Ottawa reaches out-of-court deal to end Plasco contract

The City of Ottawa has officially severed its ties with the waste company Plasco in an out-of-court settlement, city solicitor Rick O'Connor announced in a memo Tuesday evening.

This ends a relationship that began in2012, when the city signed a 20-year, $180 million contract with Plasco to divertresidential wastefrom landfills and insteaduse it to produce electricity.

City Council approved a recommendation to terminate its relationship with Plascoon February 25, after the company obtained a court order to protect itself from creditors.

In January 2015, the cityput out a call for other waste companies capable of handling household garbageafter Plasco missed its final deadline to provide plans for a waste-to-energy plant.

Plasco had been given until Dec. 31, 2014 tosecure financing for a proposed plant,after missing two previous deadlines.

On mobile? Read Rick O'Connor's memo here.