Pennon, the parent company of Viridor, has reported progress in negotiations over the loss of its PFI waste contact in Greater Manchester.
The comment is made in a trading update ahead of publication of half-year results to be announced on 29 November.
Pennon’s update says that ”progress is being made on the final agreements relating to the Greater Manchester PFI contract”, presumably referring to compensation relating to the cancellation.
The Greater Manchester Waste Disposal Authority (GMWDA) concluded the acquisition of the joint venture with John Laing for £1 in August, four months after saying the PFI contract had to end because its constituent local authorities had been hit by ’austerity’ spending cuts.
When the move was announced, Pennon said: “Discussions and negotiations are now expected to progress over the coming weeks as we work with the GMWDA to ascertain the implications. There are provisions in the contract for compensation to be paid to Viridor and John Laing on termination.”
Meanwhile, the company’s Recycling and Renewable Energy Centre in Glasgow is said to be on schedule to enter final commissioning by the end of 2017.
The update statement adds: “Pennon continues to deliver a robust underlying financial performance for 2017-18. With our clear strategy and strong balance sheet, Pennon is well placed to continue to deliver for customers, communities and shareholders.”