Funding issues cause fresh Manchester PFI delay

The Authority said that the contract would not be signed until Viridor Laing's bankers have approved funding but added that “significant progress” was taking place.

A spokeswoman for the GMWDA explained: “Viridor Laing and their bankers are currently carrying out their funding approvals processes. Following their successful outcome and the completion of contracts, financial close can then take place.”

It is just the latest in a series of setbacks which have held up completion. The multi- billion pound contract was originally due to be signed last June, and most recently it had been hoped that financial close would be achieved last Friday (June 6) (see letsrecycle.com story).

Commenting on the latest developments, Councillor Neil Swannick, chair of the GMWDA said: “We are pleased with the progress we've made on the commercial aspects of contract negotiations. Viridor Laing's funders are now completing their approval process. We are ready to sign the contract as soon as possible.”

Viridor Laing also claimed to be pleased with progress. Mike Hellings, managing director of Viridor Waste Management, said: “The completion of the project agreement and full documentation has been a considerable task in itself, and we are pleased with the excellent planning results to date.”

Mr Hellings commented that Viridor was still committed to closing the contract as quickly as possible. He said: “Viridor Laing remain fully committed to achieving full contractual close as soon as possible on completion of funding approval.”

The 25-year contract will provide Greater Manchester with infrastructure to recycle more than 50% of the 1.4 million tonnes of municipal waste that it produces a year in Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside and Trafford.

It is expected the contract will eventually be signed by the end of this summer.