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Carillion collapse will not affect Newtown bypass

Created on 17/01/2018 @ 09:14
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Welsh Government officials have confirmed the collapse of construction giant Carillion will not affect the building of the Newtown bypass.

While the company, which went into liquidation on Monday, was not directly involved in the contract, there had been concern that sub contractors and other companies involved in other schemes could be affected.

However, both the Welsh Government and bypass construction company Alun Griffiths Contractors have both confirmed they are not affected by Carillion's liquidation.

The news comes after MyNewtown reported last weekend how Alun Griffiths itself has been acquired by road specialist Tarmac. Tarmac and Alun Griffiths said the acquisition would not affect work on the near £60 million town bypass.

Montgomeryshire AM, Russell George, said he had also received assurances from the Welsh Government's Cabinet Secretary for Finance, Mark Drakeford, that the Carillion issue would not affect the new road.

“The collapse of Carillion threatens ongoing projects and jobs, and in addition threatens progress on the long term development of the Welsh economy," said Mr George.
“It is deeply regrettable that the company has not been able to find suitable financing options with its lenders.
“Carillion has significant involvement in Wales on a number of key projects and I had the opportunity of questioning the Welsh Government on the ramifications of the company’s collapse on schemes such as the A40, A55 and the company’s role as a partner for Abellio in the potential rail franchise.
“The Cabinet Secretary confirmed that they expect for there to be “little direct impact” but that they will continue to closely monitor the indirect exposure of Carillion’s collapse on small and medium sized companies in Wales.
“I was also pleased to have gained assurances from Alun Griffiths Contractors who are managing the construction of the Newtown Bypass that it will not be affected at all by Carillion’s collapse and that the construction of the bypass remains on track for completion in 12 months’ time.”

Photo: Work on a bridge along the Newtown Bypass at the rear of Treowen

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