.wasteinfo.com/news/wbj20120322A.htm), March 22, 2012.
PRESS RELEASE
June 27, 2012
Harrisburg Receiver Selects LCSWMA For HMERRF Negotiations
Lancaster County Solid Waste Management Authority (LCSWMA) has been selected by the Office of the Receiver for the City of Harrisburg, Pa. as the winner of their competitive bidding process, to enter into immediate negotiations for the purchase of the Harrisburg Materials Energy Recycling Recovery Facility (HMERRF).
The final purchase price will be determined after negotiations with the Office of the Receiver are complete and subject to prevailing interest rates at the time of the purchase transaction. LCSWMA is prepared to dedicate the necessary time and resources to complete the negotiations within the timeframe requested.
"We were confident that our solution was the best choice all along and are glad the Receiver has selected LCSWMA. However, we understand and support their desire for a fair and transparent process. Thus, we were happy to participate in the qualification and bidding procedure," says James Warner, CEO for LCSWMA. "We are anxious to work with the Receiver and The Harrisburg Authority to effectuate a seamless transition of ownership for the asset. We look forward to bringing our proficiency in solid waste management to the City of Harrisburg and the entire Dauphin County community. Together, with customers and residents, we will create successful regionalization between Lancaster and Dauphin Counties."
LCSWMA manages 650,000+ tons of Lancaster County's solid waste each year. The acquisition of the HMERRF will enable LCSWMA to expand its expertise to neighboring Dauphin County and the state capitol, while also benefiting Lancaster County with additional capacity for a growing population. Upon acquisition of the HMERRF, LCSWMA will manage a system consisting of about one million tons of solid waste per year, generate total revenues of approximately $87,000,000 and position itself as one of the largest generators of renewable energy in central Pennsylvania, powering the equivalent of 55,000 homes.
LCSWMA is recognized nationally for its leadership in the industry and innovative approach to waste management. Its Integrated System consists of: (1) a Transfer Station permitted to handle up to 2,200 tons per day; (2) a 1,200 tons per day mass burn Waste-to-Energy Facility for the combustion of waste and production of electricity; (3) the Frey Farm Landfill, permitted for the disposal of 2,000 tons of waste per day; (4) a County-wide recycling program; and (5) a drive-through Household Hazardous Waste Facility. LCSWMA's mission is to manage solid waste and recyclable materials in an environmentally safe, reliable and efficient manner.
For more information, contact:
Kathryn Sandoe, Communications Manager
Lancaster County Solid Waste Management Authority
(717) 735-0188
ksandoe@lcswma.org.
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