Manchester PFI contract to end this week

Greater Manchester Waste Disposal Authority (GMWDA) is on track to terminate its Private Finance Initiative contract with Viridor Laing at the end of the week.

Yesterday (26 September), a spokesperson for the authority confirmed the contract is still due to be concluded on 29 September. The spokesperson said that negotiations are ongoing and was unable to disclose any information regarding the provision of the service after this date.

The news comes as Pennon Group – the parent company of waste and resources firm Viridor – announced that progress is being made on the final agreements relating to the contract.

In April this year, the Greater Manchester Waste Disposal Authority (GMWDA) voted to end the waste and recycling private finance initiative (PFI) contract with Viridor Laing Greater Manchester (VLGM) (see story).

And, in August, GMWDA said it would be exiting the contractual arrangements by “acquiring VLGM via a negotiated settlement for £1. As part of the arrangements GMWDA will be paying back outstanding bank loans at full value.”


GMWDA – which describes itself as England’s largest waste disposal authority – signed the long-term waste contract with Viridor Laing in 2009 at a value of £3.2 billion over the course of its 25-year lifespan.

Pennon Group’s comment came in its latest trading statement, ahead of its results for the half year ending 30 September 2017, which will be announced at the end of November.

The company also said it is on track to deliver in-line with management’s expectations across both its water and waste businesses.

And, at Pennon Group’s Glasgow Recycling and Renewable Energy Centre , the energy recovery facility remains on schedule to enter final commissioning by the end of 2017.

In terms of outlook, the company said: “Pennon continues to deliver a robust underlying financial performance for 2017/18. With our clear strategy and strong balance sheet, Pennon is well-placed to continue to deliver for customers, communities and shareholders.”


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