Bypass work continues despite liquidation

Work will continue on the AWPR site, pictured above is the new road southbound near Foveran
Work will continue on the AWPR site, pictured above is the new road southbound near Foveran

Work on the Aberdeen Western Peripheral Route (AWPR) will continue despite this week’s announcement that construction giant Carillion has gone into liquidation.

The company is a key partner in the the £745 million project to provide new 36-mile bypass designed to reduce road congestion in the north east.

It was awarded the contract in December 2014 along with Balfour Beatty and Galliford Try as part of a joint bid under the name Aberdeen Roads Limited.

A spokesman for Transport Scotland, which manages the project, said: “We expect that any impact on the AWPR will be mitigated by the fact that the Carillion’s construction partners are joint and severally liable and as such, the other two construction partners remain fully responsible for the completion of the works.

“Aberdeen Roads Limited, the construction joint venture for the project, confirmed recently that they remain committed to the delivery of this project.”

Aberdeenshire East MSP Gillian Martin, meanwhile, has written to both Aberdeen Roads Limited and the Cabinet Secretary Keith Brown for assurances regarding the scheme’s final construction stages.

She said: “This will be an uncertain time for those employed by the firm and I will be raising concerns about their situation too. While it is clear Carillion is in difficulty at the moment, we should remain positive that ongoing efforts to restructure and secure its future will prove successful. The AWPR has been a long-awaited project for the north east which has been thanks to the determination of the Scottish Government. I am hopeful that every necessary step will be taken to bring this huge infrastructure to its completion date in the Spring.”

Philip Green, Carillion’s chairman, said the decision had been taken despite “huge efforts” to restructure the company and deliver a sustainable future.

He added: “In recent days, however, we have been unable to secure the funding to support our business plan and it is with the deepest regret that we have arrived at this decision. We understand that HM Government will be providing the funding required by the Official Receiver to maintain the public services carried on by Carillion staff, subcontractors and suppliers.”