Alberta Transportation is negotiating with a third-party to purchase Carillion Canada's highway maintenance contracts which encompass Athabasca, Lac La Biche, Westlock and Barrhead.
The province has funded Carillion Canada total of $12 million since March 21 for the embattled company to continue its operations up until June 30. In an emailed statement, press secretary to the minster of transportation John Archer said the province is working on a long term solution for highway maintenance in areas of the province contracts to Carillion Canada.
"We are currently in negotiations with a third party that is working to purchase Carillion's Alberta highway maintenance operations," Archer said in an emailed statement. "Once a formal agreement is in place, we will be in a position to release full details."
Carillion Canada parent company, the U.K.-based Carillion PLC, announced it was going into compulsory liquidation Jan. 16. Carillion Canada subsequently announced Feb. 26 it granted creditor protection by the Ontario Superior Court of Justice.
The company's three highway maintenance contracts expire in 2019, 2022 and 2023 and also include the Edmonton area.
In a March 21 interview with multiple press outlets, Minister of Transportation Brian Mason said Carillion Canada was dependent on its parent company to bear the cost of those contracts.
“They were losing money on the contract," Mason said. "They were being subsidized by their British company. That, of course, is no longer available."
A request for comment to Carillion Canada was not returned before publish time.
Archer said the government plans to quickly get an agreement in place.
"We want an agreement in place quickly in order to prepare for the upcoming winter," Archer said.
A followup request to Archer for details on the government's funding arrangement with Carillion Canada after the June 30 deadline was not returned before publish time.
The Alberta Union of Provincial Employees (AUPE) said in a July 4 member update it had met with Mason in June to discuss the ongoing situation with Carillion Canada.
"AUPE has expressed concerns over the future sustainability of Carillion, the job status of our members employed by the company in Alberta, and the status of the first collective agreement negotiated by those members last year," the member update said.
According to the member update, a letter from Mason said the proposed arrangement with the third party would honour all existing labour agreements between Carillion Canada and AUPE.
The province initially provided Carillion Canada with $8.9 million in funding to ensure its continued highway maintenance operations until April 30. Another $3.1 million was then granted to extend that until June 30.
Archer said the province has consulted with experts as it reviews its options with respect to Carillion Canada.
"The government has been consulting with financial, environmental and legal experts as part of its due diligence in reviewing all possible options, to ensure the most prudent use of government dollars, while maintaining a high standard of roadway maintenance across Alberta," Archer said an email.
