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Re Contract

26th Jan 2009 07:00

26th January 2009

INTERSERVE JOINT VENTURE PREFERRED BIDDER FOR £500m PPP DERBYSHIRE WASTE-

TREATMENT CONTRACT

Interserve, the services, maintenance and building group, in a joint venture with United Utilities, has been named preferred bidder for a waste-treatment contract in Derbyshire. The Public-Private Partnership (PPP) contract will be worth in the region of £500 million.

The provisions of the EU Landfill Directive include the requirement that the UK must halve, in comparison to 1995 levels, the amount of biodegradable municipal waste sent to landfill by 2013. Derbyshire County Council and Derby City Council are committed to meeting their targets and are jointly letting the contract, which covers the design, build and operation of a new facility to treat municipal solid waste. Subject to financial close and planning approval, work on constructing the facility is expected to begin in the spring of 2010, with the contract running for 27 years from that point.

Subject to planning permission being granted, Interserve will construct the new, state-of-art treatment facility at Sinfin Lane in Derby. The plant, to be operated by United Utilities, will employ a clean-burn process known as gasification. Not only can the resulting residue be used as an aggregate in concrete products, the process will also produce electricity that can be sold to the National Grid. The plant will be capable of handling 190,000 tonnes of Derbyshire's and Derby city's waste annually - most of which would otherwise go to landfill. Interserve will take a 50 per cent share of the project's equity and subordinated debt.

"This is a significant step in realising our strategy of taking our well-recognised sustainability expertise and construction skills into the solid-waste-treatment sector," said Adrian Ringrose, Interserve's Chief Executive. "It also represents an evolution in our relationship with United Utilities, a client for whom we have worked for several years in the construction of water- and wastewater-treatment facilities."

- Ends -

For further information please contact:

Giles Scott 0118 960 2307

Head of Corporate Communications

Elizabeth Morley / Tom Roberts 020 7379 5151MaitlandAbout Interserve

Interserve's vision is to be the Trusted Partner of all our stakeholders. We are a services, maintenance and building group operating in the public and private sectors in the UK and internationally. We offer advice, design, construction and facilities management services for society's infrastructure and provide a range of plant and equipment in specialist fields. Interserve is based in the UK and is a FTSE 250 company. It has revenue of £1.7 billion and a workforce of 50,000 people worldwide. Website: www.interserve.com.

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