Fallout from the collapse of British construction giant Carillion PLC will not impact Westlock County residents as the Canadian branch of the company is still in operation, while its contract with the province covers only numbered highways.
“We don’t have a contract with Carillion or anything. That’s strictly a Transport Alberta issue,” said county CAO Leo Ludwig.
“I know Alberta Transportation has contingencies that they’re looking at. But as far as county roads go, it will not have any impact.”
On Jan. 15, Carillion PLC released a press release stating it was forced into compulsory liquidation after accruing a debt of nearly $1.2 billion U.S. and an $808 million U.S. pension deficit. The company approached the British government and lenders for a bail out, but was unable to reach a deal.
Last week Carillion Canada spokesperson Cody Johnstone said that it’s business as usual.
“Carillion’s Canadian operations are not in liquidation and continue uninterrupted,” Johnstone said.
Carillion Canada holds a contract with Alberta Transportation to maintain and clear major highways in central Alberta.
Even with the company’s assurances, Alberta Transportation communication advisor Wayne Wood says contingency plans are being considered.
“Alberta Transportation is in touch with Carillion Canada and is monitoring the situation closely as its parent company in the UK goes into receivership,” Wood said via e-mail.
“We’re still working on it. The main thing for the public to understand is that highway maintenance will continue in all regions of the province and that driver safety will not be impacted. Drivers can be assured of a continuation of the high standard of highway maintenance they expect in this province.”
Wood explained that while the exact details of the contingency plans are not finalized, several other area contractors may be asked to fill the void.
Carillion Canada has a nation-wide portfolio including provincial highway maintenance for Edmonton, Athabasca, Lac La Biche, Westlock and Barrhead.
The company has three contracts for highway maintenance with Alberta Transportation valued at a total of approximately $95 million, according to Wood.
Those contracts expire in 2019, 2022 and 2023, according to the ministry website.
