AnaeCo is expecting to break ground on stage 2 of its DiCOM alterative waste treatment plant in Perth by November. It has just been issued an environmental Works Approval, though financing remains a challenge amid the global financial crisis.

The finance is being handled by majority equity owner, Palisade Regional Infrastructure Fund (PRIF), which has advised AnaeCo that raising bank debt for the project in the current economic climate is proving challenging. However, PRIF is evaluating financing the project during construction by applying its own equity resources.

Commencement of construction of Stage 2 of the Western Metro Regional Council’s facility has moved a step closer with the WA Department of Environment and Conservation issuing the works approval without modifications.

AnaeCo MD Tom Rudas said “the granting of the works approval for Stage 2 comes on the back of advice from the WA Environmental Protection Authority that overall environmental impact of the proposal is not so severe as to require formal assessment by the EPA.

“We believe this is largely due to the advanced design features of the DiCOM System and successful operation during Stage 1, where the environmental performance of the DiCOM System was subjected to high levels of performance review and significant operating data was gathered.”

Stage 2 is essentially an expansion of Stage 1, so the works approval has been issued with general conditions in line with the initial approval, meaning no requirement for modifications to the Stage 2 design.

Remaining matters to be ticked off before construction can commence are planning approval from the WA Planning Commission. An application was submitted in March 2010 and the company says community consultation has been completed without issue. It is forecasting planning approval in August 2010.

Engineering design was completed in April 2010 and tenders are ready to go. They will be issued immediately following finance approval, which AnaeCo hopes will allow a construction start date of November.

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