The Manchester PFI waste deal which led to losses of more than £15m for Costain is to be retendered a month after being cancelled by the client.
Greater Manchester Waste Disposal Authority (GMWDA) will begin the search for firms to take on the management of waste across Greater Manchester.
In addition to waste management, the contract’s scope will include a number of construction jobs on dozens of waste sites across the North-west.
The contract will replace GMWDA’s 25-year PFI deal with operator Viridor Laing to deliver waste management services for Manchester and its surrounding areas, which was officially ended last month.
Costain served as Viridor Laing’s subcontractor under the PFI as part of a £397m design, construct and commission deal signed in 2009 for 46 waste facilities across Greater Manchester.
The contract was beset with problems, with Costain revealing earlier this year that it had set aside £15.1m in costs and provision to cover the losses on the deal.
GMWDA has said the new contract would likely be split across three lots when it is launched on 7 November.
The construction work will involve changes to a number of facilities belonging to GMWDA including 20 household waste recycling centres, eight transfer loading stations, the Bolton thermal recovery facility and a number of biowaste facilities.