Financial close on the £700million Wakefield waste management PFI has been pushed back and is unlikely to be reached before September, according to Wakefield Council.
The council selected VT Environmental Engineering Consortium as the preferred bidder to deliver the 25-year design build, finance and operate project back in November 2007. A three-strong bank club comprising of Barclays, NordLB and SMBC has been in place since last May.
Planning permission has been granted for the key site at South Kirkby Business Park, which is likely to include mechanical biological treatment technology. However, financial close has been delayed for reasons which are not entirely clear at this stage.
A Wakefield Council spokesman told MRW: “This is a complex project and we are committed to ensuring that everything necessary is in place. Financial close is expected to be around September this year.”
A representative from VT EEC said that the current economic climate has played a part in delaying the project.
He said: “We anticipate that contract closure should be in the second half of this year. Large, complex private finance initiatives inevitably take a long time to negotiate and Wakefield is not uncommon in this respect. The situation has been further hampered by the uncertain global economic situation which has adversely affected financial markets.”