Viridor parent water company, Pennon, this morning revealed that the facility and two others at Beddington and Dunbar were all now processing waste with operations due to ramp up over the next 18 months.
It warned that completion of construction of the Glasgow Recycling and Renewable Energy Centre had required a higher level of remediation and expenditure than predicted.
Interserve had its contract on the job terminated in late 2016 when it was replaced by Doosan Babcock.
“This has been driven by the high level of non-conformances that have required rectification for work performed by our previous engineering, procurement and construction contractor, said Pennon.
“Viridor is contractually entitled to recover incremental costs from Interserve, under certain circumstances. Discussions with Interserve are ongoing with regard to the contractual settlement.”
Pennon said the gross receivable was £72m, after taking into account an assessment of market indicators of credit risk for the EPC contractor, a provision of £8m has been recognised resulting in a net receivable of £64m at 30 September 2018.
Further possible recoveries on the waste project remain contingent on future facility performance.
