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Greater Manchester’s £3.8 billion PFI Contract Signed at Last!

PFI is the first to be helped by the UK Treasury to get a PFI Integrated Waste awarded since (Wednesday 08 April 2009 News), and it is a massive contract.

This will encourage the UK waste industry to see that these types of contract are beginning to move again since the dire effects of the started last summer.

The following is from the LetsRecycle News item:

Greater Manchester’s £3.8 billion PFI contract with Viridor was the first to be pushed through by a new set up to help projects struggling in the current financial climate, it emerged on 8th April.

The – which is lending £182 million to the project – has revealed that the Treasury’s Unit set up last month helped the deal reach financial close this week (see letsrecycle.com story). The project was the first to be assisted in this way.

The details came as the revealed the full breakdown of funding received for the project, from a variety of banks and government sources.

The EIB said: “ ‘s Infrastructure Finance Unit has joined that syndicate of and the EIB to enable the Greater Manchester Waste Disposal Authority’s PFI scheme to achieve financial close. The Unit was established recently to enable which will create jobs and deliver to proceed.

“This is the completed by the unit,” it added.

The EIB explained that the £182 million it was lending to the project would be split between Viridor Laing and Runcorn TPS. Viridor will receive £100 million to treat municipal waste provided by the Manchester authority, including the production of solid recovered fuel from waste. Runcorn TPS will receive £82 million to incinerate the solid recovered fuel.

The bank explained that further financing would be provided by other banks, including £95 million from the , £55 million from Spanish-based bank BBVA, £55 million from Lloyds Banking Group and £40 million from Japanese-based bank SMBC.

Simon Brooks, EIB vice president responsible for lending activity in the UK, said: “We are delighted to help this landmark project. Not only will Greater Manchester residents see the environmental benefits of the project in their daily lives, but the project represents an important step for the UK on the road to meeting national and EU-wide waste and recycling targets.”

The EIB said that Greater Manchester PFI project was expected to contribute directly to the UK’s commitment to achieving 50% recycling/composting and a 65% diversion from landfill by 2020 in accordance with EU requirements. The EIB said this was of particular importance for Greater Manchester which is the largest of England’s six statutory waste disposal authorities, accounting for five percent of national waste.

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