Pair to share UK rail project after Carillion collapse

Pair to share UK rail project after Carillion collapse
Pair to share UK rail project after Carillion collapse

British builder Kier and French peer Eiffage have agreed to share partial construction of a UK high-speed rail link after the collapse of their partner Carillion, the pair said Monday.

The British government had awarded the trio a lucrative contract last July to partly build High Speed Two (HS2), a rail project creating faster links between London in southern England and cities in the centre and north of the country.

However, Carillion went bust one week ago, announcing its liquidation after the heavily-indebted company failed to secure a last-minute financial rescue from the government and banks.

“On HS2, Kier and Eiffage are now 50/50 joint venture partners delivering two of the seven civil engineering packages,” said a statement Monday.

A total of 51 people employed by Carillion who had been working on the rail project have been offered the chance to carry on as part of the new partnership.

Carillion had public sector and private partnership contracts worth £1.7 billion ($2.4 billion, 1.9 billion euros) prior to its collapse.

The UK government has meanwhile said that the company’s 19,500 staff in public sector jobs will continue to be paid, at a potential cost to the taxpayer of hundreds of millions of pounds.

Source: News Agencies