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GMWDA and Cumbria Still to Announce PFI Deal as Financial Year Closes

The Waster was hoping to hear that the Greater Manchester Waste Disposal Authority and Cumbria have completed their PFI deals, but time to achieve the goal of signing within the 2008/9 financial year is fast evaporating. Here is what the New Civil Engineer magazine was saying back in February:

Manchester waste PFI deal to be done by end of month

Europe’s largest waste management contract, the £3.3bn Greater Manchester waste PFI, will be finalised by the end of the month, an insider on the project has claimed.

The source said the banks involved in the 25 year contract were close to agreeing the struc­ture of the finance.

A joint venture between infrastructure investor John Laing and waste contractor Viridor was originally named as preferred bidder by client Greater Manchester Waste Disposal Authority (GMWDA) in January 2007.

But the complexity of the deal and increasingly difficult lending conditions caused by the credit crisis have meant that every deadline for the project has so far been issed. Last December GMWDA predicted that the deal would be wrapped up by Christmas 2008 (NCE 4 December 2008).

I think that many are waiting anxiously to see these signings go through. The industry needs this vital re-assurance that the banks are still able to put together a deal of this size, are lending, and that the credit crunch has done its worst… (The Waster)

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