Company’s collapse should not affect AWPR

A major roads project will not necessarily be delayed as a result of the collapse of Carillion, the Economy Secretary said.

Keith Brown told MSPS the £745 million cost of the Aberdeen Western Peripheral Route (AWPR) should also not be affected by the demise of the firm.

Carillion formed one-third of the Aberdeen Roads Ltd (ARL) consortium leading the work alongside Balfour Beatty and Galliford Try.

Mr Brown said the two remaining partners had committed to delivering the remainder of the project, which is nearing completion.

Mr Brown said the Scottish Government did not expect any further AWPR costs as a result of the liquidation of the company, pointing out that the two remaining partners had made reference to “a hole in the project now between £40 and £80 million”.

“That’s for them to consider with the banks and lenders that are part of this consortium, that’s not for the Scottish Government to fill that hole.

“But we will look to see if there are any additional costs, we don’t expect there to be any but of course we are having dialogue with the companies involved.”

He added that the vast bulk of contracts let in relation to the project had been let by the consortium and not Carillion directly and “those should proceed as previously”.