Carillion woes ‘won’t risk AWPR’, says Transport Scotland

Milltimber BraeThe completion of work on the £745 million Aberdeen city bypass road is not in any danger despite turmoil at one of the project’s consortium partners, Transport Scotland has insisted.

Last week construction and infrastructure firm Carillion continued a troubled spell after it issued a profit warning with chief executive Richard Howson stepping down with immediate effect.

Shares in Carillion fell over 35% following the announcement as the firm said it would need to bolster its balance sheet and was struggling to stay within borrowing limits.

The company has now drafted in accountancy giant EY to help carry out a review of the business.

The share price showed signs of recovery after a partnership featuring Carillion won two key UK government contracts for the HS2 rail line.

And just today the firm announced it has been awarded two further government contracts worth a combined £158m.

Yesterday, Transport Scotland confirmed the two other firms building the Aberdeen bypass road, Balfour Beatty and Morrison Construction, face taking on the obligations of a third partner if it should, for any reason, pull out of the consortium.

A spokesman said the construction contract at the heart of the £745m route – due to open this winter – would remain intact, no matter what.

He told the Press & Journal: “As is usual in projects of this nature, the contract makes provision for a wide variety of circumstances, including the possibility of withdrawal of one of the partners.

“This ensures the project can be successfully delivered in all circumstances.”

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