UK based construction company Carillion PLC is in the process of liquidating, raising questions about a number of Canadian construction projects; including the new Stanton Territorial Hospital.
Roughly $2.2 billion worth of debt has sunk the UK company, which employs about 6,000 Canadians and 43,000 worldwide.
It’s unclear at this time how will affect the several major construction projects throughout Canada, including many roads as Carillion Canada is the country’s largest road service provider. A spokesperson for the office of Health Minister Glen Abernethey says Carillion is not involved in Stanton’s construction, and so this will not impact construction of the building. The GNWT is now working with the Boreal Health Partnership to determine what the next steps should be.
Carillion has been contracted by the GNWT through BHP, whose services are secured by a bank letter of credit therefore ensuring the availability of equity for the project. BHP remains obligated to fill the contract, despite Carillion providing 50% of their equity.
Carillion Canada could not be reached for comment.
The GNWT assures that Carillion Canada’s bankruptcy does not change BHP’s contractual obligation, and they remain in active discussions with BHP and its partners regarding how the contract will be carried out from this point.
Stanton is still expected to remain on schedule with First Patient Day in mid-2019.