The decision of whether or not to trash London’s proposed $22 million recycling facility comes down to the wire this week.

Originally approved by City council in the summer, the project has been pushed back four times due to pending funds that never materialized. The delay is causing problems for Miller Waste Systems, the facility’s contracted builders. While they have held the price at $22 million up to this point, further extensions would mean an increase in cost.

“The regional recycling facility has been part of the going-forward plan since 2007, but finalization has been delayed while we sought alternative forms of funding,” Paul Hubert, city councillor for Ward 8, said.

“The decision on Friday will be whether we find the tender to continue with the project or start all over.”

The project would be designed to handle the types of plastic packaging not currently allowed in London blue boxes. Built near the city’s current landfill, it would handle 75,000 tons annually — a significant increase from the 28,000 tons which London currently recycles through a contractor.

The proposed cost would involve $4.4 million from the industry-funded waste division of Ontario and $17.6 million from federal gas tax money. The project is estimated to reduce $200,000 a year from London’s current recycling costs.

Private sector funding has been suggested as an alternative to the current proposal, where both facility and service would be supplied together, eliminating the need to spend the city’s federal gas tax money.

“Many other communities have done it the private sector way […] that way we could keep the federal gas tax money for things like roads,” Bud Polhill, London city controller, said.

“Londoners will end up paying for it one way or another,” Hubert argued. “If we own our own facility there is the potential to save money in the long run.”

Polhill expressed concern the provincial government could change the rules of the game once the project has been approved: “In the next month or two there could be regulations that would change the whole picture, making those who are producing the packaging responsible for the cost of recycling it.”

“Whether or not the building cost will change, if we put off the project until the rules are clarified we could save $17 million — I think that’s a reasonable option,” Polhill said.

Hubert was skeptical of any change in regulation.

“Stewardship Ontario is putting forward $4.4 million — clearly the project is aligned with the direction that they are going,” he said.

The final decision will be made Friday. If approved, construction will begin this spring and the facility could be operational by spring of 2011.