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TEG secures order on first Manchester PFI contract

14th January 2008

TEG Environmental has received an Advanced Works Order to enable work to commence on the first of four in-vessel composting plants for Greater Manchester Waste Disposal Authority (GMWDA). 

The Order is for £525,000 and covers work already completed by TEG in December 2007 together with work to be undertaken in the first quarter of 2008. It covers the detailed design work for the plants to be constructed by TEG and site construction of the first plant at Waithlands in Rochdale, which is scheduled to commence in April 2008.

The TEG order follows on from an Advanced Works Order agreed between the GMWDA and preferred bidder Viridor-Laing, which is the first financial commitment by the Authority towards signing a £3 billion waste PFI contract. In turn, Viridor-Laing agreed an Advanced Works Order with Costain Limited, the company responsible for managing construction projects for the PFI contract, which prepared a corresponding Advanced Works Order for TEG as the exclusive supplier of in-vessel composting technology to Costain.

The Order has been placed now as part of a commercial contract process to prevent further delays to the installation programmes. Work will now proceed to schedule in advance of Financial Close, which is projected to be in March 2008.

TEG, Chief Executive Mick Fishwick said: "The conclusion of the Advanced Works Order is a very significant step forward in the development of the Greater Manchester PFI contracts and it allows us to proceed to the revised schedule."

"It shows the commitment all parties have in ensuring the PFI process is completed and in ensuring there is no undue delay in bringing key facilities on line in time to meet GMWDA's recycling obligations."

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