Interserve has revealed it expects to take a £70 million hit due to delays on a waste to energy project in Glasgow.

Work on the £154m Glasgow Recycling and Renewable Energy Centre (GRREC) began in 2013 and was scheduled to begin operations in early 2016.

However, the scheme has faced a number of delays and Interserve said its construction division has been "significantly adversely impacted".

-- Advertisement --

In a trading update, the firm said: "The issues relate to the design, procurement and installation of the gasification plant, together with continuing challenges with the supply chain that will result in further cost overruns and delays.

"As a result the Board anticipates a £70m exceptional contract provision to be taken in the first half of 2016, resulting in a similar level of cash outflow spread across 2016 and 2017."

(LM)