Interserve expects to lose at least £70m on a problem waste-to-energy contract in Scotland, the company has announced.
The contractor said there had been a “a further deterioration” in the Glasgow project, which it was awarded four years ago.
“The issues relate to the design, procurement and installation of the gasification plant, together with continuing challenges with the supply chain that will result in further cost overruns and delays,” an Interserve statement said.
“As a result, the company is making a £70m exceptional contract provision. We will be pursuing every opportunity to mitigate this situation.”
Intererve was awarded the £146m contract with waste management outfit Viridor in 2012, to undertake the engineering, procurement and construction of the recycling and renewable energy centre. Work was expected to be completed in early 2016.
But the job has been plagued by problems, with scaffolders going on strike last month.
