Two Currie & Brown subsidiaries face an unprecedented £54m legal claim. The claim, issued in the Bristol district registry, concerns the cause of deficiencies at the waste-to-energy plant and damages the council claims to have suffered as a result of the plant’s alleged failure to perform. Proceedings are scheduled for April 2009 and will be tried in Bristol by a High Court judge.
Neath Port Talbot Council has issued a High Court writ against two dormant companies in the Currie & Brown Group, which offered technical advice over the project at Crymlyn Burrows, near Neath. It is one of the largest sums ever claimed in litigation relating to the construction industry.
Will Watson, corporate director for the environment at Neath Port Talbot Council, said: “The council is seeking damages following the failure of the materials recycling and energy centre to achieve anything like its contracted performance levels, particularly in terms of diverting waste from landfill, recycling and the production of compost.”
In May it emerged that Neath Port Talbot Council was suing neighbouring Bridgend Council for around £5m in connection with problems relating to the plant, which is officially described as Crymlyn Burrows Materials Recovery and Energy Centre.
Domestic rubbish from both council areas is disposed of at the plant, which processes material for recycling and incinerates other waste. The plant was built and initially run by Portuguese operator HLC, but in 2005 Neath Port Talbot Council pulled the plug on HLC Neath Port Talbot after the firm went into administration.
Neath Port Talbot Council took over running the plant and in 2006 it was reported losses totalling more than £67m could accrue over 25 years unless a new operating partner was found. A legal tug-of-war ensued between the council and HLC’s creditor, the Royal Bank of Scotland, which was seeking to recoup some of its £40m debt with the plant’s assets. The dispute was settled out of court in November 2006, putting the plant firmly in the hands of Neath Port Talbot Council.
Early last year, Neath Port Talbot and Bridgend councils said they were planning to award a new 25-year contract for operating the facility.
In late April the two authorities issued a joint statement, saying: “Bridgend and Neath Port Talbot councils are in discussions concerning a contractual matter related to waste disposal arrangements and both are hopeful that an early resolution will be possible. At this stage, neither council is prepared to make any further comment.”
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Currie & Brown subsidiaries face £54m Welsh PFI claim
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