Greater Dandenong councillors have deferred their vote on a multi-council proposal for a waste-to-energy plant in the South East.
The expected vote on Monday 28 March has now been pushed out a month to 26 April.
Greater Dandenong is among the last of 16 original member councils to decide whether to commit to a pre-tender contract with South East Metropolitan Advanced Waste Processing (SEMAWP) Pty Ltd.
The contract commits the member councils to supply a “minimum tonnage” of waste for 25 years to a waste to energy plant at an “unconfirmed” location.
Greater Dandenong mayor Jim Memeti said the decision was deferred because “not all the answers have come back” about the confidential contract.
“Councillors want a bit more time to get those answers.
“A lot of people in the community say they haven’t had an opportunity to ask questions.
“It gives them an opportunity to ask questions at the next two meetings (28 March and 11 April).”
Only seven of the 16 councils have so far committed – Bayside, Cardinia, Casey, Kingston, Knox, Whitehorse and Yarra Ranges.
A majority was needed for the project’s viability, according to a recent Glen Eira Report.
At least six councils are believed to have pulled out, including Glen Eira and Monash.
Mornington Peninsula Shire and Frankston Council have also yet to decide.
In a unanimous decision on 17 March, Mornington Peninsula councillors deferred a decision for three months, citing “substantial risks” to ratepayers.
They resolved to enquire why the State Government was not underwriting the “regionally significant waste project”.
Mornington Peninsula mayor Anthony Marsh said signing up would have been “reckless” and exposed the council and ratepayers to “unacceptable financial risk”.
The risk could involve as few as seven councils risking liability for a $700 million-plus waste-to-energy plant plus an agreed minimum tonnage waste supply for 25 years.
“It could bankrupt a bunch of councils.”
Cr Marsh told Star Journal that ratepayers appreciated that the shire brought the issue “more into the open”.
“Some asked how could it get to this point without them knowing about it.”
SEMAWP interim chair Mick Cummins – also chief executive of Bayside Council – recently told Star News that it was “anticipated” that some councils would not proceed through to award the tender.
“Councils have been given the opportunity to consider their involvement at each stage and SEMAWP Pty Ltd respects the decision of councils who have chosen to opt out of the procurement.”
The waste-to-energy plant is proposed as the solution to a looming landfill shortage for councils in the East and South East.
Hallam landfill has an expiry date of between five and eight years, according to Greater Dandenong Council.
There are no plans to build further landfills in the South East.
Last year, a permit was controversially granted by EPA and VCAT to Great Southern Waste Technologies for a waste-to-energy plant in Ordish Road, Dandenong South.
Greater Dandenong Council was opposed to the facility.
However, GCWT did not make the shortlist of tenderers for the SEMAWPP.
The shortlisted applicants are Veolia Environmental Services Australia Pty Ltd, Sacyr Environment Australia and a consortium of Pacific Partnerships and REMONDIS Australia.
