Firm still battling to complete two schemes in Derby and south Wales
Interserve鈥檚 clients on two unfinished Energy from Waste jobs have said the firm鈥檚 collapse into administration earlier this month has added more uncertainty to the schemes.
Interserve went into a prepack administration after losing close to 拢230m on EfW jobs since 2016, with the group鈥檚 businesses transferring to a private company, Interserve Group Limited, owned by its creditors minutes later.
The company has told staff and customers it continues to operate as normal but it is yet to make an official announcement under its new ownership except to confirm the change.
Now the clients on the contractor鈥檚 final two EfW projects have said Interserve鈥檚 administration has added more uncertainty to the schemes.
Interserve is still working to hand over the two unfinished EfW jobs it is developing through JVs - a complex in Margam with Babcock and Wilcox and a plant in Derby with joint venture partner, waste management firm Renewi.
A spokesperson for Glennmont Partners, an asset manager and client on the Margam job, said: 鈥淚t is not 100% clear that [Interserve鈥檚 administration] shall have any impact on Margam, however contingency arrangements are in place to address the foreseeable outcomes.鈥�
He confirmed Glennmont still expects the project, originally due in 2017, to finish by July this year but said the firm would 鈥渂e using the mechanisms available to it, including within the [lump sum contract], to seek recompense for the delay to its completion鈥�.
In Derby, Interserve and Renewi have been commissioning the incinerator since January last year but the joint clients recently threatened to terminate the contract if it was not finished soon.
A spokesperson for Derby City Council and Derbyshire County Council said: 鈥淚nterserve entering administration is clearly a concern but not unexpected as we had been monitoring the company鈥檚 financial situation for some time.
鈥淚t鈥檚 too early to say what this will mean but both councils remain committed to moving it to full operation and we鈥檒l be monitoring the situation closely over the coming weeks.鈥�
A spokesperson for Renewi said: 鈥淚ntensive discussions have been underway for a number of months between the stakeholders as to how best to commission the Derby and Derbyshire Waste Treatment Centre under a range of scenarios.鈥�
Interserve has been contacted for comment.
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