THE fate of Newport’s incinerator plan could become clearer this week with an indication of whether it or a project in Cardiff will get a £1.1 billion waste contract.

Prosiect Gwyrdd, a coalition of five South Wales councils including three Gwent authorities, is due to announce which firm it would prefer to process non-recyclable waste on Friday.

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.

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 Llanwern steelworks.

The incinerator was refused planning permission last year by the city council’s planning committee. The firm has appealed and an eight-day planning inquiry will take place on July 9.

The Welsh Government will have the final decision on deciding whether the site gets planning permission or not – with Environmental Minister John Griffiths ruled out from deciding on the appeal as the site is in his constituency.

Newport, Monmouthshire and Caerphilly are among the authorities involved in the Prosiect Gwyrdd collaboration.