The Southampton-based company confirmed that looking to the Treasury's Infrastructure Finance Unit, which was set up in March 2009 to provide loans for struggling PFIs (see letsrecycle.com story), was still a possibility after The Observer claimed at the weekend (Sunday May 10) that the unit was “poised” to provide up to £30 million for the project.
Commenting on whether VT Group would look to try to involve the Treasury unit, a spokesman for the company told letsrecycle.com: “It remains an option, but we've not held any detailed discussions.”
Wakefield council was not willing to comment on the progress of the PFI deal.
Preferred bidder
VT Group was named as preferred bidder for the Wakefield deal, which will involve it providing treatment facilities for up to 200,000 tonnes-a-year of residual waste, in June 2008 (see letsrecycle.com story).
At the time, the council said the aim was to finalise the deal in summer 2008, but, despite VT Group winning planning permission for the anaerobic digestion and autoclave development that will form the centrepiece of the project (see letsrecycle.com story), financial close is yet to be reached.
Having named a preferred bidder, Wakefield is further advanced than any other unsigned waste PFI along the procurement process, and it is believed this could move it towards the list of those eligible for Treasury support.
However, a spokesman for Defra, which is responsible for the waste PFI programme, said: “There are no discussions between Defra and the preferred bidder.”
The Treasury has refused to comment on specific projects, but a spokesman explained that: “PFI projects with a capital value of £8 billion are expected to reach financial close over the next year.
“The Treasury will co-lend with banks on the same commercial terms where it can bring closure to projects in the pipeline. All PFI projects are eligible for consideration,” he added.
The sole PFI to benefit from the Treasury unit's loans to date has come from the waste sector, with Greater Manchester's much-delayed deal with Viridor-Laing receiving a £120 million loan to achieve financial close last month (see letsrecycle.com story ).
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