Viridor has chosen Doosan Babcock to take over the contract for an energy-from-waste plant in Glasgow after Interserve was removed from the project last year.
The developer brought in Doosan Babcock for the multi-million-pound engineering, procurement and construction contract on the Glasgow Recycling and Renewable Energy Centre.
Interserve was hit with a termination notice by Viridor last November after being found to have “continually and repeatedly failed to meet delivery milestones” on the plant.
A trading update posted by Viridor’s parent company Pennon this morning said it was currently finalising an assessment and project plan with Doosan Babcock to complete the scheme.
The £155m Glasgow project was initially expected to complete in March this year.
Interserve announced in May 2016 that problems in the design, procurement and installation at the plant were expected to lead to a £70m exceptional cost.
This led to Interserve pledging to exit the EfW sector after it posted losses of £34m for the half-year ending 31 June 2016.
The Glasgow plant was the second EfW contract the company had been removed from after it had its EPC deal cancelled on a project in the West Midlands.
In August 2015, EPC contractor Hitachi Zosen Innova “ended its contractual relationship” with Interserve after significant delays to the work being carried out at the £120m EnviRecover plant near Kidderminster.
Interserve last month warned of a “disappointing performance” in UK construction in its forthcoming full-year 2016 results.