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Costain reassured over Belvedere scheme

Costain has received assurances from struggling contractor AE&E Group over £22 million it owes for works carried out on the Belvedere energy-from-waste facility project in London.

In a statement to the City, Costain said it has been advised by the board of AE&E Group that it had “ratified a concept and structure that ensures the continuation of on-going projects until a new investor is secured.”

It added: “The concept includes bridge loan and bonding lines which carry us through the period needed to close with an investor.”

The firm said that discussions with banks had been “reassuring” and a number of investors had expressed “great interest”.

Costain is a major sub contractor on the £350m job run by AE&E Group subsidiary AE&E Inova.

It announced on Monday that the work carried out exceeded the cash received by £22m and admitted it was uncertain AE&E Inova would make all future payments after filing for insolvency.

The next stage payment, for £2.6m, is due by 10 December and AE&E Inova has confirmed that it intends to make that payment.

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