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Carillion's collapse threatens HS2 and other major transport infrastructure projects across the UK | Carillion's collapse threatens HS2 and other major transport infrastructure projects across the UK |
(about 4 hours later) | |
Carillion was handed a series of contracts to carry out major transport infrastructure projects before its collapse. | Carillion was handed a series of contracts to carry out major transport infrastructure projects before its collapse. |
The construction giant is in a partnership which won two HS2 deals worth £1.34bn. | The construction giant is in a partnership which won two HS2 deals worth £1.34bn. |
It was commissioned to design and build a 50-mile section of the high speed railway roughly between Aylesbury and Royal Leamington Spa. | It was commissioned to design and build a 50-mile section of the high speed railway roughly between Aylesbury and Royal Leamington Spa. |
The contracts were awarded in July 2017, when Carillion was already in financial difficulty. | The contracts were awarded in July 2017, when Carillion was already in financial difficulty. |
Carillion and the two other firms in the joint venture - Eiffage and Kier - were forced to give assurances that they could step in to deliver on the work if one of the partners collapsed. | Carillion and the two other firms in the joint venture - Eiffage and Kier - were forced to give assurances that they could step in to deliver on the work if one of the partners collapsed. |
A HS2 spokesman described Carillon going into liquidation as “clearly disappointing for them and the wider UK construction industry”. | A HS2 spokesman described Carillon going into liquidation as “clearly disappointing for them and the wider UK construction industry”. |
He went on: “We are continuing to discuss with Kier and Eiffage the implementation of contingency plans. | He went on: “We are continuing to discuss with Kier and Eiffage the implementation of contingency plans. |
“Work will continue as planned with no unnecessary or additional exposure to the taxpayer.” | “Work will continue as planned with no unnecessary or additional exposure to the taxpayer.” |
The firms are still in the design phase of the deal, with detailed proposals due to be submitted by the end of the year. | The firms are still in the design phase of the deal, with detailed proposals due to be submitted by the end of the year. |
Phase one of the £55.7bn railway will run between London and Birmingham from December 2026, with a second Y-shaped phase extending to the North. | Phase one of the £55.7bn railway will run between London and Birmingham from December 2026, with a second Y-shaped phase extending to the North. |
Carillion are one of around six main contractors for Network Rail, which owns and operates Britain's railway infrastructure. | Carillion are one of around six main contractors for Network Rail, which owns and operates Britain's railway infrastructure. |
It is mostly involved in bridge replacements and track renewal, with contracts worth in total around £150m to £200m. | It is mostly involved in bridge replacements and track renewal, with contracts worth in total around £150m to £200m. |
A Network Rail spokeswoman said: “Network Rail is activating its contingency plans as a result of this unfortunate news. | A Network Rail spokeswoman said: “Network Rail is activating its contingency plans as a result of this unfortunate news. |
“Passengers can be reassured that their services will be running as normal today as Carillion's work for Network Rail does not involve the day-to-day running of the railway.” | “Passengers can be reassured that their services will be running as normal today as Carillion's work for Network Rail does not involve the day-to-day running of the railway.” |
Network Rail pledged to work with the administrators and Carillion's management to ensure the firm's collapse “has as little impact as possible on our projects”. | Network Rail pledged to work with the administrators and Carillion's management to ensure the firm's collapse “has as little impact as possible on our projects”. |
In November 2014 Carillion was one of five companies handed deals to carry out “high value construction work” for Highways England's £5bn five-year investment in England's motorways and major A roads. | In November 2014 Carillion was one of five companies handed deals to carry out “high value construction work” for Highways England's £5bn five-year investment in England's motorways and major A roads. |
It holds a major role in the smart motorway project, through which the hard shoulder is converted to a live traffic lane. | It holds a major role in the smart motorway project, through which the hard shoulder is converted to a live traffic lane. |
Carillion's website also states that it is “delivering transformative pieces of infrastructure” on the road network in Scotland and Wales. | Carillion's website also states that it is “delivering transformative pieces of infrastructure” on the road network in Scotland and Wales. |
PA | PA |
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