John Laing Group plc Update on Manchester Waste (9518D)
May 02 2017 - 11:11AM
UK Regulatory
TIDMJLG
RNS Number : 9518D
John Laing Group plc
02 May 2017
2 May 2017
Update on Manchester Waste
The Greater Manchester Waste Disposal Authority (GMWDA) today
published minutes of a meeting held on 26 April 2017 which refer to
a future intended termination of the Recycling & Waste
Management Private Finance Initiative (PFI) Contract. This contract
relates to Manchester Waste VL Co (the VL Co project company),
which is jointly owned by John Laing and Viridor. Manchester Waste
TPS Co, which is jointly owned by John Laing, Viridor and Inovyn,
is contractually linked to Manchester Waste VL Co.
As stated in John Laing's 2016 results issued on 7 March 2017,
if the GMWDA were to seek to take the VL Co project into public
ownership (through termination or otherwise), then the VL Co
project company would expect appropriate compensation to be paid to
all stakeholders. Any other outcome would be strongly defended.
There are provisions in the PFI Contract which allow for
compensation to be paid on termination.
Both Manchester Waste projects have been operational for two
years and the VL Co project company has been achieving diversion of
landfill ahead of contractual requirements. Both project companies
continue to work with the GMWDA.
John Laing continues to believe there will be a satisfactory
resolution with the GMWDA and is working with its co-investors and
the project companies to protect the value of the equity in the VL
Co project and also to minimise any impact on Manchester Waste TPS
Co. Taken together, the fair value of the two investments
represented 8% of John Laing's investment portfolio of GBP1,176
million at 31 December 2016; in valuing the two investments, care
was taken to anticipate a number of potential outcomes. In
addition, like all John Laing's investments, the two investments
are made on a non-recourse basis.
ENDS
Enquiries:
John Laing - 0207 901 3200
Patrick O'D Bourke, Tom Randell
Maitland - 0207 379 5151
James Isola
This information is provided by RNS
The company news service from the London Stock Exchange
END
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