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Orgaworld GM says it would cost $56 M to break contract

Calling in to CFRA Wednesday afternoon the general manager of Orgaworld, Dale Harley, said there are misconceptions that need to be set straight.

Harley said, for starters, Orgaworld is capable of processing 100,000 tonnes of organic waste each year, something they've proven by meeting targets over the past three months.

He said any shortfall has been because the city isn't sending the same amounts of waste each month, adding the volume is sometimes in the range of 2,200 tonnes a month.

He also said it would be more expensive for the city to break the existing contract than the city manager is letting on.

"Kent Kirkpatrick is quoting something like $8-10M to get out of the contract. That would be true if we were 15 years into this contract. When we're five years into the contract there's actually a formula term in the contract and it would actually cost the city in excess of $56 M," he said.

He said what is lost in this debate is that Orgaworld invested $25M of its own money to build a facility to process the organics for the city.

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