Treasury shores up funds for waste deal

The Government has stepped in to support Greater Manchester’s £4 billion waste disposal contract after fears about the credit crunch.

The contract, due to be signed earlier this year, has still not been finalised.

And the Treasury has now pledged financial support to schemes like Greater Manchester’s, which is due to be paid for by a private finance initiative (PFI), as banks become reluctant to take a stake in infrastructure projects.

The Treasury has set up a special unit to support £13 billion worth of public investments, and the Greater Manchester Waste contract is eligible to share in the funds.

More than 100 new jobs will be created when the contract to manage the region’s rubbish gets under way.

But Greater Manchester Waste Disposal Authority has still not closed the 25-year contract, which has been in the credit approvals process since last year.