THE firm behind Newport's incinerator plan will find out this afternoon whether it will be awarded a £1.1 billion waste contract.

The Prosiect Gwyrdd consortium will announce in Cardiff whether it prefers the Newport plan or a scheme in Cardiff to burn non-recyclable waste.

Two companies are in the running for the 25-year deal, both offering facilities that will burn the waste – Viridor in Cardiff and Veolia at Newport's Llanwern Steelworks.

But it could be that a Welsh Government minister has a final say on whether the Llanwern incinerator gets built, with a member of the cabinet to rule on whether it gets planning permission following an inquiry due this summer.

Veolia would need both the contract from Prosiect Gwyrdd and planning permission to go ahead with the scheme, which could see heat and power supplied to the Llanwern steelworks.

The French company's plans were frustrated at Newport council, with the authority's planning committee refusing to give it planning permission amid fears it could turn a nearby housing development into a ghost estate.

The refusal came after protests by the Stop Newport Incinerator Campaign – more than 1,000 people signed a petition against the move.

However Veolia has appealed and an eight-day planning inquiry will take place in Newport Civic Centre, starting July 9.

A Welsh Government minister will have the final decision on whether the site gets planning permission or not – with environmental minister John Griffiths ruled out from being involved as the site is in his constituency.

Newport, Monmouthshire and Caerphilly are among the authorities involved in the Prosiect Gwyrdd collaboration of five Welsh councils.