Infrastructure specialist Costain has said negotiations are continuing towards a settlement of the problematic PFI contract with the Greater Manchester Waste Disposal Authority (GMWDA).
The authority announced in this May that it intended to terminate its £3bn, 25-year, PFI waste processing deal with the Viridor Laing joint venture, for which Costain is acting as subcontractor.
In a trading update ahead of half-year results, the firm said discussions with the GMWDA and Viridor Laing were continuing.
The contractor added that a further announcement would be made ”as appropriate”.
As part of the deal, Costain won a £397m subcontract to design, construct and commission 46 waste facilities across Greater Manchester.
But the works have been beset with problems and Costain incurred losses of £15.1m in its H1 2017 results.
- A version of this article first appeared on the website of our sister title Construction News.