£700m waste project for Manchester

The Sunday Times
March 8, 2009
Dominic O’Connell and Danny Fortson

MANCHESTER is close to clinching a deal to build a £700m waste-to-energy scheme that will be the largest of its kind in Europe.
Lenders to the much-delayed project are putting the final touches to financing agreements, with some sources expecting an announcement this week.
Four banks – Bank of Ireland, BBVA, Lloyds and Sumitomo Mitsui – are providing the bulk of the funds, with additional contributions from the Greater Manchester Waste Disposal Authority and the European Investment Bank, according to Reuters Project Finance International, the authoritative industry newsletter.
The scheme will be operated by Viridor, the waste-management arm of the Pennon utility group, which is working in a joint venture with Laing. The pair have a 25-year concession, which they expect will generate more than £3 billion in turnover over the life of the deal.

When the project is running, 1.3m tonnes of waste a year will be processed, with some of the energy going to fuel a power station specially built for Manchester.
The plant will be built and operated by Ineos, the private chemicals group, which will use the heat for its petrochemicals complex.