24th Aug 2020 10:14
(Alliance News) - International Public Partnerships Ltd on Monday noted the announcement by Tideway, the construction company responsible for the "super-sewer" under the River Thames, on the potential impact of the Covid-19 pandemic.
Tideway makes up 9.2% of the FTSE 250 infrastructure-focused investor's portfolio at fair value, as at December 31.
The investee expects a GBP233 million hit on cost and a nine-month impact on schedule, meaning that the total project cost is set to rise to GBP4.13 billion, while the project itself is expected to be completed within the first half of 2025.
Tideway was originally expected to cost GBP3.8 billion to complete, with construction initially set to finish in 2024.
Tideway has conducted discussions with UK water regulator Ofwat on a package of measures which could mitigate the financial effect of Covid-19, with a full agreement expected to be finalised in "the coming months".
INPP is still scheduled to release its interim results on September 10.
Shares in INPP were 0.2% lower at 168.50 pence on Monday in London.
By Dayo Laniyan; [email protected]
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