The U.K. based construction company in charge of constructing the new Saskatchewan Hospital in North Battleford has gone into liquidation, putting thousands of jobs at risk across Canada, and leaving uncertainty for the completion of the hospital.
Carillion, which employs more than 6,000 people in Canada and 40,000 around the world, has a 50 per cent equity share of the consortium Access Praries Partnership in the Public Private Partnership (PPP) to design, build, finance and maintain the new psychiatric hospital in North Battleford.
The company released a statement on Monday, saying it had no choice but to liquidate its assets after weekend talks with creditors and government officials failed to garner the short-term financing it needed.
The company has been struggling to reorganize amid debts of about 900 million pounds ($1.54 billion CDN) and a pension deficit of 590 million pounds. Carillion's share prices have also dropped 70 per cent in the past six months.
The new psyciatric facility, which has a development value of $407 million, is almost completed, and at last reports was on track to be completed by the scheduled timeframe.
Carillion PLC was slated to not only design, build and finance the hospital project in North Battleford, but was also contracted to manage and maintain the building over a 30-year period.
When the PPP was announced in Sept. 2015, Carillion touted its reputation as a "market leader in PPP projects, particularly in the health care sector."
"We look forward to working with the Saskatchewan Authorities as a valued client and remain committed to providing exceptional service throughout the 30-years facilities and maintenance project," said Carillion President and CEO Simon Buttery, in Sept. 2015.
The Access Prairies Partnership consortium includes Graham Design Builders LP, Carillion Canada Inc., Kasian Architecture Interior Design and Planning Ltd., Gracorp Capital Advisors LP, Carillion Private Finance Ltd., and WSP Canada.
battlefordsNOW is waiting to from the Saskatchewan Health Authority on the exact impact this news will have on the hospital project in North Battleford.
More to come.
On Twitter: @battlefordsNOW
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