Costain continues to be plagued by issues on its troubled Manchester PFI waste deal after the client raised concerns over repair works being carried out through the contract.
The contractor signed a deal in 2007 to design, construct and commission 46 waste facilities across Greater Manchester – but the work has been beset with difficulties.
In August 2016, Costain reported it had incurred losses of £11.4m from the contract.
Chief financial officer Tony Bickerstaff told Construction News at the time that the company was confident the contract would be completed in early 2017.
Now a report from key figures at the Greater Manchester Waste Disposal Authority – including its director of contract services – has said the time taken to complete rectification works through the contract had been “significant”.
The report said rectification works were taking place due to significant rusting issues in the mechanical and biological treatment facility tanks and in the in-vessel composting facilities.
“Time taken to complete these works is however significant, and concerns over progress and longevity of repairs have been raised with Viridor Laing (Greater Manchester),” it added.
GMWDA’s agreed a 25-year private finance initiative with Viridor Laing in 2009 to process the authority’s waste. The JV appointed Costain to the design, build and commission deal.
All 46 waste plants were completed and handed back by Costain in January 2015 but it was later found that rectification work still needed to be done.
Mr Bickerstaff announced in August 2014 that Costain would exit the waste sector.
Costain declined to comment.
Viridor Laing (Greater Manchester) has been contacted for comment.