May 11, 2018 6:21 pm
Updated: July 26, 2018 9:37 pm

Government makes ‘additional $3.1M available’ to financially troubled Carillion to maintain Alberta highways

A file photo of the highway leading into Sundre, Alta.

Leslie Young / Global News
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Less than two months after the Alberta government made up to $8.9 million available to a fiscally troubled company to continue its highway maintenance operations in the province, Alberta Transportation confirms it is now making more funds available to Carillion Canada.

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“The Government of Alberta will make an additional $3.1 million available to Carillion to help it meet its obligations and give certainty to Carillion’s employees, suppliers and other groups that they will continue to get paid,” reads an email the government department sent to Global News on Friday. “Alberta Transportation continues to monitor its investment in Carillion’s operations closely and receives weekly invoices for payment.”

The previous agreement between the government and Carrillion was announced in March. The deal expired on April 30; Alberta Transportation said the agreement has been extended until June 30.

Carillion Canada’s U.K.-based parent construction company – Carillion PLC – went insolvent in January. Carillion Canada later filed for creditor protection in an Ontario court.

The Canadian branch said its decision to seek protection under the Companies’ Creditors Arrangement Act (CCAA) was forced by the compulsory liquidation of its parent company when it couldn’t arrange short-term financing.

The developments presented a challenge for Alberta, whose previous Progressive Conservative government privatized road maintenance services. Carillion Canada holds three of eight provincial highway maintenance contracts, which make the company responsible for about 43 per cent of the province’s highways.

The NDP government made the bailout money available to Carillion “in order to help the contractor maintain its day-to-day operations and ensure safety and mobility for people travelling on Alberta’s highway network.”

READ MORE: Carillion gets $9M bailout from Alberta to continue winter highway maintenance

The cash injection was intended to make sure there was no disruption in plowing, sanding and other similar work through to the end of April. On Friday, Alberta Transportation said extending the agreement will also provide peace of mind.

“Because of this agreement, Albertans can rest assured that highways will continue to be maintained to high standards of safety and mobility. We continue to work with Carillion and other parties on options for long-term solutions to continue maintenance and safety on sections of Alberta’s highway network covered by Carillion’s contracts.”

– With files from Global News’ Karen Bartko and The Canadian Press

© 2018 Global News, a division of Corus Entertainment Inc.

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