Costain gets first cheque in power plant pay row

Grant Prior 12 years ago
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Costain has finally received a £2.6m stage payment from the main contractor on the £350m Belvedere energy-from-waste plant in London.

Costain confirmed to the Stock Exchange this morning that it had received the delayed first payment for its £120m subcontract  which was originally due on December 10.

Costain warned earlier this month that £22m in outstanding payments were in doubt after main contractor AE&E Inova said its Swiss parent company had entered administration.

But AE&E has now been rescued by a new owner and Costain has secured the first stage payment.

The firm said: “In a letter, dated 20 December, to their customers, suppliers and partners, AE&E Inova has confirmed that they have completed and legally approved the Stock Purchase Agreement for AE&E Inova AG, and that their new owner is Hitachi Zosen Corporation.

“Costain is also pleased to confirm that the £2.6 million sub-contract stage payment due to Costain on Friday 10 December has been received.

“We welcome these positive developments and look forward to maintaining our constructive relationships with AE&E Inova and Cory Environmental, for whom the Belvedere facility is a development project.”

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