Greater Manchester Waste Authority terminates its contract 17 years early

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Greater Manchester Waste Authority (GMWA) has terminated a twenty five year contract after just eight years with Viridor Laing (Greater Manchester) Limited (VLGM).

The contract which at the time was one of the biggest Private FinanceInitiative contracts signed   triggered a £631 million construction programme and created a network of 42 recycling, composting and waste management facilities across Greater Manchester. 

The reasons behind the decision to terminate the contract are as yet unclear.

In a statement the GMWDA told us the following

“The Greater Manchester Waste Disposal Authority (GMWDA) can confirm that at the Authority meeting held on Wednesday 26th April 2017 it agreed to terminate its Waste and Recycling (PFI) contract with Viridor Laing (Greater Manchester) Ltd. The decision allows for delegation for officers to progress termination. At this time we are unable to comment further.”

In a statement on the website of the Pennon Group, the parent Company of the Virador Group says that the Greater Manchester Waste Disposal Authority (GMWDA) continues to face financial challenges due to prolonged austerity.
It adds that “following  a GMWDA meeting held on 26 April 2017, the waste authority has now confirmed it is seeking an exit from the Recycling & Waste Management Private Finance Initiative (PFI) Contract. This Contract relates to Viridor Laing (Greater Manchester) Limited.”

It adds that discussions and negotiations are now expected to progress over the coming weeks as we work with GMWDA to ascertain the implications. 

There are provisions in the PFI Contract for compensation to be paid to Viridor and John Laing on termination.

GMWA facilities deal with over 1.1 million tonnes of waste collected each year from over 1 million households in Bury, Bolton, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside and Trafford.