Pennon Group PLC PNN Viridor signs contract with South London Waste

  Pennon Group PLC (PNN) - Viridor signs contract with South London Waste

RNS Number : 3869Q
Pennon Group PLC
06 November 2012




25 Year South London Residual Waste Treatment Contract signed 5 November 2012

Pennon Group Plc is pleased to announce that its subsidiary, Viridor South
London Limited, has signed the 25 year South London Waste Treatment Services
Public Private Partnership (PPP) contract with the South London Waste
Partnership (hereafter noted as 'The Partnership') - which comprises the
London Boroughs of Croydon, Kingston, Merton and Sutton.

The contract requires the treatment of The Partnership's residual municipal
waste through the financing, construction and operation of a new Energy
Recovery Facility (ERF) at Viridor's landfill and recycling site in
Beddington, Sutton. The contract requires the treatment of around 200,000
tonnes per annum of waste and is designed to achieve around 92% landfill
diversion.The ERF will have additional capacity to treat around 75,000 tonnes
of commercial and industrial waste and will have a power generation capacity
of 26 megawatts of electricity.

The contract is subject to Viridor's gaining planning permission to build the
plant. Viridor submitted a planning application to the Local Planning
Authority (London Borough of Sutton) in August 2012.

The project requires capital investment of approximately £200 million by
Viridor and the plant will be built by Lagan-CNIM as the EPC Contractor.
Viridor's investment is to be financed from internal funds as required. It is
expected to be earnings enhancing in its first full year of operation.

Colin Drummond, Chief Executive of Viridor, said:

"The Beddington ERF in south London will make a major contribution towards
the Capital's ambitions to achieve self-sufficiency in waste treatment and to
maximise renewable energy generation. It is a further important step in the
roll out of Viridor's PPP pipeline and represents a key part of Viridor's
growth strategy."

A conference call on this announcement with Colin Drummond will be held at
09.00am on Tuesday, 6 November 2012. Dial in details are:

+44 (0) 20 3003 2666 - Standard International Access
0808 109 0700 - UK Toll Free

Password : Pennon

For further information please contact:

Colin Drummond, Chief Executive, Viridor - 01823 721431

Edward Jackson, Group Financial Controller, Pennon Group- 01392 443059

Sara Evans / Sarah Heald, RLM Finsbury - 0207 251 3801

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


CNTBKADKKBDKDDK -0- Nov/06/2012 07:00 GMT
 
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