GMWDA Confirms Progress On Its PFI Project
Greater Manchester Waste Disposal Authority and Viridor Laing are committed to achieving financial close, the main commercial aspects of the contract have been agreed and the Funders are now in their credit approvals processes, which are scheduled to take approximately 3 to 4 weeks.
The current upheavals in the national and international economic markets have impacted directly on our project. However, the majority of the funding for the Greater Manchester world class waste solution has already been secured through strong collaborative activity, during these current challenging economic conditions. This includes a capital contribution of £70 million from the Authority in respect of additions that have been made to the works originally procured. The balance is subject to the credit committee approvals by the commercial banks.
Councillor Swannick, Chair of the Greater Manchester Waste Disposal Authority said, “We are ready to sign the contract as soon as the Banks have completed their processes of approval. We have a timeline from the Sponsors and Funders with milestones in place for close. Sponsors and Funders are working with the Authority to achieve close at the earliest opportunity”.
The Authority meeting of the 21st November was to review progress to close. Members, who were appraised of the current position and strategy, were supportive of the process designed to achieve an early close.
He added “this is the largest waste services contract to be let in Western Europe, the complexity of the project and sheer volume of the documentation, coupled with the unforeseen credit crisis, some delay is not unexpected. Indeed it is normal for many major contracts of this size and duration to experience some date changes. Our focus is ensuring that we reach the earliest possible close and that we then set out about the real task with Viridor Laing of implementing a world class waste management solution for the residents of Greater Manchester”.
NOTES FOR EDITORS
GMWDA is the largest of six English waste disposal authorities that were created under the Local Government Act 1985. GMWDA provides waste disposal services for over 958,000 households in Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside and Trafford. It handles around 5% of national municipal waste.
The Authority is in the later stages of the procurement of a 25-year waste services contract using the Private Finance Initiative (PFI). In January 2007 the Authority appointed the Viridor/Laing consortia as its Preferred Bidder. The Authority has subsequently provided details of the emerging technical solution and new infrastructure (see Related Press Releases at: www.gmwda.gov.uk).
For further information please call Pamela Taylor, Communications Manager on 0161 770 1721.