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£3bn PFI waste contract on track for Greater Manchester

Europe's largest waste private finance initiative contract is on track to begin construction of key facilities. Greater Manchester Waste Disposal Authority (GMWDA) confirmed it was close to agreeing the terms of a 25-year, £3bn deal with preferred bidder Viridor/Laing Consortium.

Due to be officially confirmed on 29 April, the deal will see waste contractor Viridor and private finance developer John Laing deliver £330M of waste facilities.

The consortium has already signed a £7M advance works order with Costain. The order will enable the contractor to begin detailed design work of five mechanical biological treatment (MBT) plants, two materials recovery facilities, four in-vessel composting plants, five transfer loading stations and 17 waste recycling centres (NCE 31 January 2008).

GMWDA clerk Andrew Kilburn said: "I am delighted that the Authority has reached this further significant stage for Greater Manchester, bringing a world-class waste service to the region and setting a European record in the size and scope of the contract."

Once construction works are completed, Viridor/Laing will be responsible for the running of 45 facilities for the treatment of municipal waste across 28 different sites.

Back in January 2007, GMWDA chairman Neil Swannick said he wanted to make sure that the MBT plants would be completed by 2010 to ensure that Landfill Allowance Trading Scheme (LATS) requirements.

By 2010 the LATS targets dictate that local authorities must reduce the amount of waste sent to landfill by at least 75% of 1995 levels.
This would bring the total amount of waste in England going to landfill down to 11.2Mt.

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