AIM-listed organics recycler TEG group has been given the go-ahead to build the fourth in-vessel composting facility for the Greater Manchester Waste Disposal Authority (GMWDA).
The news follows TEG’s recent decision to place shares on the market in a bid to raise £3.8m, following late payments in its GMWDA agreement with lead contractor Viridor. Delays in building the fourth facility worth £13m contributed to cash flow restrictions (See MRW story).
Now, it has received the delayed Instruction to Proceed (ITP) on the plant from Viridor. It was originally scheduled for the end of 2010 but the severe weather over the winter months postponed it.
A construction programme is still to be agreed but TEG said it will secure prices by placing orders with its sub-contractors by early July 2011. Construction is expected to begin in the second half of 2011.
TEG chief executive Michael Fishwick said: “We are delighted to have received the ITP and that we can move into the project delivery phase. We look forward to continuing to work with all the parties involved in this flagship project.”