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Thu October 29 2020

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Costain’s Belvedere payment was missed last week

13 Dec 10 Despite continuing assurances from its ailing client, Costain was not paid the £2.6m owed to it last Friday for its subcontract work on the Belvedere waste-to-energy facility in southeast London.

The Austrian parent company of Swiss-based main contractor AE&E Inova is in administration but continuing to trade. It has assured Costain that its search for a financial saviour is nearly complete and that it has "binding offers from well-known strategic investors". The Swiss-based company has told Cosatin that it is "working to an aggressive timetable" and is "confident” that it will now be able to secure its future.

Under the Belvedere sub-contract, Costain was supposed to receive a £2.6m stage payment on Friday 10 December. By the morning of Monday 13 December it had not yet been received.

Costain said that it was maintaining “an active dialogue” with AE&E Inova as the latter seeks to secure its future and meet its obligations. Costain is also continuing concurrent “positive discussions” with ultimate project client Cory Environmental, regarding payments and completion of the project.

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