Manchester PFI deal cancelled!
Greater Manchester Waste Disposal Authority (GMWDA) has told Viridor that it is terminating its long-term waste contract.
The decision to scrap the £3.8bn deal followed “financial challenges due to prolonged austerity”.
At a meeting held on Wednesday 26 April 2017, the GMWDA agreed to terminate its waste and recycling contract with Viridor.
There are provisions in the contract for compensation to be paid to Viridor on termination.
The company said the book value of Viridor’s investment in the Greater Manchester project at 31 March 2016 was £72.3m, with Viridor share at £36.8m
Paul Ringham Viridor’s commercial director said: “We are obviously disappointed by the decision by the GMWDA. We’ve been working with the authority since 2009, helping to transform waste across the north-west of England, which has included investing £631m in the region. “Despite the success of the model and the substantial progress we’ve made together, we recognise the significant impact of enhanced and prolonged austerity on this particularly ambitious and complex contract, and the financial challenges faced by the nine partner councils.