Main contractor on Belvedere facility misses stage payment due on Friday

The main contractor on the Belvedere waste-to-energy facility has missed its £2.6m stage payment to Costain, which was due on Friday 10 December.

Costain had warned earlier this month that AE&E Innova owes it £22m in revenue that has already been booked.

AE&E Innova hit problems at the end of last month when its parent company AE&E Group  filed for insolvency proceedings. AE&W Inova still continues to trade.

In a statement to the City this morning Costain said: ”AE&E Inova is continuing to trade and has advised Costain that in relation to their search for a new investor it has “binding offers from well-known strategic investors”. In addition they have indicated that “they are working to an aggressive timetable” and “are confident that they will now be able to secure their future”.

“Under the Belvedere sub-contract, the £2.6m stage payment due to Costain on Friday 10 December has not yet been received. Costain is maintaining an active dialogue with AE&E Inova as the Swiss-based company seeks to secure its future and meet its obligations and, in addition, Costain continues concurrent and positive discussions with Cory Environmental, for whom the Belvedere facility is a development project, regarding payments and completion of the project.