Image: www.viridor.co.uk
Interserve owes £69m for a troubled waste-to-energy plant in Glasgow, the parent company of its client Viridor has claimed.
Interserve was the original contractor on the energy recovery facility but was replaced by Doosan Babcock in early 2017 after delays and cost overruns.
Completion was originally scheduled for 2016 but the project is still ongoing and Viridor’s parent firm Pennon Group estimates that cumulative spend on the job is now £238m, as compared to the original target of £155m.
In its annual results for the year to 31 March, Pennon Group said: “Viridor is contractually entitled to recover incremental costs from the original principal contractor, Interserve, under certain circumstances.
“Discussions with Interserve are ongoing with regard to the contractual settlement. At 31 March 2018 a receivable of £68.7 million has been recognised.”
An Interserve spokesman said: “It’s not our place to comment on how much it woul cost or how long it will take Viridor to complete the facility compared with our own expectations.”
