Update on Manchester Waste

2 May 2017

Update on Manchester Waste

The Greater Manchester Waste Disposal Authority (GMWDA) today published minutes of a meeting held on 26 April 2017 which refer to a future intended termination of the Recycling & Waste Management Private Finance Initiative (PFI) Contract. This contract relates to Manchester Waste VL Co (the VL Co project company), which is jointly owned by John Laing and Viridor. Manchester Waste TPS Co, which is jointly owned by John Laing, Viridor and Inovyn, is contractually linked to Manchester Waste VL Co.

As stated in John Laing's 2016 results issued on 7 March 2017, if the GMWDA were to seek to take the VL Co project into public ownership (through termination or otherwise), then the VL Co project company would expect appropriate compensation to be paid to all stakeholders. Any other outcome would be strongly defended. There are provisions in the PFI Contract which allow for compensation to be paid on termination.

Both Manchester Waste projects have been operational for two years and the VL Co project company has been achieving diversion of landfill ahead of contractual requirements. Both project companies continue to work with the GMWDA.

John Laing continues to believe there will be a satisfactory resolution with the GMWDA and is working with its co-investors and the project companies to protect the value of the equity in the VL Co project and also to minimise any impact on Manchester Waste TPS Co. Taken together, the fair value of the two investments represented 8% of John Laing's investment portfolio of £1,176 million at 31 December 2016; in valuing the two investments, care was taken to anticipate a number of potential outcomes. In addition, like all John Laing's investments, the two investments are made on a non-recourse basis.

ENDS

Enquiries:

John Laing - 0207 901 3200

Patrick O'D Bourke, Tom Randell

Maitland - 0207 379 5151

James Isola