Contractor receives £2.6m and assurances from AE&E Inova

Contractor Costain has received its missing £2.6m payment for work on the Belvedere waste-to-energy plant from struggling main contractor AE&E Inova, it said today.

Costain said it had been assured by AE&E, part of which went into administration in Austria two weeks ago, that it had now been purchased by the Hitachi Zosen Corporation and was able to carry on trading.

Costain was owed £22m by the firm for work it had already carried out, and last week the first £2.6m instalment of this payment was missed. In a statement it said: “In a letter, dated 20 December, to their customers, suppliers and partners, AE&E Inova has confirmed that they have completed and legally approved the Stock Purchase Agreement for AE&E Inova AG, and that their new owner is Hitachi Zosen Corporation.

“Costain is also pleased to confirm that the £2.6 million sub-contract stage payment due to Costain on Friday 10 December has been received.”

It added it looked forward to maintaining a “constructive relationship” with AE&E Inova over the plant.