The Greater Manchester Waste Disposal Authority has applied to have waste firm Sita UKs application struck out.
In September, Sita began legal action against the GMWDA after missing out on the £3.8 billion Greater Manchester Waste private finance initiative contract.
It is demanding damages for the authoritys failure to award the contract to the claimant, alleging a breach of European Union procurement regulations over transparency and equal treatment.
A Sita legal spokesman told MRW: As they have publicly confirmed, GMWDA has applied to have Sita UKs application struck out. The court hearing for the contested strike out application has been set down for a two-day hearing to take place during the week commencing 18 January 2010. Sita UK is confident that the GMWDAs application will be refused.
In response a GMWDA spokeswoman said that its position has not changed since it issued a statement in September stating that the authority was disappointed and surprised that Sita UK has commenced legal proceedings, but is confident the contract has been awarded in accordance with EU laws.
The 25-year PFI Greater Manchester waste contract reached financial closure in April 2009 with commercial lenders: the European Investment Bank, GMWDA and the Treasury Infrastructure Finance Unit supplying a debt facility totalling £582 million.
It has just opened the first major recycling facility as part of this contract in Rochdale.