Alberta is giving Carillion Canada $3.1 million to continue its day-to-day highway maintenance operations until June 30.
A May 9 statement from Ministry of Transportation officials stated the government would extend its previous $8.9-million agreement with Carillion Canada, which funded the company for operations up until April 30. In total, the government has agreed to fund Carillion Canada up to $12 million.
“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," said the May 9 statement, sent by Minister of Transportation press secretary John Archer. "Alberta Transportation continues to monitor its investment in Carillion’s operations closely and receives weekly invoices for payment."
Carillion Canada’s parent company, Carillion PLC, announced it was going through compulsory liquidation Jan. 16.
In a March 21 interview with multiple press outlets, Minister of Transportation Brian Mason said Carillion Canada was depending on its parent company to pay for provincial highway maintenance.
“They were losing money on the contract. They were being subsidized by their British company. That, of course, is no longer available,” Mason said in the interview.
Carillion Canada has three highway maintenance contracts with Alberta Transportation, which expire in 2019, 2022 and 2023. Its coverage area includes Edmonton, Athabasca, Lac La Biche, Westlock and Barrhead.
Mason said the original $8.9-million allotment was to ensure Carillion Canada could continue operating through the winter and spring driving season.
“The problem we had is how we can keep a company that has about 40 per cent of the roads in Alberta continuing to operate and fulfill its obligations to keep our roads safe during the unpredictable weather of an Alberta winter and spring,” Mason said March 21.
At the time, Mason added there was no contractor available who could step in to fulfill Carillion Canada’s highway maintenance obligations on such short notice.
The May 9 statement said the province will work to find long-term solutions to continue maintenance in Carillion Canada’s coverage area.
“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,” the statement said.
Read next week's Athabasca Advocate for more on the story.
