An eco-waste facility that was meant to process all black bag waste in Essex is to be demolished after "significant performance issues".
Essex County Council (ECC) confirmed the contract for the Tovi Eco Park in Basildon with UBB Waste Limited would be terminated as part of a mutual agreement.
The authority said both parties were pleased to conclude matters.
UBB said it accepted its responsibility for the situation with the facility.
The site, which stopped receiving deliveries in June 2020, was meant to handle up to 420,000 tonnes of waste but was unable to process the amount of waste sent there.
Both parties went to court in 2019 to resolve a contract dispute and a judgement was handed down in the council's favour, reports the Local Democracy Reporting Service.
Further legal proceedings began in July 2021 which resulted in settlement discussions where the decision was made to terminate the £800m contract.
In a statement, the council said: "Due to ongoing performance issues at the waste treatment facility in Basildon, Essex County Council and the parent companies of the facility's former owner and operator, Urbaser SA and Balfour Beatty Group Limited, have mutually agreed to terminate the contract, thereby settling the ongoing legal disputes."
It said it would work closely with the two companies to ensure a smooth transition to demolition and the handing back of the environmental permit.
After demolition the site will be given back to the council.
Residents would not see any difference to how their household waste was collected, the authority said, and it would review its waste management strategy and plan for how it would move away from landfill in consultation with residents.
A spokeswoman on behalf of UBB said: "UBB acknowledges that the facility did not meet the specifications set out by ECC during the procurement process and subsequently included in the residual waste treatment contract.
"UBB also accepts its responsibility for the situation with the facility and the fact that the situation was not the fault of ECC."
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