'Carillion liquidation won't affect completion of Sask. hospital': Saskbuilds

By Greg Higgins
January 15, 2018 - 5:00pm

The liquidation of the U.K. based company in charge of constructing and maintaining the Saskatchewan Hospital in North Battleford (SHNB) won’t affect the completion of the facility or any jobs there, according to Saskbuilds.

Earlier today it was announced Carillion, which has a 50 per cent equity share in the Public-Private Partnership (P3) project of the hospital, had to liquidate all assets after creditors and U.K. government officials failed to garner the short-term financing the company needed.

Lisa Danyluk, director of strategy and engagement with SaskBuilds Corporation, responded to battlefordsNOW in an emailed statement, which said the province’s contract for the project is with Access Prairie Partners (APP).

“Carillion is only one member of APP, and construction and completion of SHNB will continue. While APP had designated Carillion to be the company that would provide facility maintenance over the 30-year maintenance and operations phase of the project, if Carillion is not able to provide the service, APP will find a replacement at no additional cost to government.”

According to Danyluk’s statement, APP is aware of Carillion’s situation and has ensured the government maintenance services will be provided for SHNB at no additional cost or delay.

Danyluk’s statement added APP is responsible for completing the SHNB on time and on budget under the P3 construction model.

“Any failure to do so will result in significant financial penalties for APP. That includes ensuring that a maintenance provider is in place and on site to maintain the facility over the 30-year maintenance and operations phase of the contract,” said Danyluk.

The statement added one of the benefits of a P3 project is the risks and costs are the responsibility of the private sector and not the government. According to Danyluk, if a new maintenance provider is needed, then all the responsibility to find a new one and have them in place in time for the hospital to open lies entirely on APP.

She added any additional costs will also fall on APP to bear, and far as she is aware, the liquidation of Carillion should not affect any jobs at the SHNB.

battlefordsNOW has not received a response by Access Prairie Partners at the time of publish.

 

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