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Viridor Loose £3 Billion PFI Contract With Greater Manchester

Viridor loose £3 billion PFI contract with Greater Manchester

Photo: Graham Richardson/ Wiki Commons

In May 2017 the Manchester Evening News reported that Viridor has lost a £3 billion Private Finance Initiative (PFI) contract 17 years early!

Greater Manchester Waste Disposal Authority (GMWDA) signed the 25-year private finance initiative deal with the Viridor Laing consortium in 2009, which was expected to bring thousands of jobs to the region at new and refurbished waste-processing plants but they have confirmed that the contract will be terminated but no date has been given as yet.

As part of the deal with GMWDA, Costain was handed a £397m subcontract in 2007 to design, construct and commission 46 waste facilities across Greater Manchester, however these works have been beset with problems, including rectification work on a number of facilities across the contract.

In February GMWDA revealed it has raised concerns with Viridor Laing over the progress being made on these works, including “significant rusting issues” in the mechanical and biological treatment plant tanks and the in-vessel composting facilities.

The report also revealed volumes of waste were now lower than expected when facilities were proposed in 2006-07 and that the Greater Manchester contract was expensive compared with current market rates.

We will bring you more news as it becomes available.