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Costs soar by an astonishing 60% at Glasgow EfW plant

By James Gray on March 30, 2018 in Latest News

Costs at an energy-from-waste plant in Glasgow are now nearly 60 per cent over budget.

Interserve was removed from the project in November 2016 by Viridor.

The scheme is now £95m over the original £155m budget, and Viridor are now aiming to recover costs from Interswerve.

Viridor’s Glasgow energy-from-waste scheme was initially budgeted at £155m.

Viridor parent company Pennon said in a trading update this week: “Completion of the construction has required a somewhat higher level of remediation than previously anticipated following the need for contractor change.

“Overall expenditure is expected to be £95m higher than the original £155m target.

“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.”

An Interserve spokesperson said: “It is not our place to comment on how much it will cost or how long it will take Viridor to complete the facility compared with our own reasonable expectations.”

Interserve won the contract in 2012 but were axed four years later after Viridor claimed they “continually and repeatedly failed to meet delivery milestones”.

Doosan Babcock was brought in to finish the job in February last year.

The scheme, which originally had a completion date of March 2017, is currently in the final commissioning phase.

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James GrayView all posts by James Gray