Costain pulling out of Greater Manchester waste PFI contract
Construction and engineering company Costain is cutting its losses amounting to about £15m by pulling out of its Greater Manchester waste PFI contract with operator Viridor Laing (Greater Manchester).
The Greater Manchester Waste Disposal Authority says that while it is intending to transfer ownership of VLGM to GMWDA, the operation of the waste facilities will remain with Viridor Waste (Greater Manchester) in a run off contract whilst services are re-procured with an intended start date of April, 2019.
Costin is now preparing to end its activities ready for a hand-over in several weeks’ time, according to Construction Enquirer.
Costain has admitted mounting losses on the legacy waste facility contract awarded 10 years ago, providing 46 facilities across 23 locations.
It had been hit by design problems and the collapse of a subcontractor TEG which was providing compositing facilities,
As a result, it vowed in 2014 to pull out of bidding waste sector projects altogether.
Last year, Costain revealed a £15m loss in relation to completing the legacy PFI contract.
GMWDA said earlier this year that it planned to exit its £3.8bn, 25-year PFI contract with operator Viridor Laing joint venture, citing mounting frustrations about repair works and value for money.